In the latest trading session, NextEra Energy (NEE) closed at $73.01, marking a -1.38% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.49%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.
The parent company of Florida Power & Light Co.'s shares have seen an increase of 5.26% over the last month, surpassing the Utilities sector's gain of 0.25% and the S&P 500's loss of 8.15%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.99, reflecting an 8.79% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.99 billion, indicating a 21.92% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.68 per share and revenue of $29.76 billion, indicating changes of +7.29% and +20.24%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. NextEra Energy is currently a Zacks Rank #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 20.14. This signifies a premium in comparison to the average Forward P/E of 18.01 for its industry.
Also, we should mention that NEE has a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NEE's industry had an average PEG ratio of 2.61 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
