Split (1)

train · 12.3k rows

Date stringdate 2022-01-02 00:00:00 2023-12-16 00:00:00	Symbol stringclasses 46 values	Article stringlengths 344 79.8k
2023-12-16	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-16	NEE	The energy sector has had a down year in 2023. Rising interest rates and falling commodity prices weighed on the industry. While the S&P 500 has rallied more than 20% this year, energy stocks in that index are down by more than 3% on average. However, while last year was a down year for the energy sector, 2024 could be a bounce-back year. Because of that, energy stocks could deliver strong total returns. NextEra Energy (NYSE: NEE), Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), and Kinder Morgan (NYSE: KMI) stand out to a few Fool.com contributors as the best ones to buy heading into 2024. Here's why they think these energy stocks could put a charge in your portfolio next year. NextEra Energy is targeting 10% dividend growth Reuben Gregg Brewer (NextEra Energy): Looking at the energy sector from a broad perspective it includes boring utility stocks. But there's one utility stock that has proven it is anything but boring, at least on the dividend front, and that's NextEra Energy. This industry giant, with a market cap of $122 billion, has increased its dividend annually for 29 years and at a compound annual rate of 10% over the past decade. Those would be impressive stats for any company, let alone a utility. The key to NextEra's success is that it is really two companies in one. The foundation is NextEra's regulated utility operations, which largely consists of Florida Power & Light. This is a slow and steady performer benefiting from operating in a state that's seen steady population growth. Regulated assets have monopolies in the areas they serve but must get the rates they charge and their investment plans approved by the government. While this generally leads to slow growth, that growth is fairly dependable regardless of the market environment. On top of this slow and steady business, NextEra has built one of the world's largest clean energy companies. This business is expected to keep growing for years as the world shifts toward renewable power. To provide some scale to the opportunity, NextEra's renewable power business has 34 gigawatts of capacity today with plans to increase that by as much as 41 gigawatts by 2026. At this point, management expects to increase the dividend by 10% at least until 2024 with earnings growth of between 6% and 8% a year expected through at least 2026. Meanwhile, the dividend yield is historically high today at 3.1%, suggesting the stock is on sale. The power to continue growing in 2024 Neha Chamaria (Brookfield Renewable): Despite regaining some ground in recent weeks, shares of Brookfield Renewable have hugely underperformed the market in 2023. Rising interest rates are largely to blame as they can hinder plans for companies like Brookfield Renewable that bank on cheap debt to fund growth. The market's fears were exacerbated when Brookfield's peer NextEra Energy Partners slashed its growth targets in September, citing funding challenges in a high interest rate environment. Yet, Brookfield Renewable hasn't stopped growing, and the drop in the renewable energy stock's price makes it an enticing energy stock now. In the nine months that ended Sept. 30, Brookfield's funds from operations (FFO) grew 7.7% year over year. Management didn't mince words, stating that it wasn't pleased to see its share price fall. Management's outlook for the business, however, is better than ever, and it remains focused on long-term growth. It also sees plenty of opportunities to deploy capital at or above its target returns as demand for clean energy continues to rise even as several market participants find it harder to access capital amid high interest rates. In other words, Brookfield Renewable may not cut back on its growth spending in the near term, contrary to what the market fears. Driven primarily by its development pipeline and acquisitions, Brookfield Renewable grew its FFO per unit by 10% annually over the past decade and is targeting a similar 10% or more annual FFO growth rate through 2028. It also expects to increase its dividend by 5% to 9% annually, hoping to deliver 12% to 15% total returns to shareholders. With Brookfield Renewable shares yielding 5%, investors who buy the stock now can expect strong returns in the long term. There's lots of optionality heading into 2024 Matt DiLallo (Kinder Morgan): Kinder Morgan's energy infrastructure business generates very stable cash flow. The company gets two-thirds of its earnings from take-or-pay contracts and commodity-priced hedges, which lock in its cash flow. Meanwhile, another 26% is fee-based earnings with no commodity price exposure. That gives Kinder Morgan lots of visibility into its cash flow. The pipeline giant expects to produce about $5 billion, or $2.21 per share, of distributable cash flow next year. That's 5% above what it anticipates producing this year. That predictability gave Kinder Morgan the confidence to increase its already high-yielding dividend (recently 6.4%) by another 1.8% for next year, extending its streak to seven straight years of dividend growth. While its contracts lock in most of its cash flow, the company has lots of upside potential. Its current financial expectations don't include any impact from STX Midstream. The company recently agreed to buy the natural gas pipeline operation from NextEra Energy Partners in a $1.8 billion deal. It anticipates that the transaction will be accretive to its cash flow in 2024 and beyond. Meanwhile, it has a lot of financial flexibility even after completing that sizable transaction, which should close in the first quarter of next year. Kinder Morgan is currently on track to end 2024 with a 3.8 times leverage ratio, well below its 4.5 times target. While the company will use some of its financial capacity to close the STX Midstream deal, the transaction will only increase its leverage ratio by 0.1 times next year while being leverage-neutral over the long term. That gives Kinder Morgan lots of financial flexibility heading into 2024. It can opportunistically deploy that capacity on share repurchases, value-enhancing acquisitions like STX Midstream, and sanctioning additional high-return organic expansion projects. Future capital deployment could further boost its cash flow per share, giving Kinder Morgan more fuel to grow its dividend. Should you invest $1,000 in NextEra Energy right now? Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Renewable, Kinder Morgan, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	NEE	By Tim McLaughlin Dec 15 (Reuters) - Exxon Mobil’s income tax payments to the U.S. government have dropped to 3% over the past five years – several times below the company’s 20-year average – on massive deductions passed under former President Donald Trump. Corporate tax experts say Exxon could enjoy low taxes for several more years, at a time when the government needs more money to fund an ambitious fight against climate change. President Joe Biden’s minimum corporate tax is off to a shaky start and calculation of the 15% tax factors in the Trump accelerated depreciation deductions that Exxon used last year. That lowered its tax rate to a rock-bottom 2.5% on domestic profit of $28.3 billion, according to the "current federal income tax expense" Exxon disclosed in its annual report. “If you view the use of these tax breaks as a problem, Biden’s new minimum tax is unlikely to end that,” said Matt Gardner, a senior fellow at the nonpartisan Institute on Taxation of Economic Policy (ITEP) in Washington D.C. In sharp contrast, the most valuable companies representing major sectors of the U.S. economy paid an average tax rate on domestic profits at least seven times higher than Exxon, according to a Reuters analysis of the companies' latest annual financial reports. The group includes Apple, Meta Platforms, JPMorgan Chase, Sherwin-Williams and Union Pacific. Exxon’s recent tax advantage reveals how the U.S. tax code hinders the Biden administration’s push to be a world leader in limiting fossil fuels. The corporate minimum tax is the main source of revenue for the president’s green energy agenda in the 2022 Inflation Reduction Act. The Internal Revenue Service (IRS), however, has delayed a roll out of the tax, which has been roiled by complexity and confusion, said Will McBride, vice president of tax policy at the Tax Foundation, a pro-business think tank. “There is nothing in the (corporate minimum tax) to guarantee a 15% minimum rate,” McBride said. The White House declined to comment for this story, but a spokesperson pointed to Biden's public commitment to end "tens of billions of dollars of federal tax subsidies for oil and gas companies." Since 2003, Exxon’s current federal income tax expense – a proxy experts use to divine what companies pay on U.S. tax returns – averaged 17% for the 16 years the company generated a pre-tax profit from domestic operations, according to Exxon financial disclosures. But since Trump’s Tax Cuts and Jobs Act became law in 2017, Exxon’s rate has plummeted to less than 3% in the three years when the company’s domestic operations showed a profit, the disclosures show. Last year, for example, Exxon’s tax rate was 2.5%, or $696 million, on record pre-tax U.S. profit of $28.3 billion. Exxon would have paid nearly $6 billion at the federal statutory tax rate of 21%. Exxon said, however, its U.S. income tax liability for 2022 was "several billion dollars" and the highest amount paid in more than 10 years. The company declined to elaborate why that amount was so much higher than the current federal income tax expense figure it provided to investors. Before this year, Trump’s accelerated depreciation allowed companies to immediately deduct 100% of the billions of dollars many spend each year on property and equipment, up from 50% previously. The incentives, phased down to 80% this year, extend to all sectors of the economy, but they are amplified in the fossil fuel sector due to the capital-intensive nature of extracting oil and gas. Exxon capitalized on the deductions in 2022, for example, after spending $9.5 billion on U.S.