NextEra Energy (NEE) closed the most recent trading day at $77.88, moving +2.1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the parent company of Florida Power & Light Co. had lost 8.57% over the past month, lagging the Utilities sector’s loss of 5.94% and the S&P 500’s gain of 0.84%.
The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is predicted to post an EPS of $1.2, indicating a 6.19% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.05 billion, up 13.65% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.02 per share and a revenue of $30.93 billion, signifying shifts of +8.36% and +12.84%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 19. Its industry sports an average Forward P/E of 16.68, so one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 2.36 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. NEE’s industry had an average PEG ratio of 2.46 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 112, finds itself in the top 46% echelons of all 250+ industries.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
