NextEra Energy (NEE) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, NextEra Energy (NEE) closed at $73.65, marking a +1.64% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.

The parent company of Florida Power & Light Co.'s shares have seen a decrease of 0.48% over the last month, surpassing the Utilities sector's loss of 1.81% and falling behind the S&P 500's gain of 3.85%.

The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. On that day, NextEra Energy is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 7.29%. Our most recent consensus estimate is calling for quarterly revenue of $7.33 billion, up 20.82% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $28.95 billion, which would represent changes of +7.29% and +16.96%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 19.72. This expresses a premium compared to the average Forward P/E of 17.75 of its industry.

Meanwhile, NEE's PEG ratio is currently 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research