-based capital and exploration projects, including in the Permian Basin oil and gas field and on a Beaumont, Texas refinery expansion, company financial disclosures show. “Sure enough, industry lobbyists are now back trying to get Congress to extend the tax break,” U.S. Senator Sheldon Whitehouse, a Rhode Island Democrat, told Reuters. Russ Hamilton, an accounting professor at Southern Methodist University’s Cox School of Business, said that under normal circumstances the cumulative tax benefit from accelerated depreciation is meant to zero out over time as annual capital investments slow. But if companies continue to spend money on large capital projects – like finding and developing new oil fields - payments on deferred income taxes can be postponed for years. “These deferred income tax liabilities can go on forever," said Donald Williamson, an accounting professor at American University’s Kogod School of Business. Exxon U.S. Income Tax: A 20-year history https://tmsnrt.rs/3RFH3nr (Reporting By Tim McLaughlin in Boston; Editing by Richard Valdmanis and David Gregorio) ((tim.mclaughlin@thomsonreuters.com; +1 617-620-3471; Reuters Messaging: Tim.McLaughlin.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	NEE	Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about NextEra Energy (NEE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. NextEra currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy. Of the 15 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 66.7% and 6.7% of all recommendations. Brokerage Recommendation Trends for NEE Check price target & stock forecast for NextEra here>>> The ABR suggests buying NextEra, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. ABR Should Not Be Confused With Zacks Rank In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Is NEE Worth Investing In? Looking at the earnings estimate revisions for NextEra, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.12. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for NextEra. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for NextEra. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-15	NEE	To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments. In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET NextEra Energy Inc (Symbol: NEE) $62.78 $71.57 14.00% Brown & Brown Inc (Symbol: BRO) $71.96 $78.00 8.39% Berkley Corp (Symbol: WRB) $71.17 $75.78 6.47% Automatic Data Processing Inc. (Symbol: ADP) $235.97 $250.57 6.19% Church & Dwight Co Inc (Symbol: CHD) $91.36 $96.20 5.30% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL NextEra Energy Inc (Symbol: NEE) 2.98% 14.00% 16.98% Brown & Brown Inc (Symbol: BRO) 0.72% 8.39% 9.11% Berkley Corp (Symbol: WRB) 0.62% 6.47% 7.09% Automatic Data Processing Inc. (Symbol: ADP) 2.37% 6.19% 8.56% Church & Dwight Co Inc (Symbol: CHD) 1.19% 5.30% 6.49% Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another. STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH NextEra Energy Inc (Symbol: NEE) $1.7 $1.872 10.12% Brown & Brown Inc (Symbol: BRO) $0.424 $0.475 12.03% Berkley Corp (Symbol: WRB) $0.786666666666667 $1.42 80.51% Automatic Data Processing Inc. (Symbol: ADP) $4.37 $5.15 17.85% Church & Dwight Co Inc (Symbol: CHD) $1.052 $1.092 3.80% These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ADP — FREE Get the latest Zacks research report on CHD — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Funds Holding LAZR Funds Holding LYG ETFs Holding APEI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	NEE	The latest trading session saw NextEra Energy (NEE) ending at $62.78, denoting a +0.43% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%. Shares of the parent company of Florida Power & Light Co. Have appreciated by 9.67% over the course of the past month, underperforming the Utilities sector's gain of 10.86% and outperforming the S&P 500's gain of 6.94%. The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is expected to report EPS of $0.51, unchanged from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.17 billion, showing a 0.14% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $3.12 per share and a revenue of $27.52 billion, demonstrating changes of +7.59% and +31.32%, respectively, from the preceding year. Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold). In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 20.03. For comparison, its industry has an average Forward P/E of 16.81, which means NextEra Energy is trading at a premium to the group. Investors should also note that NEE has a PEG ratio of 2.45 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.93 as of yesterday's close. The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. The New Gold Rush: How Lithium Batteries Will Make Millionaires As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%. Download the brand-new FREE report revealing 5 EV battery stocks set to soar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	NEE	Investors in NextEra Energy Inc (Symbol: NEE) saw new options begin trading today, for the February 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NEE options chain for the new February 2024 contracts and identified one put and one call contract of particular interest. The put contract at the $62.50 strike price has a current bid of $1.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $62.50, but will also collect the premium, putting the cost basis of the shares at $60.55 (before broker commissions). To an investor already interested in purchasing shares of NEE, that could represent an attractive alternative to paying $63.45/share today. Because the $62.50 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.12% return on the cash commitment, or 17.79% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for NextEra Energy Inc, and highlighting in green where the $62.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $67.50 strike price has a current bid of $1.25. If an investor was to purchase shares of NEE stock at the current price level of $63.45/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $67.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.35% if the stock gets called away at the February 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NEE shares really soar, which is why looking at the trailing twelve month trading history for NextEra Energy Inc, as well as studying the business fundamentals becomes important. Below is a chart showing NEE's trailing twelve month trading history, with the $67.50 strike highlighted in red: Considering the fact that the $67.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.97% boost of extra return to the investor, or 11.24% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $63.45) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of S.A.F.E. Dividend Stocks » Also see: Bunge Global SA DMA GRC Dividend History PTPI Historical Stock Prices The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	NEE	NextEra Energy Partners (NYSE: NEP), the debt-laden subsidiary of NextEra Energy (NYSE: NEE), just refinanced about 11% of its debt, but the cost to pay that debt went up 71%. In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down how this could be just the tip of the iceberg for rising interest costs that could upend the dividend. It could also cause serious problems for its parent company's cash flows, too. Stock prices used were from the afternoon of Dec. 5, 2023. The video was published on Dec 12, 2023. Should you invest $1,000 in NextEra Energy right now? Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jason Hall has positions in NextEra Energy Partners. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-14	NEE	If there's one constant on Wall Street, it's that things change. After holding up surprisingly well during the 2022 bear market, the utility sector has been Wall Street's worst performer in 2023, as of Dec. 1. Most investors flock to utility stocks for their dividends and low volatility. Consumption habits for electricity, water, and natural gas don't change much from one year to the next. This often leads to highly predictable operating cash flow and the ability for utility stocks to pass along market-topping yields. However, rapidly rising interest rates have created the perfect storm for this traditional safe haven. With Treasury yields soaring to around 5%, investors have been able to pile into longer-term bonds and short-term Treasury bills to net an equal or greater return than most utility stocks -- but with far less risk. Image source: Getty Images. The good news for utility stocks is that Federal Reserve rate cuts are back on the table for 2024. As a result, Treasury yields have been retreating. The lower Treasury yields go, the more attractive this safe-haven sector becomes. As we steam toward a new year, two utility stocks stand out as truly phenomenal buys, while another high-profile utility stock is best avoided. Utility stock No. 1 to buy hand over fist in 2024: NextEra Energy Among the more than 100 publicly traded utilities to choose from, the one that stands out as nothing short of a screaming buy for 2024 is electric utility NextEra Energy (NYSE: NEE). NextEra is the sector's largest utility by market cap ($122 billion). In addition to being weighed down by higher bond yields, NextEra's stock took a big hit in late September and early October when NextEra Energy Partners (NYSE: NEP) slashed its dividend-growth guidance to a range of 5% to 8% through 2026 from an expected double-digit annual growth rate. Parent NextEra Energy orchestrates a number of drop-down transactions to NextEra Energy Partners, and this had investors clearly concerned that NextEra Energy's future growth may be impacted. Thankfully, NextEra Energy's third-quarter operating results and outlook put those rumors to bed. What separates NextEra Energy from a veritable sea of electric utility stocks is its focus on renewable energy. Out of the 70 gigawatts (GW) of capacity NextEra had in operation as of Sept. 30, 34 GW were devoted to renewable energy. This includes 23 GW of wind capacity and 6 GW of solar capacity, both of which are high-water marks globally for any electric utility. Investing in green-energy projects is undeniably costly. But the good news for NextEra Energy is that it's paying dividends. The company's electricity generation costs are considerably lower than its peers, which has led to a compound adjusted earnings-per-share growth rate of 9.8% since 2012. By comparison, most electric utilities grow their bottom lines by a low-single-digit percentage. NextEra has no plans to slow down its green energy push, either. Between the start of 2023 and the end of 2026, an expected 32.7 GW to 41.8 GW of renewable energy is expected to be put into operation. With NextEra Energy stock having its worst year in well over a decade, its forward price-to-earnings (P/E) ratio has fallen to 17.5. This marks the cheapest it's traded to forward-year earnings since 2015 and makes NextEra shares a phenomenal buy. Utility stock No. 2 to buy hand over fist in 2024: York Water A second utility stock that investors can confidently buy hand over fist in the new year is water utility York Water (NASDAQ: YORW). As you're about to see, this under-the-radar water and wastewater utility provider is "Wall Street's Greatest Dividend Stock." Unlike NextEra Energy, which was dragged lower by the poor performance of NextEra Energy Partners, there aren't any operating red flags for York. The poor performance of its shares in 2023 seems to be solely the result of Treasury bonds offering investors a potentially safer way to generate income. Further, York Water's 2.2% yield is only marginally higher than the yield of the benchmark S&P 500. But this dividend is what makes York so special. The company has paid a continuous dividend to its shareholders since its founding in 1816. That's 207 consecutive years -- six decades longer than any other public company in the United States. That's how rock-solid York Water is from a payout standpoint. The consistency of York's dividend is a function of it being a regulated water and wastewater utility for 54 municipalities in South-Central Pennsylvania. By "regulated," I mean the company is unable to pass along rate hikes to its customers without the state approval of a public utility commission (in this case, the Pennsylvania Public Utility Commission, or PPUC). Being regulated ensures that York avoids wholesale pricing, which makes its operating cash flow highly predictable. To speak further on this point, York Water was given the OK in January 2023 by the PPUC to increase rates on approximately 75,000 of its customers. This rate hike is in response to $176 million in ongoing and future infrastructure upgrades. This increase is adding $13.5 million in revenue to the company's top line in 2023, which is a roughly 22% improvement from last year. York's ability to make earnings-accretive acquisitions shouldn't be overlooked, either. Given that utilities typically operate as monopolies or duopolies in the areas they service, homeowners and renters rarely have a choice when it comes to which company handles their services. A steady diet of bolt-on acquisitions has worked well for York Water. Image source: Getty Images. The utility stock to avoid like the plague in the new year: Hawaiian Electric Industries Although the utility sector is typically a safe place to put your money to work, there's always the potential for downside. The one utility stock investors would be wise to avoid like the plague in 2024 is Hawaiian Electric Industries (NYSE: HE). If there's one factor working in Hawaiian Electric's favor, it's that the company remains profitable on an adjusted basis. In fact, the $0.56-per-share profit reported during the September-ended quarter topped Wall Street's consensus by 4%. But that's about the only positive to bring to the table for Hawaiian Electric, which is attempting to navigate its way through a challenging situation. The company's financial concerns stem from the tragic Lahaina wildfire that swept through Maui in mid-August, resulting in the deaths of 100 people. Dozens of outstanding lawsuits claim that Hawaiian Electric's equipment caused and/or failed to mitigate the deadly wildfire. For its part, Hawaiian Electric is contributing $75 million out of the more than $150 million set aside for the One Ohana Initiative. This is a fund designed to help those who lost a loved one in the tragic wildfire, as well as people who were severely injured. But keep in mind that the One Ohana Initiative doesn't resolve the dozens of outstanding lawsuits against the company. How much could it be on the hook for? Hawaiian Electric has $165 million in annual general liability insurance, according to filings with state regulators. But based on estimates from Capstone, the company is facing up to $4.9 billion in potential claims. To make matters worse, Hawaiian Electric Industries will delay filing its financial statements. The multitude of lawsuits the company is facing, coupled with the aforementioned payout to the One Ohana Initiative, creates a mountain of financial uncertainty. This comes atop the company suspending its quarterly dividend shortly after the Lahaina fire. The point is that Hawaiian Electric's future as a solvent business may be in doubt. Though it could be an incredible value, given its history of profitability and the infrastructure it already has in place, the dozens of lawsuits the company is facing may be a multiyear overhang. There's simply no reason for investors to take a big risk on Hawaiian Electric in 2024 when the sector is filled with time-tested, profitable, dividend-paying companies. Should you invest $1,000 in NextEra Energy right now? Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Sean Williams has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	NEE	Investors looking for stocks in the Utility - Electric Power sector might want to consider either Enel SpA (ENLAY) or NextEra Energy (NEE). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Currently, Enel SpA has a Zacks Rank of #2 (Buy), while NextEra Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ENLAY has an improving earnings outlook. But this is just one factor that value investors are interested in. Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. ENLAY currently has a forward P/E ratio of 10.48, while NEE has a forward P/E of 19.08. We also note that ENLAY has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NEE currently has a PEG ratio of 2.33. Another notable valuation metric for ENLAY is its P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NEE has a P/B of 2.17. These are just a few of the metrics contributing to ENLAY's Value grade of B and NEE's Value grade of D. ENLAY stands above NEE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENLAY is the superior value option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enel SpA (ENLAY) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	NEE	Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself. And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans. In today's economic environment, traditional income investments are not working. For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements. That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million. Today's retirees are getting hit hard by reduced bond yields - and the Social Security picture isn't too rosy either. Right now and for the near future, Social Security benefits are still being paid, but it has been estimated that the Social Security funds will be depleted as soon as 2035. Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement? Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks. Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. ACNB (ACNB) is currently shelling out a dividend of $0.3 per share, with a dividend yield of 3.02%. This compares to the Banks - Southwest industry's yield of 0.29% and the S&P 500's yield of 1.66%. The company's annualized dividend growth in the past year was 7.69%. Check ACNB (ACNB) dividend history here>>> MetLife (MET) is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.19% compared to the Insurance - Multi line industry's yield of 1.73% and the S&P 500's yield. The annualized dividend growth of the company was 4% over the past year. Check MetLife (MET) dividend history here>>> Currently paying a dividend of $0.47 per share, NextEra Energy (NEE) has a dividend yield of 3.14%. This is compared to the Utility - Electric Power industry's yield of 3.52% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 10%. Check NextEra Energy (NEE) dividend history here>>> But aren't stocks generally more risky than bonds? It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market. An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time. Thinking about dividend-focused mutual funds or ETFs? Watch out for fees. If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges. Bottom Line Regardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACNB Corporation (ACNB) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips The past few years have seen significant investment in the energy sector. While the industry is still in the growth phase, now is the best time to take your pick and enjoy an early mover advantage with energy stocks. This is a decade defined by climate consciousness, and countries across the world are taking the necessary steps to achieve their long-term goals. The U.S. has a target of 100% carbon-free electricity by 2035 and has committed to triple the nuclear capacity by 2050. We also saw a soaring demand for solar energy this year which benefitted dividend stocks, and while it has subsided now, we could see it pick up in the coming months. If you want to make the most of the urgency surrounding climate change but also want to enjoy passive income, here are the three energy stocks with dividends to consider. NextEra (NEE) Source: madamF / Shutterstock.com NextEra Energy (NYSE:NEE) is a magnificent stock to add to your portfolio for several reasons. The company has had an excellent year and enjoyed EPS growth in the first three quarters. It is also on track to achieve projections for 2023 overall. The company has been recently suffering due to concerns about the high-interest environment and issues related to funding but these are issues of the company’s affiliate NextEra Energy Partners, which is a solely renewable energy company and wouldn’t impact the growth of NextEra Energy. NextEra Energy is a blend of both, a regulated utility company and a renewable energy company. As the largest electric utility in the country, it continues to generate steady revenue and is also involved in renewable energy sources like solar and wind. The company aims to achieve earnings growth at the rate of 6% to 8% through 2026. NextEra Energy has a solid history of rewarding shareholders with regular dividends and it pays an above average dividend of 47 cents quarterly for a 3.13% yield. NEE stock is trading at $59 today, and looking at the strong history and annual earnings growth rate, it looks like a good bet. It aims to achieve a 10% dividend growth through 2024 at least. Guggenheim analyst has a price target of $70 for the stock with a buy rating while Citigroup has initiated coverage on the stock with a buy. Enterprise Products Partners (EDP) Source: Casimiro PT / Shutterstock.com You can take home significant passive income by investing in Enterprise Products Partners (NYSE:EPD). The company has a dividend yield of 7.6% and has been increasing the dividend payouts for the past 26 years consecutively. The North America-based company has an impressive portfolio of assets which helps maintain steady cash flow. It charges a fee from companies who use its assets and this helps it ensure steady revenue. The company has an extensive pipeline network and is not exposed to the volatility in oil and gas prices. In its third quarter results, EDP saw an EPS of 61 cents, and revenue hit $12 billion. The