Latest news with #NEE
Globe and Mail
2 days ago
- Business
- Globe and Mail
NEE Stock Trades at a Premium Valuation to Its Industry: How to Play?
NextEra Energy 's NEE shares are trading at a premium compared to the Zacks Utility - Electric Power industry. Its price-to-earnings F12M 18.86X is higher than the industry average of 15.27X and the broader Zacks Utilities sector's average of 16.15X. The company benefits from its well-chalked-out investment plan to strengthen its operations, strategic acquisitions, rising customer base and improvement in the economic condition in its service regions. NEE's Price Performance The increase in NextEra Energy's share prices is a reflection of the strong performance of the company, its focus on emission reduction and customer growth. Price Performance (Two Months) Should you consider adding NEE to your portfolio only based on positive price movements? Let's delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio. Factors Contributing Toward Strong Performance Florida's improving economic conditions are driving population growth and energy demand, allowing NEE to expand its customer base. Its subsidiary, Florida Power & Light Company (FPL), offers residential electricity rates well below the national average, enhancing customer appeal and market positioning. Nearly 89% of NextEra Energy's customer base consists of residential users, with the remaining 11% being commercial. The company's unmatched scale, technological edge and operational expertise enable it to deliver consistent, superior returns. Its extensive operations and expanding renewable energy portfolio provide strong competitive advantages. NextEra Energy Resources continues to make significant long-term investments in clean energy. Between 2024 and 2027, the company plans to add 36.5-46.5 GW of new renewable capacity. In Q1 2025 alone, it added 3.2 GW of renewable projects, growing its contracted renewables backlog to nearly 28 GW. Over the past decade, technological advances have driven down the cost of renewable energy, allowing NEE to sidestep fossil fuel market volatility and secure long-term power purchase agreements. These agreements provide stable and predictable cash flows. Additionally, investments in advanced battery storage systems enhance grid reliability and open new revenue streams. NextEra Energy also benefits from one of the lowest cost structures in the utility sector, supported by operational efficiencies, economies of scale in renewables, and strategically located assets. These factors underpin strong profit margins and reinforce the company's competitive edge. NEE's capital investment strategy is focused on long-term, consistent revenues and superior returns. The company intends to invest more than $72.6 billion through 2029 to strengthen its operations further. NEE's Earnings Surprise Thanks to efficient plan execution and strategic capital investments, NextEra Energy exceeded earnings per share expectations in the first quarter of 2025. Impressively, the company has outperformed earnings estimates for four consecutive quarters, delivering an average earnings surprise of 3.58%. Another operator in the utility space, Duke Energy Corporation DUK, reported earnings surprise in three out of the past four reported quarters and lagged once, resulting in an average earnings surprise of 6.07%. NextEra Energy's Earnings Estimates Moving Up The company expects its 2025 earnings per share in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE's 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.95%, respectively. It expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level. The Zacks Consensus Estimate for Duke Energy's 2025 and 2026 earnings per share reflects a year-over-year growth of 7.12% and 6.10%, respectively. NEE Stock Returns Better Than Its Industry NextEra Energy's trailing 12-month return on equity (ROE) is 12.06%, ahead of the industry average of 10.13%. ROE is a financial ratio that measures how well a company uses its shareholders' equity to generate profits. The current ROE of the company indicates that it is using shareholders' funds more efficiently than its peers. Another prominent utility, The Southern Company SO, produces a large volume of clean electricity, like NextEra Energy. The Southern Company's ROE is better than its industry at 12.7%. NextEra Energy Raises Value of Shareholders NEE plans to increase the dividend rate annually by 10%, at least through 2026, from the 2024 base, subject to its board's approval. The current annual dividend of the company is $2.27 per share, and the dividend yield of 3.03% is better than the Zacks S&P 500 Composite's yield of 1.58%. Check NEE's dividend history here. The Southern Company's current annual dividend is $2.96 per share, reflecting a dividend yield of 3.28%. Southern Company's management raised its dividend five times in the past five years. Rounding Up NextEra Energy maintains steady performance, supported by growing demand for clean energy across its service areas. The company's broad U.S. presence, operational efficiency, economies of scale in renewables, and strategically positioned projects continue to drive and enhance its overall results. Despite its premium valuation, investors can retain this Zacks Rank #3 (Hold) utility in their portfolio, given its stable ROE, rising earnings estimates and regular dividend payment capabilities. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Southern Company (The) (SO): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
