NextEra is Trading Above 50 & 200 Day SMA: Is it Time to Add the Stock?

Core Insights - NextEra Energy (NEE) is currently trading above its 50-day and 200-day simple moving averages, indicating a bullish trend and steady share price growth over the past twelve months following earnings beats in the last four quarters [1][7]. Financial Performance - NEE expects annual EPS growth of 6-8% through 2027, supported by clean energy investments [7]. - The company anticipates its 2025 earnings per share to be in the range of $3.45-$3.70, reflecting a year-over-year increase from $3.43 [17]. - The Zacks Consensus Estimate for NEE's 2025 and 2026 earnings per share indicates growth of 7.29% and 7.88%, respectively [17]. Investment Strategy - NextEra Energy has a robust investment plan, including nearly $21.7 billion allocated for Transmission & Distribution projects from 2025 to 2029 to support customer growth [10]. - The company plans to invest $25 billion in clean energy assets from 2025 to 2029, aiming to add 36.5-46.5 gigawatts of new renewables to its generation portfolio [11]. Competitive Position - NEE has outperformed the Zacks Utility Electric Power industry, the Zacks Utilities sector, and the S&P 500 over the past three months [5]. - The company enjoys one of the lowest cost structures in the utility industry, which supports robust profit margins and enhances its competitive position [13]. - NextEra Energy's trailing 12-month return on equity (ROE) is 12.31%, surpassing the industry average of 10.14% [14]. Dividend Policy - NEE plans to increase its dividend rate by 10% annually through at least 2026, with a current annual dividend of $2.27 per share and a yield of 3.0%, which is higher than the S&P 500's yield of 1.49% [20]. Valuation - NextEra Energy is currently valued at a premium compared to its industry, trading at a forward 12-month P/E ratio of 19.72X, compared to the industry average of 14.99X [23].