revenue has dropped 22% year-over-year but it should not be alarming as the dip could be temporary. It can also be attributed to the high interest rates, and this decline could be factored in the stock price already. Exchanging hands for $26, EDP stock is very close to the 52-week high and is up 8% year to date. Since the company makes money when others use its assets, there is little risk of losing your money. It has long-term contracts and a strong cash flow position. Enterprise Products has recently announced four new production projects in the Permian Basin which will help expand the natural gas liquid operations. Since the company’s liquidity position is strong, it can continue to invest in infrastructure and assets. It also has a low-debt balance sheet which works in its favor. I strongly believe that the company is in a position to sustain the dividends in the coming years. Buy the stock before it soars and enjoy passive income for years to come. Brookfield Renewable Partners (BEP) Source: IgorGolovniov / Shutterstock One of the largest companies in the energy space is Brookfield Renewable Partners (NYSE:BEP). It manages several renewable energy sources including solar, wind and hydroelectric. With over $800 billion in assets under management, Brookfield is one of the strongest players in the industry today. BEP stock is exchanging hands for $25 today and has lost 2% of its value year to date. While it isn’t much, the stock still looks undervalued to me. If you look at the financials, there are many reasons to bet on the stock. It saw a 7% year-over-year rise in revenue to hit $1.18 billion. The stock enjoys a dividend yield of 5.35% which is impressive. The company is profitable and this means it will not have to worry about borrowing for operations. It is also a sign that it will be able to continue rewarding shareholders for the coming quarters. Its diverse portfolio and impressive capacity make it worth an investment. It is a powerhouse of mergers and acquisitions, and the management aims a 12% to 15% return by increasing the assets. If it can achieve this double-digit return, it could see the stock move upwards. BEP stock will not be this cheap forever. It could soar higher in 2024, and holding this stock for passive income can be a smart choice. A strong balance sheet, impressive projects, and a stable dividend make it a buy. On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 of the Most Attractive Dividend Stocks in the Energy Space appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-13	NEE	It wasn't long ago that the stock of NextEra Energy Partners (NYSE: NEP) was trading near $50 per share. Shares then tumbled in late September after the partnership slashed its expectations for the growth rate of distributions to shareholders. Now Mizuho analyst Anthony Crowdell thinks shares have plunged too far. This week, Crowdell cut his firm's price target from $40 to $33, but reiterated a buy rating. That's because that still represents more than 20% upside for the shares. Growth rate cut in half Prior to the late September update, NextEra Partners told investors it expected to grow distributions to shareholders at an annual rate of 12% to 15% through 2026. In the second quarter, it did in fact declare a distribution boost of about 12% compared to last year. But it surprised investors in September by announcing a revision saying it would now target just 6% annual growth through at least 2026. You can blame interest rates for the change. NextEra Partners is a limited partnership that acquires and owns clean energy projects for its parent company, NextEra Energy. It pays out its funds from operations to shareholders as a distribution. So it taps the debt and equity markets for capital to support its growth. With interest rates at the highest level in more than a decade, more money needs to go to debt repayments. A buy rating makes sense The Mizuho analyst reacted to that change by slashing his price target to $40 from $86 when NextEra Partners announced the change in distribution growth expectations. This week's cut to $33 per share reflects the feeling among investors that interest rates will remain higher than what has been the norm for the past decade. But individual investors can take advantage of that feeling. That's because while still higher than in the recent past, there is also an overwhelming expectation that the direction for rates will be down from here. Inflation slowed to an annual rate of 3.1% in November, and many market followers expect the Federal Reserve to begin cutting rates next year. Don't lose track of the fact that the distribution wasn't cut -- only the growth rate was cut. That means now is the time to get into income-oriented investments like NextEra Energy Partners. It may not take much good news on the interest rate front to see the gain of 20% or so that Mizuho predicts. Should you invest $1,000 in NextEra Energy Partners right now? Before you buy stock in NextEra Energy Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. See the 10 stocks Stock Advisor returns as of December 11, 2023 Howard Smith has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips As we head into the new year, the one of the biggest trends on many investors’ minds is renewable energy. The trillion-dollar renewable energy industry is worth a close inspection. Optimism prevails despite some recent downturns in renewable energy companies such as FirstSolar (NASDAQ:FSLR) and Plug Power (NASDAQ:PLUG). Already, wind and solar energy is dipping to low costs of around $30 to $40 per MWh. In contrast, electricity holds at nearly $150 to $166 per MWh. With increasing Environmental, Social and Governance (ESG) friendliness concerns, countless renewable energy stocks are currently sitting at perfect discounts. Investors stand ready to scoop them up before the year ends. Let’s explore three undervalued renewable energy stocks that all investors should have on their radar as heading into the holiday season. General Electric Company (GE) Source: Sundry Photography / Shutterstock.com Multinational conglomerate General Electric Company (NYSE:GE) is widely known for its manufacturing and diversified technology and services. However, the business’s renewable energy division is cemented as a leader in green technology and innovation. Yahoo Finance analysts estimate that this stock will trade within a one-year price range of $74 – $131, with an average of $112. GE will be at the forefront of renewable energy growth due to its strong presence in renewable grid solutions and offshore wind power. Currently, the business is facing a loss, as described in its Q3 earnings call. However, orders still increased by 20% despite the current conditions. General Electric Company is presently trading at a P/E Ratio of 12.52x, far below the Renewable Industry’s P/E of 83.88x. It appears quite undervalued, compared to many of its peers in the green and renewable energy industry. Also, its 188% year over year (YOY) EPS growth rate indicates the stock is likely positioned to grow well going forward. Southwestern Energy Company (SWN) Source: Oil and Gas Photographer / Shutterstock.com Southwestern Energy Company (NYSE:SWN) explores, and develops more sustainable ways to use natural gas, oil, and natural gas liquids. SWN has a five-year market cap growth rate of 178.86%. Yahoo Finance analysts estimate this stock will trade within a one-year price range of $5.00 to $15.00, with an average of $8.52. Southwestern Energy Company has implemented innovative drilling techniques to increase its natural gas collection rate. In fact, it is decreasing costs by $690 million over the last year. True, this company may not be entirely focused on renewable energy sources. Yet, it is commited to being one of the lowest carbon-emitting natural gas companies. Also, SWN plans to preserve natural gas as a long-term, responsible energy solution. Further, they are collaborating with renewable energy companies. The company is likely to be undervalued with a P/E ratio of 1.61x compared to the sector average of 4.47x. Southwestern has an EPS of 4.61, with an average EPS growth rate of 7.24% over the past few years. SWN increased its earnings significantly from $533 million to $5.1 billion over the past five years, an increase of 394.44%. Currently, it boasts an innovation score of 68, higher than the sector’s average of 58. NextEra Energy Inc. (NEE) Source: Khanthachai C / Shutterstock.com NextEra Energy Inc. (NYSE:NEE) is one of North America’s largest providers of wind energy as well as solar. This gives it a unique advantage since it is involved in both production as well as distribution. Yahoo Finance analysts predict the stock will trade within a range of $44 to $103, with an average of $73. NextEra Energy is deciding to sustain long-term growth. One of them is primarily being the reduction in its estimated partner distribution per unit growth to 6%, nearly half of what it announced previously. Now, it can sustain organic growth without pouring in extra capital. Due to an addition of 3.2 gigawatts of renewable energy to its backlog, all in Q3 alone, it looks promising. Finally, NextEra Energy has impressive financials, with a P/E ratio of 15.75x, a fraction of the Renewable Industry’s P/E of 83.88x. Also, the company had a strong revenue growth of 38% this past year. On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 3 Most Undervalued Renewable Energy Stocks to Buy in December appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-12	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-11	NEE	Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the Vanguard Utilities ETF (VPU), a passively managed exchange traded fund launched on 01/26/2004. Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors. Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%. Index Details The fund is sponsored by Vanguard. It has amassed assets over $4.75 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. VPU seeks to match the performance of the MSCI US Investable Market Utilities 25/50 Index before fees and expenses. The MSCI US Investable Market Utilities 25/50 Index comprises of stocks of large, mid-size, and small U.S. companies within the utilities sector. Costs When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal. Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 3.41%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Utilities sector--about 99.80% of the portfolio. Looking at individual holdings, Nextera Energy Inc. (NEE) accounts for about 13.39% of total assets, followed by Southern Co. (SO) and Duke Energy Corp. (DUK). The top 10 holdings account for about 51.95% of total assets under management. Performance and Risk The ETF has lost about -8.43% so far this year and is down about -8.71% in the last one year (as of 12/11/2023). In that past 52-week period, it has traded between $121.65 and $158.16. The ETF has a beta of 0.57 and standard deviation of 17.79% for the trailing three-year period, making it a medium risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk. Alternatives Vanguard Utilities ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VPU is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space. Fidelity MSCI Utilities Index ETF (FUTY) tracks MSCI USA IMI Utilities Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Fidelity MSCI Utilities Index ETF has $1.36 billion in assets, Utilities Select Sector SPDR ETF has $14.08 billion. FUTY has an expense ratio of 0.08% and XLU charges 0.10%. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Utilities ETF (VPU): ETF Research Reports NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Fidelity MSCI Utilities Index ETF (FUTY): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-10	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-10	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Countries around the globe are trying to take the necessary steps to make our world a cleaner, and greener place. Leaders are talking about the impact of climate change. Several countries have laid out policies for the next decade. And while companies engaged in the energy sector didn’t have a good year they are ready for growth. Energy companies are significantly contributing towards the betterment of society. And now is the right time to boost your investment portfolio with these seven clean energy stocks for a cleaner and more profitable future. Clean Energy Stocks: Li Auto (LI) Source: Robert Way / Shutterstock.com Electric vehicle makers are contributing towards building a cleaner and greener future. While the demand for EVs seems to have dropped, one company is firing on all cylinders. Li Auto (NASDAQ:LI) is one EV stock that is worth an addition to your portfolio and it will not disappoint. The company has reported impressive delivery numbers throughout the year and ended the third quarter with 105,108 vehicle deliveries, a 296% year-over-year rise. Starting next year, the company will launch its fully electric vehicle which already has 10,000 pre-orders. This shows the popularity of Li Auto in China. The company has strong financials and has managed to beat expectations in the past two quarters. Trading at $35 today, the stock is up 69% year to date but still below the 52-week high of $47. Li’s momentum shows no signs of slowing and this is one stock to buy and hold throughout 2024. BYD Co. (BYDDF) Source: shutterstock.com/Trygve Finkelsen One of the biggest players in the Electric vehicle industry, BYD (OTCMKTS:BYDDF) is giving solid competition to Tesla (NASDAQ:TSLA) and it could beat Tesla’s delivery numbers in the coming months. The company has an extensive network and a global presence which ensures steady growth in delivery numbers. BYD Company is also the second largest battery maker in the world. It has delivered 2,079,638 vehicles a year to date, which is a 43% increase from the previous year. Driven by the higher demand, the company’s profits also increased by 142% year over year in the first nine months of 2023. Its Thailand production unit will commence in 2024 and it also plans to build a new plant in Mexico. BYD has its eyes set on theglobal marketand as the EV industry expands, there is a lot more to come. Exchanging hands for $27 today, the stock is highly undervalued right now. Clean Energy Stocks: Enterprise Products Partners (EPD) Source: Casimiro PT / Shutterstock.com One big reason to invest in Enterprise Products Partners (NYSE:EPD) is its high dividend yield of 7.6%. Based in North America, this company has an impressive portfolio of assets that ensure steady cash flow and are considered to be highly reliable. The company has managed to increase the dividend payouts for the past 25 years consecutively. It has a stable balance sheet with enough cash flow and is one of the biggest energy companies in the industry today. The company makes money by charging fees from the customers to use its assets and this ensures steady revenues. I believe the company will be able to sustain the dividends in the coming years and you must buy the stock before it soars higher. It is exchanging hands for $26.25 today and is almost at the 52-week high, but this is one stock that will keep rewarding you. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com The higher interest rates and concerns about funding are giving a tough time to NextEra Energy (NYSE:NEE), and while the stock is down, it is not out. It is a blend of both worlds- a utility company and a renewable energy company. It is the largest electric utility in the US and is involved in renewable energy sources like solar and wind. The one reason it is a safe bet is its regulated business, Florida Power & Light which keeps generating steady income over the years, and it also has a significant portfolio of renewable assets. Trading at $59, the stock is down 28% year to date and is much lower than the 52-week high of $88. You can buy the stock near its three-year low right now. This clean energy company has a long way to go and will keep rewarding you through steady dividends. It enjoys a dividend yield of 3.12% and the management expects to achieve 10% dividend growth through 2024. Clean Energy Stocks: Enbridge (ENB) Source: JHVEPhoto / Shutterstock.com Enbridge (NYSE:ENB) is a no-brainer stock when it comes to green energy stocks. The energy company is based in North America and has recently shifted towards renewable energy. One solid reason to own the stock is the company’s steady dividend history. It has been paying dividends for the past 28 years and I do not think there will be any changes to this. Earlier, the company was heavily dependent on oil and generated most of its revenue through oil pipelines, but it has diversified now. It currently generates revenue from clean energy and natural gas. Its financials are proof of the company’s strength. In the recent quarter, it saw a jump from $2.1 billion in cash flow to $3.1 billion year over year. It shows that the company has enough liquidity to keep rewarding the shareholders. To expand its presence in the clean energy sector, the company is planning to purchase three natural gas utilities in 2024. Trading at $34 today, the stock is a big buy for the passive income. SolarEdge Technologies (SEDG) Source: rafapress / Shutterstock.com The demand for solar energy has been on the rise and this gave a boost to SolarEdge Technologies (NASDAQ:SEDG). It provides inverters for residential and commercial properties and offers smart energy power optimizers that work for solar systems. The company saw impressive growth earlier this year, but the earnings weren’t as impressive. It saw a 13% year-over-year drop in revenue due to the slowing demand in Europe. It also lost $61 million in the quarter due to the delay in European backlogs. But I believe this could be temporary. The long-term demand for solar energy will remain high, and the stock is a buy and hold for patient investors. Exchanging hands at $80 today, the stock is down 71% year to date, and this dip is a good chance to buy. It is much lower than the 52-week high of $345, but its long-term potential is massive. First Solar (FSLR) Source: T. Schneider / Shutterstock.com One of the early players and game changers in the solar industry segment is First Solar (NASDAQ:FSLR). It is one of the clean energy stocks with massive growth potential. While this year has been rough for the company, its total bookings backlog is proof that the company has enough orders to keep going. The backlog of 81.8GW will last until 2030 and it also has opportunities for booking another 65.9GW. It plans to begin operations at the Louisiana and Alabama factories in the next two years. These facilities will increase production significantly and it could be reflected in the bottom line. The company is also benefitting from the subsidiaries and it has a strong balance sheet. For the recent quarter, the net income came in at $2.50 and beat expectations. Trading at $144 today, down 25% in the past six months, the stock might look expensive but it is worth your money. On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Green Giants- 7 Must-Buy Stocks for a Cleaner (More Profitable) Future appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-10	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips We are in the midst of an energy revolution. As the world transitions from carbon-intensive energy to renewable energy, industries will be disrupted and new, winners will be crowned. And the right investments will let any of us share in the winnings. But the renewable revolution requires batteries — and lots of them. Oil, gas and coal succeeded because they pack an incredible amount of energy into an extremely efficient package. The energy liberated by breaking carbon bonds can power a piston, boiler or engine. And carbon-based energy is extremely easy to store and move from place to place. Batteries will need to be just as efficient if they are to replace carbon-based energies completely. Not only that but batteries are needed to smooth out production and consumption. A solar panel and a wind turbine can produce a huge amount of energy. But you can’t stick a wind turbine on your car. And you can’t get solar power for half of the day. Without batteries, excess power is wasted, and nothing is available when it’s gone. The governments of the world are pushing for renewable energy. And the markets are demanding cheaper energy, which can only come by replacing carbon with renewables. There’s never been a better time to invest in the battery stocks. So, here are the top battery stocks to buy right now. Tesla (TSLA) Source: Zigres / Shutterstock.com Tesla’s (NASDAQ:TSLA) biggest advantage over other electric vehicle (EV) manufacturers has long been its battery technology. It has long shown the ability to make cheaper, longer-lasting batteries than anyone else in the industry. The company’s dominance continues today. It is not only a top EV company, its batteries are also available for the home market. Tesla’s Powerwall is a line of home batteries intended for use alongside solar panels. The batteries continue to get high reviews, and the newest Powerwall 3 will be coming out soon in 2024. The great thing about Tesla’s batteries is they slot in well to every part of its business. Both home solar and EVs benefit from every improvement in battery technology. And even if another startup does produce a better battery, Tesla has the free cash flow to buy them outright. That happened in 2021 when the company