NextEra Energy’s Performance Shines Amid Market Trends
Juno Beach, Florida-based NextEra Energy, Inc. (NEE) is a dominant player in the electric power industry. The company engages in generating, transmitting, distributing, and selling electricity while also running multiple nuclear power plants. With a market cap of $161.2 billion, it stands as a leading clean energy firm, producing power from wind, solar, and natural gas. NextEra owns Florida Power & Light Company, the largest electric utility in America, which serves around 5.9 million customer accounts, translating to over 12 million residents across Florida.
Stock Performance: A Mixed Bag Over the Last Year
When examining stock performance, shares of NextEra Energy have slightly lagged behind the broader market in the past year. NEE has increased by 32.5%, while the S&P 500 Index ($SPX) has achieved a nearly identical gain of 32.7%. However, in 2024, NEE stock has seen a notable rise of 29.5%, outperforming the SPX’s 21.2% increase to date.
Utilities Sector Comparison
Focusing on more specific benchmarks, it’s clear that NEE outperformed the Utilities Select Sector SPDR Fund (XLU), which only saw a 26.7% increase in the past year. Furthermore, NEE’s year-to-date returns are better than the ETF’s 23.7% gains for the same period.
Q3 Results Show Positive Earnings
On October 23, NEE shares ended the day more than 1% higher following the release of its Q3 earnings. The company’s adjusted earnings per share (EPS) was $1.03, exceeding Wall Street’s expectations of $0.98. However, revenue reached $7.6 billion, falling short of predictions that forecasted $8.5 billion. Looking forward, NEE estimates that its adjusted EPS for the full year will fall between $3.23 and $3.43.
Analyst Expectations for Growth
For the current fiscal year, which concludes in December, analysts predict a 7.6% increase in NEE’s EPS, estimating it at $3.41 on a diluted basis. Impressive is the company’s history of earnings surprises, having exceeded consensus estimates in each of the last four quarters.
Analyst Ratings: A Moderate Buy Consensus
Among the 20 analysts tracking NEE stock, the consensus rating is a “Moderate Buy,” based on 11 “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.” This sentiment represents a slight downturn from previous months.
Price Targets Suggest Room for Growth
On October 28, RBC Capital analyst Shelby Tucker reaffirmed a “Buy” rating on NEE, setting a price target of $94, which indicates a potential gain of 19.5%. The average price target for the stock is $88.74, suggesting a 12.8% increase from its current levels, while the highest target of $102 shows a possible upside of 29.7%.
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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
