Yahoo Finance NextEra Energy (NEE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, NextEra Energy (NEE) closed at $256.24, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.94% loss on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 4.54% in the past month. In that same time, the Utilities sector lost 5.2%, while the S&P 500 gained 0.02%.
NEE will be looking to display strength as it nears its next earnings release, which is expected to be July 24, 2020. On that day, NEE is projected to report earnings of $2.51 per share, which would represent year-over-year growth of 6.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.27 billion, up 6.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.10 per share and revenue of $20.59 billion. These totals would mark changes of +8.72% and +7.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NEE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. NEE is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 28.52 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.73.
Investors should also note that NEE has a PEG ratio of 3.63 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 3.46 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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