No. 1 in the electric and gas utility industry
NextEra Energy’s date of posting quarterly earnings reports is almost here. What investors could expect?
NextEra Energy (NEE) traded the Wednesday, December 24 at $240.51. The most recent price rose for 0.72% from the previous trading day. On the same day the S&P 500’s 0.02% loss, while the Dow lost 0.13%, but Nasdaq scored an increase of 0.08%.
NEE is approaching its next quarterly earnings report. The analysts expect NextEra Energy to post earnings of $1.53 per share. That would represent the growth of 2.68% in comparison to the prior year. Also, there is an expected revenue of $4.69 billion or 6.77% more than in the same period last year.
Speaking about the whole year, analysts’ expectation is earnings of $8.37 per share (an increase of 8.7% compared to the last year) and revenue of $19.27 billion (an increase of 15.09% compared to last year).
The beginning of NextEra Energy
Long-time ago, it was 2001, NextEra Energy’s market value was $10 billion, today it is $117 billion. The company is, in other words, the largest publicly traded utility in the world.
The company has large cash flow thanks to onshore wind-power infrastructure in promising areas, low-cost production and, also, the federal support.
NEE is a good dividend stock too, that paid out $2.1 billion in common stock dividends last year. The current dividend yield is 2.1%. NextEra generates cash flow from a power generation subsidiary NextEra Energy Resources (one of the biggest producers of electricity from the wind and sun) and two Florida utilities.
NEE stock
Currently, the stock’s P/E ratio is 28.53, while the average P/E ratio for the industry is 20.45.
The data shows that the stock price has been in an uptrend for the past 12 months. NextEra Energy stock price has a rising tendency. So we can conclude, the future price of NEE easily could hit $390 which means to increase for more than 28% at the end of the next 12 months period. NextEra Energy stock is a good long-term investment. The experts’ recommendation is to HOLD this stock since the further rise is expected.
But for the short-term traders, this is a good opportunity to sell, because the stock is in the upper part of a weak growing trend so it can be expected the move back towards the lower part of the trend. If the stock passes the level of $242.93 it will be the sign of a strong raising rate. The stock could hit this price in the next 3 months or less, and rise further up to near $250 over the next 3 months.
The company’s ABOUT
NextEra Energy’s headquarters is composed of five buildings in Juno Beach, Florida. It is a leading clean energy company and is the largest rate-regulated electric utility in the US by retail electricity produced and sold.
The center of NextEra Energy’s business is Florida Power & Light. This utility serves about five million customers. It is also the low-cost provider of electricity. The average customer cost is under $100 per month, which is lower than the average of $140.
Recently the company announced that will start the new year with the lower customer bills. The monthly bill for a typical 1,000-kWh residential customer will decrease by nearly $4 due to lower operating costs. That will be about 30% below the national average.
NextEra Energy also owns NextEra Energy Resources, LLC, which is the world’s largest generator of renewable energy and also a global leader in battery storage. The company produces electricity from eight nuclear power units in Florida, New Hampshire, Iowa, and Wisconsin. NextEra Energy is rated as No. 1 in the electric and gas utility industry on Fortune’s 2019 list of “World’s Most Admired Companies”. Also, last year it was rated among the top 25 on Fortune’s list of businesses that “Change the World.”
