Latest news with #NextEraEnergy
Yahoo
a day ago
- Business
- Yahoo
NextEra Energy price target lowered to $94 from $95 at Morgan Stanley
Morgan Stanley lowered the firm's price target on NextEra Energy (NEE) to $94 from $95 and keeps an Overweight rating on the shares. The firm is updating its price targets for stocks in the Regulated & Diversified Utilities / IPPs North America sector, noting utilities underperformed the S&P in May, the analyst tells investors. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on NEE: Disclaimer & DisclosureReport an Issue Sunrun to trade toward 'bear case' if SenFin language holds, says Morgan Stanley NextEra Energy Sells Debentures to Strengthen Capital CVX, BP, SHEL: Global Energy Investments to Hit Record $3.3 Trillion in 2025 Trump Trade: U.S. President says China getting 10% tariffs in 'done' deal Trump set to scrap Biden-era power-plant pollution curbs, Bloomberg says
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
2 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
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
Forbes
4 days ago
- Business
- Forbes
Florida Power & Light's Proposed Rate Hike May Raise Electricity Bills
When Florida Power & Light requested a nearly $9 billion rate increase over four years, it landed with a thud—threatening to add even more financial strain to already burdened Florida households, many of whom have seen bills rise by 20% in the last five years. However, the utility's PR machine has kicked into high gear to explain its position: it must fund grid modernization, clean energy expansion, and infrastructure upgrades. There's no question FP&L must modernize its grid and expand its clean energy portfolio. But affordability matters. Regulators must find a middle ground—approving some rate increases while capping excessive profits, mandating transparency, and requiring support for vulnerable customers. 'There's no reason we should have the highest return on equity in the nation. It's a tax increase on Floridians because you don't have a choice but to pay your electric bill. We should not have some of the highest electricity bills in the nation,' because consumers run their air conditioners much of the year, says Bradley Marshall, senior attorney with Earthjustice, in a virtual conversation. In February, FP&L—the wholly owned subsidiary of NextEra Energy—asked the Florida Public Service Commission to grant it a $8.961 billion rate hike from January 1, 2026, to December 31, 2029. A household using the average 1,200 kilowatt-hours per month would see its monthly bill rise, initially, by $10 in 2026—a number that would continue growing through 2029. Zane Smith, senior director for the AARP in Florida, told me that escalating energy bills force seniors into a cruel dilemma: choosing between running their air conditioners and filling prescriptions or buying groceries. Many are on a fixed income, unable to pay higher energy bills—something that could lead to heat-related illnesses or even death. Part of the problem is that the utility seeks an 11.9% return on equity, notably higher than the national industry average of 9.6%. The company argues that this ensures financial stability and attracts investors. However, Florida residents have already seen their electric bills rise by 20% over the last five years. Indeed, some analysts argue that FP&L's rate request is more about improving shareholder value than servicing the state's electricity customers. 'This massive rate increase is not because of investments in renewable energy, but because of FP&L's continued need to increase the return on equity for their shareholders,' says Brooke Ward, senior Florida organizer for Food and Water Watch, in a chat. 'It's also because hundreds of millions of dollars are invested in fossil fuels. When we look at our moderate-income families in urban areas, a quarter of those currently have an energy burden of 12% or more, which means they are in energy poverty.' That's why the Florida Public Service Commission is in the eye of the storm. The commission, though, has a track record of greenlighting steep rate hikes, raising concerns about the public's interest. Consider: the Florida Supreme Court previously questioned the commission's approval of a $4.8 billion rate increase in 2021, suggesting that regulatory oversight might be lacking. Specifically, Florida Supreme Court Justice Carlos Muñiz lambasted the public service commission, saying it lacked transparency and didn't adequately justify why it granted the last hike—after the commission's staff advised against it. 'The PSC is a black box,' he told the Florida press. 'It's supposed to be the opposite of a black box.' 'The Florida Public Service Commission is really captive to the utilities,' which are significant participants in the state's political arena, making huge donations to elected officials and sponsoring charitable events, adds Susan Glickman, vice president of policy with the Clio Institute, in a talk with me. Utilities must prioritize investing in critical projects that benefit the public. FP&L must deliver reliable, affordable electricity—even as it faces mounting challenges from climate extremes and population growth. That's where grid modernization comes in: a smart grid can reroute power during congestion and prevent outages before they happen. To that end, the utility claims its distribution reliability is 59% better than the national average. It also stated that its investments in technology enabled it to prevent 2.7 million customer outages in 2024, when Hurricanes Debby, Helene, and Milton struck. This track record has been achieved as it has added 275,000 customers since 2021 and is set to add 335,000 more through 2029. According to the U.S. Energy Information Administration, natural gas accounts for 73% of the utility generation mix, nuclear for 11%, and solar for 14%. 'First, customers don't open up an ROE; they open up an electricity bill, which is expected to remain well below the national average even with the proposed increase. Ultimately, ROE is about our ability to obtain capital to continue making smart investments on behalf of customers,'Andrew Sutton, spokesperson for FP&L, told me. 'Planning for the future and investing in the grid now actually reduces cost over time for everyone,' FP&L's CEO Armando Pimentel, added, on FP&Ls site. FP&L's rate request is a tricky balancing act—at the intersection of grid modernization, shareholder returns, and customers' bills. It is known for being reliable, but it still heavily depends on fossil fuels. The utility's nearly $9 billion rate hike request is, therefore, a tough sell—especially with such a high return on equity. While investment and upgrades are necessary, the company shoots for the moon. Regulators should pare back the return, require cost transparency, and ensure low-income protection. The overarching goal is to support a resilient grid without overburdening Floridians.
