Distribution Is Sustainable As Long We Develop Time Travel By 2027 Viorika/iStock via Getty Images In April of this year, we switched NextEra Energy Partners LP. (NYSE:NEP) to a Sell rating. So we would not count on the current distribution becoming your annualized total return profile in the next 5 years. We rate NextEra Energy Partners, LP units a Sell and think there is substantial downside once the distribution is realigned. Source: Lower For Longer The stock realized that resistance was futile and move ...

Core Insights - DTE Energy (DTE) is currently viewed as a more attractive investment compared to NextEra Energy (NEE) for those seeking undervalued stocks in the Utility - Electric Power sector [1] Valuation Metrics - DTE Energy has a forward P/E ratio of 18.46, while NextEra Energy has a higher forward P/E of 23.68 [5] - The PEG ratio for DTE is 2.27, indicating a better valuation relative to its expected earnings growth compared to NEE's PEG ratio of 2.92 [5] - DTE's P/B ratio stands at 2.30, which is lower than NEE's P/B ratio of 2.78, suggesting DTE is more favorably valued in terms of market value to book value [6] Earnings Outlook - DTE Energy holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while NextEra Energy has a Zacks Rank of 3 (Hold), reflecting a less favorable earnings outlook [3][4] - The solid earnings outlook for DTE, combined with its favorable valuation metrics, positions it as the superior value option in comparison to NEE [6]

Core Viewpoint - NextEra Energy's shares have increased by 22.7% over the past year, outperforming its industry growth of 18.8% and the Zacks Utilities sector, driven by strong company performance and customer growth [1][3]. Group 1: Factors Driving Stock Performance - Improving economic conditions in Florida are benefiting NextEra Energy, with its Florida Power & Light Company (FPL) residential bills being 40% below the national average, providing a competitive edge [3]. - FPL has invested in undergrounding power lines, enhancing service reliability and power distribution infrastructure, which helped avoid 85,000 outages during Hurricane Debby due to smart grid technology [3]. - NextEra Energy Resources is experiencing demand growth through a replacement cycle and new growth cycle, adding over 3,000 megawatts (MW) of renewables and storage projects to its backlog, including 860 MW from agreements with Google [4]. Group 2: Financial Performance and Estimates - NextEra Energy's earnings per share (EPS) for 2024 is projected to be between $3.23 and $3.43, up from $3.17 a year ago, with expected year-over-year growth of 6.94% for 2024 and 8.34% for 2025 [6][7]. - The company has a trailing 12-month return on assets (ROA) of 3.83%, surpassing the industry average of 2.82%, indicating efficient asset utilization [8]. Group 3: Capital Return and Dividend Strategy - NextEra Energy plans to increase its annual dividend rate by 10% at least through 2026, with a current annual dividend of $2.06 per share and a dividend yield of 2.59%, outperforming the S&P 500 Composite's yield of 1.56% [10]. - The company is currently trading at a premium compared to its industry on a forward 12-month P/E basis, reflecting strong market positioning [11]. Group 4: Summary of Competitive Advantage - NextEra Energy's stable performance is supported by rising demand for clean energy, reliable services, and low electricity bills, creating a significant competitive advantage in its service territories [11].

Cindy Shebley/iStock Editorial via Getty Images In our last NextEra (NYSE:NEE) review, we asked ourselves how sustainable the company earnings growth story trajectory was. We reported risks on inflationary costs and higher interest rates vs. NextEra's stock price performance. Our assessment clearly selected more discounted EU renewable players, such as Enel. Looking at the stock price performance, the US player was flat, while Enel grew by more than 40%, also outperforming the S&P change. This is not a comp ...

