Juno Beach, Florida-based NextEra Energy, Inc. (NEE) generates, transmits, distributes, and sells electric power to its retail and wholesale customers and operates multiple commercial nuclear power units. Valued at $161.2 billion by market cap, the leading clean energy company generates electricity through wind, solar, and natural gas projects. The company owns Florida Power & Light Company, America’s largest electric utility company that sells more power than any other utility, providing electricity to approximately 5.9 million customer accounts or more than 12 million people across Florida.
Shares of this energy giant have slightly underperformed the broader market over the past year. NEE has gained 32.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.7%. However, in 2024, NEE stock is up 29.5%, surpassing the SPX’s 21.2% rise on a YTD basis.
Narrowing the focus, NEE’s outperformance is apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 26.7% over the past year. Moreover, NEE’s returns on a YTD basis outshine the ETF’s 23.7% returns over the same time frame.
On Oct. 23, NEE shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.03 surpassed Wall Street expectations of $0.98. The company’s revenue was $7.6 billion, failing to meet Wall Street forecasts of $8.5 billion. NEE expects full-year adjusted EPS to be between $3.23 and $3.43.
For the current fiscal year, ending in December, analysts expect NEE’s EPS to grow 7.6% to $3.41 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering NEE stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with one analyst suggesting a “Moderate Buy.”
On Oct. 28, RBC Capital analyst Shelby Tucker maintained a “Buy” rating on NEE with a price target of $94, implying a potential upside of 19.5% from current levels.
The mean price target of $88.74 represents a 12.8% premium to NEE’s current price levels. The Street-high price target of $102 suggests an upside potential of 29.7%.
On the date of publication, Neha Panjwani 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.
