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If You Invested $1000 in NextEra Energy a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in NextEra Energy (NEE) ten years ago? It may not have been easy to hold on to NEE for all that time, but if you did, how much would your investment be worth today?

NextEra Energy's Business In-Depth

With that in mind, let's take a look at NextEra Energy's main business drivers.

Juno Beach, FL-based NextEra Energy Inc. (previously known as FPL Group Inc.) is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The company has both regulated and non-regulated energy-related products and services, with operations in 27 states in the U.S. and four provinces in Canada. NextEra Energy was founded in 1925. The company serves nearly 10 million people through approximately 5 million customer accounts.

NextEra Energy's primary subsidiaries are Florida Power & Light Company (FPL), Gulf Power Company and NextEra Energy Resources LLC (NEER). NextEra Energy Capital Holdings, Inc. (NEECH) is a wholly owned subsidiary of NextEra, which owns and provides funds for NEER and other operating subsidiaries apart from FPL and its subsidiaries. In 2014, NextEra Energy formed NextEra Energy Partners, LP  to own, manage and acquire contracted clean energy projects.

NextEra Energy produces a large volume of electricity from wind and solar energy. The company, through its subsidiaries, is advocating higher usage of clean fuel sources to generate electricity and aiming to reduce total carbon emissions by 67% within 2025 from 2005 base.

FPL, Gulf Power and NEER contributed $12,600 million, $1,503 million and $3,053 million to its top line, respectively, in 2021. Corporate and Other negatively impacted the top line by $87 million in 2021.

On Jan 1, 2021, Gulf Power legally merged into FPL. Gulf Power will continue as a separate operating division during 2021, serving the existing customers under separate retail rates.

NEER is the competitive energy business of NextEra and plans to add 22,675-30,000 MW of clean power generation assets across the United States over the 2021-2024 time frame. Amid the challenges posed by the outbreak of COVID-19, the company ensured that its major capital projects continue to proceed without any hindrances.



Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in NextEra Energy ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2012 would be worth $5,015.47, or a gain of 401.55%, as of August 9, 2022, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 195.25% and the price of gold went up 6.18% over the same time frame.

Analysts are forecasting more upside for NEE too.

NextEra Energy’s second-quarter earnings were better than expected. NEE through the proper execution of organic projects and strategic acquisitions, is expanding its operations. NextEra currently has a lot of renewable projects in its backlog and the number is rising every quarter, which is aiding NextEra in cutting emissions. The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Improving Florida economy and FPL’s reliable services are expanding its customer volume every quarter. NextEra has ample liquidity to meet its near-term debt obligations. NEE’s shares have outperformed the industry in the past six months. However, the nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings.

Over the past four weeks, shares have rallied 8.48%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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