Core Viewpoint - NextEra Energy's recent earnings report shows mixed results, with adjusted earnings surpassing estimates while total revenues lagged significantly behind expectations, raising questions about future performance leading up to the next earnings release [2][3]. Financial Performance - Adjusted earnings for Q2 2024 were 96 cents per share, beating the Zacks Consensus Estimate of 93 cents by 3.2% and reflecting a year-over-year increase of 9.1% [2] - Total operating revenues for Q2 were $6.06 billion, falling short of the Zacks Consensus Estimate of $7.26 billion by 16.8% and down 17.4% year over year [3] Segment Results - Florida Power & Light Company reported revenues of approximately $4.38 billion, down 8.1% from $4.77 billion a year ago, with earnings of 60 cents per share compared to 57 cents previously [4] - NextEra Energy Resources generated revenues of $2.56 billion, a decrease of 27.2% from $3.5 billion in the prior year, with earnings of 42 cents per share, up from 39 cents [4] Highlights and Strategic Initiatives - Florida Power & Light has saved customers nearly $16 billion in fuel costs since 2001 through generation modernization and solar portfolio expansion [6] - NextEra Energy Resources added 3,015 MW of renewable projects to its contracted renewables backlog, which now totals nearly 22.6 gigawatts [7] Financial Update - As of June 30, 2024, cash and cash equivalents were approximately $1.55 billion, down from $2.7 billion at the end of 2023, while long-term debt increased to $68.5 billion from $61.4 billion [8] - Cash flow from operating activities in the first half of 2024 was $7 billion, compared to $4.8 billion in the same period last year [8] Guidance and Future Outlook - NextEra Energy reaffirmed its 2024 earnings guidance in the range of $3.23-$3.43 per share, with a midpoint of $3.33, which is lower than the Zacks Consensus Estimate of $3.40 [8] - For 2025, the company anticipates earnings per share of $3.45-$3.70 and expects 6-8% annual growth through 2026, based on 2024 adjusted earnings [9] Industry Context - NextEra Energy is part of the Zacks Utility - Electric Power industry, which has seen mixed performance among peers, such as Avangrid, which reported a year-over-year revenue increase of 21.2% [13]

Some of the worst economic crises in decades couldn't stop these three companies from lining shareholder pockets with cash. The economy doesn't always go up; recessions occur when the economy contracts, which can have real-world consequences for consumers, businesses, and the stock market. Despite recession talk ramping up in the media, nobody knows when the next recession will happen or how severe it will be. Investors can prepare their portfolios by looking for stocks with a proven long-term growth histor ...

Investors looking for stocks in the Utility - Electric Power sector might want to consider either FirstEnergy (FE) or NextEra Energy (NEE) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends ...

The U.S. is entering an unprecedented period (and I'm not talking about the upcoming Presidential election). After decades of static power demand, the country is about to stomp on the accelerator. Forecasters expect the country's electricity demand to grow four times faster over the next 20 years compared to the prior two decades. Several catalysts are driving this acceleration, including onshoring of manufacturing, growing electric vehicle (EV) adoption, and the expansion of data-center capacity. NextEra E ...

Core Viewpoint - NextEra Energy is committed to rewarding shareholders through consistent dividend increases and a focus on renewable energy investments [2][4][6] Dividend History and Growth - NextEra Energy has raised its dividend for 27 consecutive years, with a compound annual growth rate (CAGR) of 11% from $0.66 per share in 2013 to $1.87 per share in 2023 [4] - The company expects to pay dividends of $0.515 per share in each quarter of 2024, projecting a total payout of approximately $4.23 billion for the year [5] - In comparison, NextEra Energy returned $3.78 billion and $3.35 billion in dividends to shareholders in 2023 and 2022, respectively [5] Future Dividend Policy - NextEra Energy announced a dividend policy in February that aims for an annual increase of about 10% through 2026, based on the expected payout of $2.06 per share in 2024 [6] Investment Consideration - The stock is currently trading at a price-to-operating cash flow multiple of 11, suggesting it may be an opportune time for investors to consider adding NextEra Energy to their portfolios [7]

Core Viewpoint - NextEra Energy is experiencing strong business growth driven by favorable market conditions and expects solid earnings in the future [1][4]. Financial Performance - The company reported second-quarter adjusted earnings per share (EPS) of $0.96, exceeding analysts' expectations by $0.06 [2]. - Operating revenue decreased to $6.07 billion from $7.35 billion year-over-year, falling short of forecasts which anticipated $7.03 billion [2]. Market Reaction - Shares of NextEra Energy increased by 4.1% to $75.10, reflecting a year-to-date rise of approximately 24% [3]. Strategic Outlook - CEO John Ketchum highlighted that "strong tailwinds" are creating opportunities for NextEra to replace less efficient power generation and meet growing demand across sectors [5]. - The company reaffirmed its guidance for the next four fiscal years, indicating confidence in its financial trajectory [6]. Subsidiary Performance - Net income for Florida Power & Light increased by $80 million to $1.23 billion, driven by ongoing investments [7]. - Adjusted net income for NextEra Energy Resources rose by $84 million to $865 million, supported by increased power production, including a partnership with Google to meet data center power needs [7]. Future Expectations - The CEO expressed that the company aims to deliver financial results at or near the top of its adjusted EPS expectations through 2027 while maintaining a strong balance sheet [8].