UBS Maintains Buy Rating on NextEra Energy (NEE)
NextEra Energy, Inc. (NYSE:NEE) is included among the Best Nuclear Energy Stocks to Buy Right Now. It was recently announced that UBS analyst Daniel Ford has maintained a 'Buy' rating on NEE, keeping its price target of $84. A wind turbine, its blades spinning to generate clean renewable energy. The assessment comes after the recent developments in the Florida rate case, where the Office of Public Counsel (OPC) suggested a lower than expected 9.2% ROE but agreed with NextEra Energy's equity ratio. However, the analyst expects a more favorable final verdict than the OPC's recommendation and anticipates the upcoming Florida Public Service Commission's Staff recommendation on June 17 to clarify the potential outcomes of the rate case. NextEra Energy, Inc. (NYSE:NEE) is also a great dividend stock, having grown its payouts roughly at a CAGR of 10% over the last twenty years. The company aims to maintain this momentum, with plans to increase its payout by roughly 10% annually through at least 2026. NextEra Energy, Inc. (NYSE:NEE) is the world's largest generator of renewable energy from the wind and sun and a global leader in battery storage. Moreover, through its subsidiaries, NEE generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire, and Wisconsin. While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
12-06-2025
- Business
- Reuters
NextEra workers net $45 million from sales of company stock
June 12 (Reuters) - NextEra Energy (NEE.N), opens new tab employees realized $45 million in gains from selling company stock in their retirement plan during 2024, reversing heavy losses from the previous two years, the utility disclosed on Thursday. America's largest renewable power company is among several U.S. energy and utility companies that continue to promote big, concentrated bets on company stock in worker retirement plans. The strategy is largely out of favor among U.S. companies, which mostly have diversified their retirement portfolios to avoid heavy losses tied to one investment, according to research by Vanguard Group. NextEra shares accounted for $1.8 billion, or about one-third of the $5.4 billion in total investments in the company's retirement savings plan, the company disclosed in an annual report filed with the U.S. Securities and Exchange Commission. In 2024, NextEra employees realized gains because the company's total return that year was 21.5%. But in 2023, employees took heavy losses from their stock sales. They realized losses of nearly $162 million that year, NextEra SEC disclosures show. Realized losses from employee stock sales totaled $65.5 million in 2022. NextEra was not immediately available for comment.
Yahoo
30-05-2025
- Business
- Yahoo
Why NextEra Energy (NEE) Fell This Week
The share price of NextEra Energy, Inc. (NYSE:NEE) fell by 8.56% between May 20 and May 27, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development. A wind turbine, its blades spinning to generate clean renewable energy. NextEra Energy, Inc. (NYSE:NEE) is the world's largest generator of renewable energy from the wind and sun and a global leader in battery storage. President Trump's sweeping tax and spending bill, intended to end Biden-era tax credits for clean energy projects years sooner than planned, poses a threat to NextEra Energy, Inc. (NYSE:NEE)'s operations as it is also the Florida Power & Light Company – America's largest electric utility which benefits greatly from Florida's famous sunshine and growing population. However, on the plus side, NEE has positioned itself well during the ongoing global trade war by shifting its tariff exposure to suppliers and contracting with domestic battery manufacturers. While we acknowledge the potential of NEE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NEE and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Why NextEra Energy (NEE) Fell This Week
The share price of NextEra Energy, Inc. (NYSE:NEE) fell by 8.56% between May 20 and May 27, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development. A wind turbine, its blades spinning to generate clean renewable energy. NextEra Energy, Inc. (NYSE:NEE) is the world's largest generator of renewable energy from the wind and sun and a global leader in battery storage. President Trump's sweeping tax and spending bill, intended to end Biden-era tax credits for clean energy projects years sooner than planned, poses a threat to NextEra Energy, Inc. (NYSE:NEE)'s operations as it is also the Florida Power & Light Company – America's largest electric utility which benefits greatly from Florida's famous sunshine and growing population. However, on the plus side, NEE has positioned itself well during the ongoing global trade war by shifting its tariff exposure to suppliers and contracting with domestic battery manufacturers. While we acknowledge the potential of NEE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NEE and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None. Sign in to access your portfolio
