NextEra Energy (NEE) closed the most recent trading day at $175.70, moving +0.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 3.74% in the past month. In that same time, the Utilities sector lost 1.9%, while the S&P 500 lost 1.4%.
Investors will be hoping for strength from NEE as it approaches its next earnings release, which is expected to be January 25, 2019. The company is expected to report EPS of $1.54, up 23.2% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 10.76% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. NEE is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 20.94 right now. Its industry sports an average Forward P/E of 18.02, so we one might conclude that NEE is trading at a premium comparatively.
It is also worth noting that NEE currently has a PEG ratio of 2.42. 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 3.2 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 96, which puts 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.