In the latest trading session, NextEra Energy (NEE) closed at $82.59, marking a -1.44% move from the previous day. This change lagged the S&P 500’s 0.76% loss on the day. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had lost 1% over the past month, lagging the Utilities sector’s gain of 1.22% and the S&P 500’s gain of 2.18% in that time.
NextEra Energy will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. In that report, analysts expect NextEra Energy to post earnings of $0.51 per share. This would mark year-over-year growth of 24.39%. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, up 13.82% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NextEra Energy currently has a Forward P/E ratio of 26.86. This represents a premium compared to its industry’s average Forward P/E of 17.25.
Investors should also note that NEE has a PEG ratio of 2.78 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. NEE’s industry had an average PEG ratio of 3.16 as of yesterday’s close.
The Utility – Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.