Why NextEra Energy (NEE) Dipped More Than Broader Market Today

Core Viewpoint - NextEra Energy is expected to show positive earnings growth in its upcoming earnings report, with projected EPS and revenue increases compared to the previous year [2][3]. Group 1: Stock Performance - NextEra Energy's stock closed at $78.37, reflecting a -3.31% change from the previous day, underperforming the S&P 500's daily loss of 0.34% [1] - Over the past month, NextEra Energy's stock has increased by 1.77%, outperforming the Utilities sector's loss of 3.09% and the S&P 500's gain of 1.19% [1] Group 2: Earnings Estimates - The upcoming EPS for NextEra Energy is projected at $0.56, indicating a 5.66% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $6.64 billion, representing a 23.26% increase from the same quarter last year [2] - For the entire fiscal year, earnings are estimated at $3.69 per share, reflecting a +7.58% change, while revenue is projected to remain flat at $27.75 billion [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for NextEra Energy indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system currently rates NextEra Energy at 2 (Buy), with a historical average annual gain of +25% for 1 rated stocks since 1988 [6] Group 4: Valuation Metrics - NextEra Energy has a Forward P/E ratio of 20.29, which is higher than the industry average of 17.07, suggesting it is trading at a premium [7] - The company has a PEG ratio of 2.51, which aligns with the industry average, indicating a balance between price and projected earnings growth [8] Group 5: Industry Context - The Utility - Electric Power industry, to which NextEra Energy belongs, ranks in the top 27% of all industries, with a Zacks Industry Rank of 64 [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [9]