secretively acquired a Canadian startup to cut battery prices in half. And it happened in 2019 when Tesla acquired another Canadian battery company. If new batteries are developed in Canada, Tesla will be hunting them like a bloodhound. Tesla continues to post better earnings than any other car or battery company in the world. Recently, the company’s costs have been rising faster than revenue. Still, its latest earnings report showed energy generation and storage revenue increasing by 40% year-on-year. The market for Tesla’s home batteries has plenty of room to run. There are three reasons Tesla has revolutionized EVs and become one of the most valuable companies on Earth — batteries — batteries — batteries. Among the top battery stocks, TSLA stands high above the rest. NextEra Energy (NEE) Source: madamF / Shutterstock.com NextEra Energy (NYSE:NEE) is a giant in the energy field. As the world’s largest generator of renewable energy, NextEra knows the key to renewables is storage. After all, what do you do when the sun isn’t shining and the wind isn’t blowing? Without storage, you have no choice but to turn back on a coal or gas source. That’s why NextEra Energy is also the world’s largest energy storage company. Its installed battery capacity is head and shoulders above its competitors. In Q3 2023, it installed nearly as much storage as its nearest competitor had total capacity. With multiple major storage projects still ongoing, NextEra is becoming a key beneficiary of the battery revolution. NextEra has not always had its own way this year. NEE stock dropped more than 28% year-to-date as the high-interest rate environment dampened growth. But it seems analysts underestimated it. NextEra beat estimates in Q3 2023, and CEO John Ketchum expects to continue beating them every year through 2026. That’s a big boast to make, but if he’s right, now is the best time to buy in. As for those earnings, NextEra’s revenue grew faster than operating expenses. It is still growing on the right track, even while other expenses weigh the company down. And with more storage and renewable power coming online every year, NextEra is a top battery stock that should be on everyone’s watchlist. QuantumScape (QS) Source: JHVEPhoto / Shutterstock.com QuantumScape (NYSE:QS) has had a wild ride in 2023. With precipitous ups and downs, its stock price is currently flat year-to-date. But the company could rocket up again if its solid-state EV batteries take hold. Unlike other companies that use batteries as part of their core business, QuantumScape is a pre-revenue company developing the batteries of the future. It is working on solid-state batteries, promising higher energy density, lower cost and more safety. Higher energy density is also a cost-saver all on its own as it means a smaller, lighter battery. That, in turn, means the rest of the car can be smaller, lighter and cheaper. The science behind QuantumScape’s batteries is sound. There is significant research showing the superiority of solid-state batteries over current lithium-ion batteries. But putting that research into practice will take time and money. Speaking of money, a major contributor to QuantumScape’s stock remaining flat was the public offering announcement it made in August. Shareholder dilution will always cause such movement. But the move is worth it if it puts the company on a stronger footing. QuantumScape’s most recent earnings report shows $1,100 million in cash and securities. With a net loss of $110 million, the company has roughly 2.5 years of runway. An investor should be cautious of dilution, as that money can go fast. But QuantumScape offers the best opportunity to invest in the batteries of tomorrow. Considering how revolutionary the batteries of today have been, QS is one of the best battery stocks to buy today. On the date of publication, John Blankenhorn did not hold any positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. John Blankenhorn is a neuroscientist at Emory University. He has significant experience in biochemistry, biotechnology and pharmaceutical research. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post If You Can Only Buy One Battery Stock in December, It Better Be One of These 3 Names appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-09	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips At the end of 2022, global wind power generation accounted for roughly 7.33% of electricity production. However, the currency expansion rates still fall critically short of putting major nations on track to meet 2050 net-zero emissions goals. Recognizing the gap, the International Energy Agency has urged doubling the rate of wind power growth in coming years. This situation creates an opportunity to buy wind stocks at discounted prices before faster industry growth kicks in. Below, I’ve highlighted three wind stocks to buy. All three come with buy ratings (or better) from analysts and are poised to ride the accelerating shift to renewable wind energy. Let’s get started. General Electric Company (GE) Source: Sundry Photography / Shutterstock.com General Electric Company (NYSE:GE) has been around for over 130 years. Headquartered in Boston, this American multinational conglomerate manufactures jet engines, wind turbines, and medical machines for various industries. GE’s most recent report indicates orders are up 18% year-over-year, hitting $17.9 billion. Meanwhile, adjusted revenue is $16.5 billion, up 18% from last year. Additionally, the stock’s EPS reached $0.82, exceeding estimates by 46.43%. General Electric announced in 2021 that it would split the company between aviation, healthcare, and energy. Looking ahead to 2024, the company’s energy segment, GE Vernova, will spin off from the parent company in Q2, listed as GEV on the New York Stock Exchange. This precedent was set by GE HealthCare Technologies Inc. (NASDAQ:GEHC) which split off earlier this year and trades well above its IPO. Analysts are bullish on GE, setting a high target of $150 and issuing GE a strong buy rating. NextEra Energy, Inc. (NEE) Source: IgorGolovniov/Shutterstock.com NextEra Energy, Inc. (NYSE:NEE) has become one of the world’s largest electric utility companies with over 58 gigawatts of power generation capacity. The company’s largest subsidiary is Florida Power & Light (FLP) which provides electricity to about 5.8 million customer accounts. However, most of NextEra’s rise is fueled by its fast-growing renewable energy business, NextEra Energy Resources (NEER) which focuses on global wind and solar power production. NextEra also reported a solid third quarter. Impressively, NEE’s diverse portfolio generated over $20 billion in annual revenue last year. Total revenue was $7.17 billion with an EPS of $0.94, exceeding estimates by 9.3%. NEER had a remarkable 21% adjusted earnings surge, fueled by renewable energy investments. Adding 3,245 megawatts of renewable and storage to the backlog further emphasizes NEE’s commitment to sustainable energy. With its 10.6% year-to-date adjusted EPS growth, a 3.19% dividend yield, and an estimated 64% upside potential based on analyst’s prediction of a $96 high, NEE could be an ideal investment. It’s no wonder analysts have been rating the company as a strong buy. TPI Composite (TPIC) Source: Khanthachai C / Shutterstock.com TPI Composites (NASDAQ:TPIC) is a speculative pick for this list, since the company has manufactured turbine wind blades out of specialty materials since 2001. Headquartered in Scottsdale, Arizona, TPI operates factories globally and supplies over 38% of the international onshore wind market outside China. TPI predicts their wind blade production from 2018 to 2022 could reduce 1.7 billion metric tons of CO2 emissions globally. In its Q3 report, the company reported a 3% decline in net sales to $373 million. This included a net loss of $72.8 million. Luckily, the loss was influenced by one-off events, including the Proterra bankruptcy and incremental warranty expenses. Their adjusted EBITDA shows the temporary setback, recording a loss of $27.4 million compared to the $5.1 million profit this quarter last year. Despite these challenges, TPI actively addressed concerns through working capital initiatives, including the sale of a facility in China. These efforts have resulted in an unrestricted cash balance of $161 million. Since the stock has taken quite the beating this year, this might be a good time to add TPIC to your portfolio. As I said, the loss was largely caused by the one-offs and seem to be in the past. And to be sure, analysts are still cautiously optimistic about the stock, issuing TPI a buy rating with a projected high price target of $8. This is far above the current price of around $2.48 per share. However, if you’re going to buy in, it might be best to keep the positions small until we have at least a few good quarters in the rear-view mirror. As of the date of publication, Rick Orford did not have any positions (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Wind Stocks to Buy for a Sustainable and Profitable Future appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-08	NEE	Fintel reports that on December 8, 2023, Citigroup initiated coverage of NextEra Energy (NYSE:NEE) with a Buy recommendation. Analyst Price Forecast Suggests 23.41% Upside As of November 27, 2023, the average one-year price target for NextEra Energy is 73.86. The forecasts range from a low of 44.44 to a high of $107.94. The average price target represents an increase of 23.41% from its latest reported closing price of 59.85. See our leaderboard of companies with the largest price target upside. The projected annual revenue for NextEra Energy is 24,362MM, a decrease of 11.09%. The projected annual non-GAAP EPS is 3.11. For more in-depth coverage of NextEra Energy, view the free, crowd-sourced company research report on Finpedia. What is the Fund Sentiment? There are 3493 funds or institutions reporting positions in NextEra Energy. This is a decrease of 22 owner(s) or 0.63% in the last quarter. Average portfolio weight of all funds dedicated to NEE is 0.62%, a decrease of 8.03%. Total shares owned by institutions increased in the last three months by 4.58% to 1,828,142K shares. The put/call ratio of NEE is 0.73, indicating a bullish outlook. What are Other Shareholders Doing? Jpmorgan Chase holds 82,897K shares representing 4.04% ownership of the company. In it's prior filing, the firm reported owning 75,361K shares, representing an increase of 9.09%. The firm decreased its portfolio allocation in NEE by 88.94% over the last quarter. VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 63,881K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 63,103K shares, representing an increase of 1.22%. The firm decreased its portfolio allocation in NEE by 18.87% over the last quarter. VFINX - Vanguard 500 Index Fund Investor Shares holds 48,629K shares representing 2.37% ownership of the company. In it's prior filing, the firm reported owning 48,175K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in NEE by 20.20% over the last quarter. Bank Of America holds 44,248K shares representing 2.16% ownership of the company. In it's prior filing, the firm reported owning 41,386K shares, representing an increase of 6.47%. The firm decreased its portfolio allocation in NEE by 77.37% over the last quarter. Geode Capital Management holds 37,484K shares representing 1.83% ownership of the company. In it's prior filing, the firm reported owning 36,671K shares, representing an increase of 2.17%. The firm decreased its portfolio allocation in NEE by 19.96% over the last quarter. NextEra Energy Background Information (This description is provided by the company.) NextEra Energy, Inc. is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is the largest rate-regulated electric utility in the United States as measured by retail electricity produced and sold, and serves more than 5.6 million customer accounts, supporting more than 11 million residents across Florida with clean, reliable and affordable electricity. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. A Fortune 200 company and included in the S&P 100 index, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune's 2020 list of 'World's Most Admired Companies' and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance. Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds. Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits. Click to Learn More This story originally appeared on Fintel. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	NEE	NextEra Energy (NEE) closed the most recent trading day at $59.85, moving -0.58% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.37%. Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 4.7% in the past month. In that same time, the Utilities sector gained 4.66%, while the S&P 500 gained 4.39%. Investors will be eagerly watching for the performance of NextEra Energy in its upcoming earnings disclosure. On that day, NextEra Energy is projected to report earnings of $0.51 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.17 billion, up 0.14% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and a revenue of $27.52 billion, representing changes of +7.59% and +31.32%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, NextEra Energy boasts a Zacks Rank of #3 (Hold). Looking at valuation, NextEra Energy is presently trading at a Forward P/E ratio of 19.3. This valuation marks a premium compared to its industry's average Forward P/E of 16.28. Investors should also note that NEE has a PEG ratio of 2.36 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.86. The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	NEE	Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Occidental Petroleum Corp (Symbol: OXY), where a total volume of 55,009 contracts has been traded thus far today, a contract volume which is representative of approximately 5.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of OXY's average daily trading volume over the past month, of 8.7 million shares. Particularly high volume was seen for the $58 strike call option expiring December 08, 2023, with 5,467 contracts trading so far today, representing approximately 546,700 underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $58 strike highlighted in orange: Tyson Foods Inc (Symbol: TSN) saw options trading volume of 17,116 contracts, representing approximately 1.7 million underlying shares or approximately 56.8% of TSN's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $65 strike put option expiring January 19, 2024, with 3,500 contracts trading so far today, representing approximately 350,000 underlying shares of TSN. Below is a chart showing TSN's trailing twelve month trading history, with the $65 strike highlighted in orange: And NextEra Energy Inc (Symbol: NEE) saw options trading volume of 61,981 contracts, representing approximately 6.2 million underlying shares or approximately 53.8% of NEE's average daily trading volume over the past month, of 11.5 million shares. Particularly high volume was seen for the $77.50 strike put option expiring January 19, 2024, with 21,120 contracts trading so far today, representing approximately 2.1 million underlying shares of NEE. Below is a chart showing NEE's trailing twelve month trading history, with the $77.50 strike highlighted in orange: For the various different available expirations for OXY options, TSN options, or NEE options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: TNP Options Chain Institutional Holders of NFO Top Ten Hedge Funds Holding OVAS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	NEE	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR Fund (Symbol: XLU) where we have detected an approximate $401.2 million dollar inflow -- that's a 2.9% increase week over week in outstanding units (from 215,220,000 to 221,520,000). Among the largest underlying components of XLU, in trading today NextEra Energy Inc (Symbol: NEE) is trading flat, Southern Company (Symbol: SO) is up about 0.2%, and Duke Energy Corp (Symbol: DUK) is up by about 0.5%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.77 per share, with $73.79 as the 52 week high point — that compares with a last trade of $63.79. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs had notable inflows » Also see: SAH Dividend Growth Rate XTGR Videos Funds Holding LMNL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-07	NEE	Utilities are generally considered income stocks, so rising interest rates have been a headwind as they make other income options (like CDs) more attractive. If you are a long-term investor, however, this could be an opportunity to add some well-positioned utilities to your portfolio. Three that are worth considering this December are Duke Energy (NYSE: DUK), NextEra Energy (NYSE: NEE), and Black Hills (NYSE: BKH). Here's why. Duke Energy is getting back to basics Duke Energy is one of the largest regulated electric and natural gas utilities in the U.S., with a market cap of around $70 billion. It recently sold a contract renewable power business, which has left it with only regulated operations. This is a case of a utility getting even more boring, since regulated utilities have monopolies in the regions they serve but have to get capital investment plans and rates approved by the government. That generally results in slow but steady growth over time. Today, Duke Energy has a capital investment budget of roughly $65 billion dollars. That money will be spent on things like new capacity and asset improvements (storm hardening, for example) over the next five years. This backs management's belief that it can provide earnings growth of between 5% and 7% a year through at least 2027. That, in turn, should support annual dividend increases that will extend the current 19-year annual dividend increase streak well into the future. With a dividend yield of 4.3%, even conservative dividend investors will probably want to dig into this story. NextEra Energy is like two businesses in one NextEra Energy is a dividend growth machine, with annual increases in each of the past 29 years and an annualized dividend growth rate of more than 10% a year over the past decade. That's incredibly fast dividend growth for a utility. The question for income-focused investors is how the company is managing to grow the dividend so quickly. The answer is by being two companies in one. The core of NextEra Energy is Florida Power & Light, one of the largest regulated utilities in the U.S. Notably, it operates in a state that has seen a steady inflow of residents (and thus new customers) for years. That's the foundation on which NextEra Energy has built a clean energy business that is now one of the largest producers of solar and wind power on Earth. The regulated utility (about 70% of the business) should continue to be a slow and steady performer, while the clean energy business (about 30%) should drive long-term growth. Notably, management expects this combination to support 6% to 8% earnings growth through 2026 with 10% dividend growth through at least 2024. The current dividend yield of around 3.1% is near the high end of the range over the past decade, suggesting that now could be a great time to add this dividend growth stock to your portfolio. Tiny Black Hills has a big streak Duke has increased its dividend for 19 years. NextEra's dividend has grown annually for 29 years. And Black Hills is a Dividend King, with over 50 consecutive annual dividend increases. While NextEra is an industry giant with a $120 billion market cap, its dividend record is easily bested by Black Hills, which has a $3.6 billion market cap. That said, Black Hills, like Duke, is essentially just a boring regulated utility, so dividend growth (roughly 5% a year over the trailing one-, three-, five-, and 10-year periods) isn't as robust as industry giant NextEra and probably never will be. However, for investors interested in a reliable dividend, 5% annual dividend growth should be more than enough to keep them happy. Right now Black Hills' yield is 4.6%, which is toward the high end of the yield range over the past 10 years. That could make now a good time to add this reliable dividend payer to your income portfolio. But investors should go in knowing that leverage is a bit high today, leading management to pull back on capital investment plans in 2023 in favor of debt reduction. That could limit growth for a bit, though the company has plans to increase spending again in the coming years. Boring, but attractively priced Duke Energy is 12% below its 52-week high. Black Hills is off its 12-month high by 27%. And NextEra is lower by 32%. If you are looking for an opportunity to add reliable dividend stocks to your portfolio, now is the time to consider these utilities. Duke is the most boring, NextEra the most exciting (particularly for dividend growth investors), and Black Hills is the under-the-radar pick. But if you can stomach buying while others are selling, all three appear attractively priced today. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Reuben Gregg Brewer has positions in Black Hills. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Duke Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	NEE	NextEra Energy Partners (NYSE: NEP) is closing in on the funding needed to refinance its debt due early next year, and markets are applauding the added certainty. Shares of NextEra Energy Partners were up 5% as of 11 a.m. ET, and shares of parent NextEra Energy (NYSE: NEE) were up nearly 3%, on the deal and positive commentary from one Wall Street analyst. 