NextEra Energy (NYSE:NEE), a major player in the energy sector, has experienced a significant decline in its share prices this week, with a drop of over 20% as noted by InvestingPro's real-time metrics. This comes in the wake of a decision by its subsidiary, NextEra Energy Partners, to cut its dividend growth rate due to rising interest rates.
The strategic realignment of NextEra Energy Partners now sees it moving in line with Brookfield Renewable and Clearway Energy (NYSE:CWENa), with a focus on organic growth projects. This shift was highlighted by CEO John Ketchum, who also noted the sale of Florida City Gas to Chesapeake Utilities (NYSE:CPK) Corporation as part of a new capital recycling approach.
NextEra's valuation is still trailing behind that of Southern Company (NYSE:SO), signaling potential investment opportunities. The company is projecting earnings-per-share growth and offers a substantial dividend yield compared to the S&P 500. According to InvestingPro, the company's P/E ratio stands at 12.62, and its adjusted market cap is $107.24B. The company's revenue growth has been accelerating, as evidenced by a 54.09% increase in the last twelve months (LTM2023.Q2) and a quarterly growth of 41.79% in FY2023.Q2.
InvestingPro Tips also highlight that NextEra has consistently increased its earnings per share and has raised its dividend for 27 consecutive years. It's also worth noting that despite the recent downturn, analysts still anticipate sales growth for the company this year.
InvestingPro Tips remind investors that the stock is currently in the oversold territory, which could signal a potential buying opportunity.
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