Topics

Posted 10/3/2023, 1:02:21 AM

Analysts See Value in Beaten-Down NextEra Energy Stock Despite Recent Sell-Off

NextEra Energy stock has fallen recently, but the author believes the market is overreacting and sees value in NEE at current prices.
Some traders are rotating out of utilities stocks into bonds, money markets, and CDs due to rising interest rates. This is creating an opportunity in beaten-down utilities stocks.
One analyst downgraded NEE citing concerns about reduced dividend growth guidance, but another sees the sell-off as overdone given limited financial impact.
NEE has a trailing P/E of 14.1x vs the sector median of 17.6x, pays a 3.2% dividend yield, and analysts remain largely bullish.
The author sees NEE as a contrarian buy here, believing pessimism is priced in and the stock offers good value and dividend yield.

tipranks.com

Relevant topic timeline:

9/24/2023

Tesla Stock Drops Over 11% on Interest Rate Fears Despite Long-Term Growth Potential

The recent decline in Tesla stock due to concerns about vehicle demand in a high interest rate environment may actually present a buying opportunity for long-term investors, as Tesla's long-term growth catalysts such as the transition to electric cars and increasing demand for energy storage products remain strong.

9/27/2023

NextEra Energy Partners Cuts Distribution Growth Outlook Due to Higher Rates, Transitions to Renewables

NextEra Energy Partners (NEP) has reduced its growth outlook and adjusted its distribution growth rates in response to tighter monetary policy and higher interest rates, focusing instead on higher-yield opportunities such as repowering wind assets and acquiring renewable projects.

9/27/2023

NextEra Energy Partners Lowers Growth Outlook Due to Higher Interest Rates

NextEra Energy Partners' stock tumbles after lowering expectations for limited partner distribution growth due to higher interest rates and tighter monetary policy.

9/27/2023

NextEra Energy Slashes Distribution Growth Outlook in Half, Blames Tighter Fed Policy

NextEra Energy subsidiary, NextEra Energy Partners, has cut its distribution growth outlook in half due to Federal Reserve monetary policy tightening and higher interest rates, resulting in a significant drop in stock performance.

9/28/2023

Analysts Downgrade NextEra Energy, Raytheon Technologies; Cut Targets for Terex, South State

NextEra Energy Partners received two downgrades after revising its growth expectations, leading to a drop of over 20% in share value, with JPMorgan downgrading to Neutral and Oppenheimer downgrading to Perform.

9/28/2023

NextEra Energy Trims Growth View for NextEra Energy Partners, But Reaffirms Broader Outlook

NextEra Energy has maintained its fair value estimate of $82 per share, despite the company's lower long-term growth rate assumptions for NextEra Energy Partners, which is viewed as achievable and not vital to NextEra's ability to finance its capital investment plan.

9/29/2023

NextEra Energy Stock Rises as Earnings Growth Expected to Continue

NextEra Energy closed slightly higher in the latest trading session, outperforming the S&P 500, and is expected to release positive earnings with year-over-year growth in both earnings and revenue.

10/3/2023

NextEra Energy Shares Drop Despite Analyst Buy Calls; Technical Charts Point to Further Downside

Shares of NextEra Energy (NEE) have been downgraded by TheStreet's Quant Ratings service, with charts suggesting further decline and a potential price target in the $45 area.

10/17/2023

Lithium, Utilities, and Tesla: 3 Stocks That Could Outperform the S&P 500

Summary: Albemarle, NextEra Energy, and Tesla are three stocks that have the potential to outperform the S&P 500 due to factors such as strong demand for lithium, attractive valuation, dividend yield, and long-term growth opportunities in the electric vehicle, renewable energy, and artificial intelligence sectors.

10/24/2023

NextEra Beats Q3 Estimates on Renewables and Utilities Growth

NextEra Energy surpasses Wall Street expectations in Q3 profit thanks to higher retail sales and renewable energy projects, and aims to achieve strong financial results through 2026.

Topics

Posted 10/3/2023, 1:02:21 AM

Analysts See Value in Beaten-Down NextEra Energy Stock Despite Recent Sell-Off

NextEra Energy stock has fallen recently, but the author believes the market is overreacting and sees value in NEE at current prices.
Some traders are rotating out of utilities stocks into bonds, money markets, and CDs due to rising interest rates. This is creating an opportunity in beaten-down utilities stocks.
One analyst downgraded NEE citing concerns about reduced dividend growth guidance, but another sees the sell-off as overdone given limited financial impact.
NEE has a trailing P/E of 14.1x vs the sector median of 17.6x, pays a 3.2% dividend yield, and analysts remain largely bullish.
The author sees NEE as a contrarian buy here, believing pessimism is priced in and the stock offers good value and dividend yield.

tipranks.com

Relevant topic timeline:

9/24/2023

Tesla Stock Drops Over 11% on Interest Rate Fears Despite Long-Term Growth Potential

9/27/2023

NextEra Energy Partners Cuts Distribution Growth Outlook Due to Higher Rates, Transitions to Renewables

9/27/2023

NextEra Energy Partners Lowers Growth Outlook Due to Higher Interest Rates

NextEra Energy Partners' stock tumbles after lowering expectations for limited partner distribution growth due to higher interest rates and tighter monetary policy.

9/27/2023

NextEra Energy Slashes Distribution Growth Outlook in Half, Blames Tighter Fed Policy

9/28/2023

Analysts Downgrade NextEra Energy, Raytheon Technologies; Cut Targets for Terex, South State

9/28/2023

NextEra Energy Trims Growth View for NextEra Energy Partners, But Reaffirms Broader Outlook

9/29/2023

NextEra Energy Stock Rises as Earnings Growth Expected to Continue

NextEra Energy closed slightly higher in the latest trading session, outperforming the S&P 500, and is expected to release positive earnings with year-over-year growth in both earnings and revenue.

10/3/2023

NextEra Energy Shares Drop Despite Analyst Buy Calls; Technical Charts Point to Further Downside

Shares of NextEra Energy (NEE) have been downgraded by TheStreet's Quant Ratings service, with charts suggesting further decline and a potential price target in the $45 area.

10/17/2023

Lithium, Utilities, and Tesla: 3 Stocks That Could Outperform the S&P 500

10/24/2023

NextEra Beats Q3 Estimates on Renewables and Utilities Growth

NextEra Energy surpasses Wall Street expectations in Q3 profit thanks to higher retail sales and renewable energy projects, and aims to achieve strong financial results through 2026.