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NextEra Energy (NEE) Gains As Market Dips: What You Should Know

NextEra Energy (NEE) closed the most recent trading day at $207.55, moving +0.57% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 1.4% over the past month. This has lagged the Utilities sector's gain of 4.99% and the S&P 500's gain of 4.13% in that time.

NEE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.29, up 8.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.53 billion, up 11.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.34 per share and revenue of $18.19 billion, which would represent changes of +8.31% and +8.66%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NEE. These recent revisions tend to reflect the evolving nature of short-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. 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 0.72% lower. NEE is currently a Zacks Rank #3 (Hold).

Investors should also note NEE's current valuation metrics, including its Forward P/E ratio of 24.73. This valuation marks a premium compared to its industry's average Forward P/E of 20.47.

It is also worth noting that NEE currently has a PEG ratio of 3.12. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.88 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 154, putting it in the bottom 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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