NextEra Energy (NYSE:NEE) scaled a new 52-week high of $150.18 during yesterday’s trading session before closing a tad lower at $149.98. The stock has delivered a one-year return of about 22.7% compared with industry’s gain of 8.3%.
In the past 52 weeks, NextEra Energy’s share price has ranged from a low of $110.49 to a high of $150.18. Average volume of shares traded in the last three months is approximately 1.8 million.
Why an Upward Trend?
NextEra Energy’s shares have been on the rise following strong second-quarter 2017 results on Jul 26. The company posted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.
The company has been a consistent performer having delivered positive earnings surprises in three of the trailing four quarters with an average surprise of 4.28%. The long-term earnings growth of the company is presently pegged at 7.40%.
NextEra Energy’s subsidiary, Florida Power & Light Company (FPL), continues to increase its customer base, having added 64,000 more customers in the second quarter over the comparable year-ago period figure. Further, it stands to gain from positive economic factors, which will help it achieve the targeted compound annual earnings growth rate of 6-8% through 2020 from a 2016-base.
The company continues to benefit from favorable economic conditions in its service territories, with increased demand for utility services. Its focus on clean energy in the past few months has lowered emission levels drastically and saved on energy bills for its customers. This was backed by continuous shutting down of coal fired power plants and adding a natural gas fueled plant to lower carbon footprints.
With the onset of the third quarter, construction is underway on eight 74.5-megawatt (MW) solar energy centers across FPL's service territory. By persistent implementation of major capital initiatives as this, FPL has grown its regulatory capital employed over 10% since last year's second-quarter.
NextEra Energy currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors can consider better-ranked stocks from the same industry carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NiSource, Inc (NYSE:NI) posted second-quarter 2017 earnings from continuing operations of 10 cents per share, in line with the Zacks Consensus Estimate. The company’s 2017 estimates increased by 1 cent to $1.19 per share in the last 90 days.
CenterPoint Energy, Inc. (NYSE:CNP) posted second-quarter 2017 earnings from operations of 29 cents per share, beating the Zacks Consensus Estimate of 21 cents per share by 38.10%. The company’s 2017 estimates increased by 2 cents to $1.31 per share in the last 90 days.
Ameren Corporation (NYSE:AEE) posted second-quarter 2017 earnings from operations of 79 cents per share, beating the Zacks Consensus Estimate of 69 cents per share by 14.49%. The company’s 2017 estimates increased by 3 cents to $2.80 per share in the last 90 days.
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Ameren Corporation (AEE): Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
NiSource, Inc (NI): Free Stock Analysis Report
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