NextEra Energy to Report Q4 Earnings: Buy, Sell or Hold the Stock?

NextEra Energy NEE is scheduled to release its fourth-quarter 2025 results on Jan. 27, before market open. The Zacks Consensus Estimate for earnings is currently pegged at 53 cents per share on revenues of $6.55 billion.Fourth-quarter earnings estimates have gone down 8.62% over the past 60 days. The bottom-line projection indicates no change from the year-ago quarter’s number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 21.72%.Image Source: Zacks Investment ResearchNEE Stock’s Earnings Surprise HistoryNextEra Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.39%.Image Source: Zacks Investment ResearchWhat the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for NextEra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.NEE’s Earnings ESP: NextEra Energy has an Earnings ESP of -0.47%.Zacks Rank of NEE: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Some companies in the same industry with the right combination of the two factors for an earnings surprise this season are Ameren AEE, Alliant Energy LNT and Pinnacle West Capital PNW. AEE, LNT and PNW have an Earnings ESP of +0.66%, +0.87% and +460%, respectively, and carry a Zacks Rank #2 each.Factors Likely to Have Influenced NEE Stock’s Q4 ResultsFlorida Power & Light (“FPL”), NextEra Energy’s subsidiary, continues to benefit from Florida’s strong economic growth, which is driving steady quarterly customer additions. Strategic capital investments are enabling FPL to deliver reliable service while keeping electricity bills roughly 40% below the national average. These competitive rates help attract and retain customers, supported by the ongoing shift toward renewable assets that is gradually reducing fuel costs in customer bills.FPL holds a strong foothold in Florida’s utility market, supported by long-term franchise agreements with various municipalities. These 30-year exclusive contracts provide service rights within defined areas, ensuring operational stability and long-term growth opportunities for the company, and are likely to have fourth-quarter earnings like previous quarters.NextEra Energy has been benefiting from rising energy demand driven by data center expansion and growing power needs in the Permian Basin. Backed by a strong supply chain, the company continues to provide affordable electricity through scalable, low-cost renewable projects, leveraging its scale, expertise and advanced technology to capitalize on higher U.S. power demand.Courtesy of its expected strong performance of the nuclear fleet, contributions from NEE’s Energy Resources unit are expected to have remained strong in the fourth-quarter. New projects placed into service are likely to have contributed to fourth-quarter earnings.NEE Stock Returns Better Than Its IndustryNextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.42%, ahead of the industry average of 10.47%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The company's current ROE indicates that it is using shareholders’ funds more efficiently than peers.Image Source: Zacks Investment ResearchNEE Stock’s Price PerformanceNEE’s shares have gained 18.2% in the past six months compared with the Zacks Utility – Electric Power industry’s rise of 7.9%.Image Source: Zacks Investment ResearchNextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is trading at 21.17X compared with its industry’s 15.64X.Image Source: Zacks Investment ResearchInvestment ThesisFlorida’s strong economic rise is driving higher demand and customer growth, which is benefiting NextEra Energy. NEE’s ongoing investments in renewables and battery storage strengthen its ability to deliver reliable, sustainable power.Through disciplined expense management, NextEra Energy keeps utility bills well below the national average, enhancing the affordability of its services and attracting more customers.NextEra Energy’s return is currently better than the industry, but the stock's current premium valuation, holding existing positions, may be the most prudent approach for now.Summing UpNextEra Energy continues to deliver stable performance, supported by rising demand for clean energy across its service territories. Ongoing expansion of its renewable portfolio and Florida’s strong economic growth are creating additional growth opportunities.With demand and the customer base steadily increasing, the company remains well positioned for growth, making it a compelling investment at current levels. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ameren Corporation (AEE): Free Stock Analysis Report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report Alliant Energy Corporation (LNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks