Juno Beach, Florida-based NextEra Energy, Inc. (NEE), a Fortune 200 powerhouse, is revolutionizing energy through its commitment to sustainability and innovation. As America’s largest electric utility, it serves over 12 million people through Florida Power & Light Company. Its competitive arm, NextEra Energy Resources, leads the world in renewable energy generation from wind and solar while advancing battery storage technology. With seven commercial nuclear power units across three states, NextEra Energy exemplifies a forward-looking approach to clean, reliable, and affordable energy delivery.
Companies exceeding $10 billion in valuation earn the "large-cap" designation, and NextEra Energy, boasting a stellar $156.8 billion market cap, sits firmly in the elite league. The company's ambitious $59.1 billion investment plan from 2024 to 2028 underscores its strategy to modernize infrastructure and expand renewable energy operations. As global demand for clean energy intensifies, NextEra's financial resilience and dominance in renewables position it as a premier contender for investors pursuing enduring growth in the utility arena.
NextEra Energy is currently trading 12% below its 52-week high of $86.10, reached on Oct. 3. NEE dipped 6.6% over the three months, significantly underperforming the broader Nasdaq Composite’s ($NASX) 15.5% gain during the same time frame.
On the contrary, although NEE stock has climbed 29.1% over the past 52 weeks, it still underperformed NASX’s 39.1% returns over the past year.
To confirm the mixed price trend, NEE has traded below its 50-day moving average since late October but above the 200-day moving average since April.
NextEra Energy has kept investors optimistic, with its stock in the green over the past year, driven by robust performance and a clear growth strategy. Although it dipped recently and underperformed the Nasdaq Composite, its impressive returns in 2024 still reflect confidence in the company’s future. The Department of Energy projects a 15% to 20% rise in U.S. power demand over the next decade, and NextEra stands at the forefront of meeting this need, being the largest U.S. utility and the global leader in wind, solar, and battery storage.
NextEra’s $100 billion investment plan through 2027 to double its renewables and storage capacity positions the company for continued growth. The potential annual EPS and dividend growth speak to its strong fundamentals. The Q3 results on Oct. 23 - surpassing EPS expectations despite falling short on revenue - prove the company's resilience.
NextEra’s competitor, Duke Energy Corporation (DUK), has underperformed NEE with 22.2% gains over the past 52 weeks.
NextEra’s performance has Wall Street analysts cautiously optimistic about the stock's outlook. The stock has a consensus rating of “Moderate Buy” from 20 analysts in coverage, and the mean price target of $87.84 suggests an upside potential of 16% from the current price levels.
