Juno Beach, Florida-based NextEra Energy, Inc. (NEE) generates, transmits, distributes, and sells electric power and operates multiple commercial nuclear power units. Valued at $144.3 billion by market cap, the company generates electricity through wind, solar, and natural gas projects. NEE owns Florida Power & Light Company, America’s largest electric utility company that provides electricity to approximately 5.9 million customer accounts or more than 12 million people across Florida.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and NEE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regulated electric utilities industry. With a renewable energy portfolio of over 34 GW, NEE is a market leader in clean energy. The company is well-positioned to capitalize on the growing demand for renewables and is at the forefront of the transition to sustainable energy, aligning with global trends towards decarbonization.
Despite its notable strength, NEE slipped 16.8% from its 52-week high of $86.10, achieved on Oct. 3, 2024. Over the past three months, NEE stock declined 6.1%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3.4% losses during the same time frame.
In the longer term, shares of NEE dipped marginally on a YTD basis, underperforming DOWI’s YTD gains of 1.5%. However, the stock gained 29.7% over the past 52 weeks, outperforming DOWI’s 10.5% returns over the last year.
To confirm the bearish trend, NEE has been trading below its 200-day moving average since November 2024. However, the stock is trading above its 50-day moving average since mid-February, with slight fluctuations.
NEE has been outperforming due to its heavy investments in renewable energy capacity, which is expected to reach 75 gigawatts by 2027. The company has surpassed earnings expectations and continues to expand its renewables backlog. With a focus on smart capital investments and low customer bills, NEE's share prices have been increasing. The company benefits from the Fed's decision to lower interest rates and its unmatched scale and technology lead to superior returns. NEE plans to add more renewables to its portfolio in the coming years, further solidifying its position as a leader in clean energy.
On Jan. 24, NEE shares closed up more than 5% after reporting its Q4 results. Its adjusted EPS of $0.53 surpassed Wall Street expectations of $0.51. The company’s revenue was $5.4 billion, missing Wall Street forecasts of $6.5 billion. NEE expects full-year adjusted EPS in the range of $3.45 to $3.70.
In the competitive arena of regulated electric utilities, DTE Energy Company (DTE) has taken the lead over NEE, showing resilience with a 12% gain on a YTD basis. However, DTE lagged behind the stock with a 25.1% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on NEE’s prospects. The stock has a consensus “Moderate Buy” rating from the 20 analysts covering it, and the mean price target of $85 suggests a potential upside of 18.7% from current price levels.
