NextEra Energy, Inc. (NEE), headquartered in Juno Beach, Florida, is a leading clean energy company. The company owns Florida Power & Light Company, America’s largest electric utility that provides electricity to approximately 5.9 million customers, or more than 12 million people across Florida. Valued at $154.89 billion by market cap, the company’s clean energy business, NextEra Energy Resources, LLC, is the world’s largest renewable energy generator, harnessing wind and solar power. It is also a world leader in battery storage. NEE also generates electricity from seven commercial nuclear power units in Florida, New Hampshire, and Wisconsin.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and NEE fits right into that category. With its presence across 49 states and four Canadian provinces, NEE actively invests in clean energy throughout North America.
The utility giant has fallen 6.3% from its 52-week high of $80.47, which it hit on May 31. Shares of NEE are up 34% over the past three months, outperforming the S&P 500 Utilities Sector SPDR’s (XLU) 10% gains over the same time frame.
Longer term, NEE shares rose 3.3% over the past year, and in 2024, the stock is up 24.1%. By contrast, the XLU is up 10.4% on a YTD basis and 5.2% over the past 52 weeks.
To confirm the bullish price trend, NEE has been trading above its 50-day moving average since early March and above its 200-day moving average since mid-April.
NEE’s recent outperformance can be attributed to its solid Q1 results and optimistic future outlook. The company’s net income and adjusted EPS were $2.27 billion and $0.91, respectively. Revenue stood at $5.73 billion. Meanwhile, the company expects full-year earnings between $3.23 and $3.43 per share. The company has guided earnings growth between 6% and 8% annually through 2026. It also expects dividends to grow by 10% per year through 2026.
However, rival Duke Energy Corporation (DUK) has outperformed NEE with 12.1% gains over the past 52 weeks. However, DUK’s 5.8% returns on a YTD basis have underperformed NEE’s gains over this period.
With its recent outperformance compared to other utility stocks, analysts remain optimistic about NEE’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, but the mean price target of $72.62 is a 3.7% discount to current levels.
On the date of publication, Dipanjan Banchur 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.
