The energy sector has had a strong run this past year, including giant electricity generation company NextEra Energy . On Tuesday, the Relative Strength (RS) Rating for NextEra stock climbed nine points to 79, just below the 80 threshold that indicates a company may be ready for a fresh run higher.
The Juno Beach, Fla.-based company, which operates nationwide, also has some other outstanding numbers. Its 89 Earnings Per Share Rating puts it among the top 11% of companies for recent quarters and years profit growth. A Composite Rating of 87 is fairly bullish too. And it sports a B- Accumulation/Distribution Rating on an A+ to E scale with A+ the best. The B- rating shows that institutional investors like mutual funds and ETFs are fairly heavy buyers.
NextEra Stock Pattern This Year: Climb, Fall, Repeat
NextEra Energy, which bills itself on its website as the world's largest utility company, says it plans to spend $50 billion to $55 billion through the end of 2022 on new infrastructure, much of it focused on green energy. It also says it generates more wind and solar energy than any other company in the world
NextEra stock has been on a roller-coaster ride this year as the market has frequently flashed buy signals only to pull the rug out from under investors. At the end of December 2021 it hit an all-time high at 93.73. From there it fell to 67.22 in mid-May and started to recover. It climbed to a near-high 91.35 in late August and retrenched again. On Tuesday, NextEra stock rose about 0.6% to 87.06.
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NextEra Energy is working on a cup-without-handle base with a 91.45 entry. See if the stock can clear the breakout price in heavy trade.
Sales Popped 54% Last Quarter
Earnings grew 13% to 85 cents per share last quarter, down from 14% growth the prior quarter. Unlike many of its peers, its EPS grew every quarter of the past year. Revenue growth last quarter surged 54% year over year to $6.72 billion, up from 32% growth the prior quarter.
NextEra Energy holds the No. 3 rank among its peers in the Utility-Electric Power industry group. Argentina's Pampa Energia and AES are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