2024 comes into focus It has been a tough year for holders of NextEra Energy Partners. The company, a master limited partnership (MLP), or yieldco, is highly reliant on debt to fund its business model. Higher rates have eaten into profitability, causing a midyear profit warning that caused the stock to fall about 75% from its all-time highs and down 60% in 2023. NextEra Energy, its electric utility parent, has done better but is also down about 30% for the year. One of the key questions lingering over NextEra Energy Partners is whether its dividend is sustainable as some of its loans come up for refinancing. On Tuesday, NEP priced a private offering of $750 million in unsecured notes at 7.25%. The net proceeds will be used to repay 4.25% senior notes due in July and September 2024 as well as borrowings outstanding under NextEra Energy Partners' revolving credit facility. The borrowing rate is a bit higher than what Wall Street had expected, but the markets appear to be cheering the added clarity about how NEP will deal with its debt. Both companies also got a positive mention from Guggenheim. The investment bank raised its price target on NextEra Energy to $70 from $65 and reiterated its buy rating, saying the company's Florida utility remains "an underappreciated growth vehicle." The bank lowered its price target on NEP to $37, from $42, but kept a buy rating on the shares. Down big in 2023, are NextEra Energy and NEP buys? These two companies have similar names and a shared heritage, but investors should consider them separately. Of the two, NextEra Energy appears the safer bet thanks to its regulated utility business and its significant portfolio of renewable energy assets. NextEra Energy could require some patience, but investors buying in today are likely to be glad they did in the years to come. NextEra Energy Partners is a bit more of a wild card. Its current 13% dividend yield looks enticing, but the yield is high in part because Wall Street is betting the current dividend is unsustainable. Management is trying to prove naysayers wrong, but investors seeking income should be aware that even after the private offering of notes, NEP still has a rocky path ahead. NextEra Energy has a relatively modest yield by comparison, paying just 3% right now. But given its better risk profile, it is the better stock to buy right now for those looking to add to their energy exposure. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-06	NEE	Who needs a theme park when you have Wall Street? Since the start of the decade, the three major stock indexes have navigated two separate bull and bear markets. Although 2023 has featured a sizable rally for Wall Street, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite remain below their all-time closing highs. For long-term investors, it means opportunities still abound to snatch up high-quality companies at a discount. Image source: Getty Images. One of the best aspects of putting your money to work on Wall Street is that it's easier than ever for retail investors to get started or continue on their path to financial independence. Most online brokerages have completely done away with commission fees for trades on major U.S. exchanges, as well as minimum deposit requirements. This means any amount of money -- even $300 -- can represent the perfect amount to invest. If you have $300 that's ready to invest, and you're 100% certain this cash won't be needed to pay bills or cover emergency expenses, the following three stocks stand out as no-brainer buys right now. NextEra Energy The first magnificent stock to add to your portfolio right now with $300 is none other than electric utility NextEra Energy (NYSE: NEE). After two decades of virtually uninterrupted gains, NextEra's stock has hit the skids in 2023, with higher interest rates and a big uptick in Treasury yields to blame. Higher interest rates will make future projects financed by debt costlier. Meanwhile, Treasury bonds are virtually risk-free investments offering yields of around 5% at the moment. Most investors flock to utility stocks for their low volatility and market-topping yields. However, investors have been able to net similar yields, with practically no risk to their principal, from Treasury bonds, which has made industry leaders like NextEra Energy less popular among income seekers. However, NextEra Energy is an industry leader for a reason. Its competitive advantage is its renewable energy portfolio. As of the end of September, NextEra had 34 gigawatts (GW) of clean-energy capacity in operation, including 23 GW of wind capacity and 6 GW of solar capacity. Both figures are high-water marks globally. Though undertaking clean-energy projects has been costly, it's benefited NextEra's bottom line in a big way. Electricity generation costs have tumbled, leading to a compound annual adjusted earnings growth rate of just shy of 10% over the previous 10 years. By comparison, most electric utilities are growing their earnings per share by a low-single-digit percentage on an annualized basis. In addition to its world-leading renewables segment, NextEra's traditional utility operations are regulated. In other words, it can't raise rates on its customers without the approval of state-level utility commissions (i.e., the Florida Public Service Commission). While this might sound like a nuisance, it's actually a benefit in disguise. Regulated utilities avoid wholesale pricing, which makes their operating cash flow highly predictable. Lastly, NextEra Energy is historically inexpensive. Shares are currently trading at 17 times forward-year earnings, which is the cheapest they've been since 2015. Lovesac A second no-brainer stock to buy with $300 right now is small-cap furniture retailer Lovesac (NASDAQ: LOVE). Like most growth stocks, Lovesac was clobbered during the 2022 bear market. Fears of a potential U.S. recession clearly have investors concerned. If economic growth stalls or reverses, it's expected that consumers will pare back their discretionary spending in a highly cyclical industry (furniture). But what's interesting about Lovesac is that it's nothing like traditional furniture retailers. This is a company that's completely differentiating itself with its products and omnichannel sales presence. Lovesac's primary means of standing out from the rest of the pack is its furniture. While originally known for its beanbag-style chairs called "sacs," approximately 90% of net sales now derive from modular couches known as "sactionals." Sactionals can be rearranged dozens of ways to fit most living spaces, and they come with over 200 different cover choices and a multitude of upgrade options (e.g., built-in surround sound). Best of all, the yarn used in these covers is made entirely from recycled plastic water bottles. This makes sactionals unique in their functionality, optionality, and eco-friendliness. As you can probably guess from these options, sactionals are pricier than traditional sofas and sectional couches. But that's just fine with Lovesac. The company predominantly targets middle- to upper-income clientele with its products. The advantage of this approach is that high-earners are less likely to alter their spending habits during periods of economic instability. In short, it leads to predictable sales and cash flow for Lovesac. The other differentiating factor with Lovesac is its omnichannel sales platform. While it does have a physical store presence in most U.S. states, it was able to shift a significant percentage of its sales online during the COVID-19 pandemic. Additionally, it operates popup showrooms and has partnerships with a couple of brand-name businesses -- Best Buy and Costco Wholesale. These alternative channels are improving brand awareness and, most importantly, keeping overhead costs low. The end result should be a consistently higher operating margin than its peers. Sporting a long-term double-digit growth rate and a forward price-to-earnings ratio below 10, Lovesac is a screaming buy. Image source: Getty Images. Alibaba The third no-brainer stock that's begging to be bought with $300 right now is China-based e-commerce company Alibaba (NYSE: BABA). Perhaps the biggest thorn in Alibaba's side has been the tightening oversight of Chinese regulators. In 2021, the company was hit with a record fine of $2.75 billion by regulators for its anti-monopoly practices. Alibaba is the leading online marketplace in China. If regulators continue to tighten their grip, its growth rate could be adversely impacted. Alibaba is also dealing with the recent departure of Daniel Zhang. Zhang was Alibaba's CEO for eight years, and he'd recently stepped down from the CEO role to head the company's burgeoning cloud services division. Investors are visibly concerned about the direction of the company with its key figurehead of nearly a decade no longer there. Despite these challenges, there are a few reasons for investors to be increasingly optimistic about Alibaba's future. To begin with, it absolutely dominates the e-commerce arena in China. Based on data from the International Trade Administration, Alibaba's online shopping sites Taobao and Tmall accounted for almost 51% of e-commerce market share in the world's No. 2 economy by gross domestic product. Considering that China's economy is still bouncing back from three years of supply chain constraints during the COVID-19 pandemic, there's reason to believe e-commerce has a lengthy upward trajectory. Another reason for investors to be excited for Alibaba's future is its cloud services segment. Estimates from tech-analysis company Canalys from the March-ended quarter show Alibaba accounts for 34% of cloud infrastructure service spending in China. That's nearly double its next-closest competitor. Enterprise cloud spending is still in its early stages, which suggests there's a sustained double-digit growth opportunity for the company to take advantage of. Alibaba wouldn't make the list of no-brainer buys if it wasn't also historically inexpensive. Even factoring in the added regulatory risks of putting your money to work in China, Alibaba is jaw-droppingly cheap at roughly 7 times forward-year earnings. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Sean Williams has positions in Lovesac and NextEra Energy. The Motley Fool has positions in and recommends Best Buy, Costco Wholesale, and NextEra Energy. The Motley Fool recommends Alibaba Group and Lovesac. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-05	NEE	Before buying the dip on NextEra Energy (NYSE: NEE) or subsidiary NextEra Energy Partners (NYSE: NEP), Motley Fool contributors Jason Hall and Tyler Crowe think investors should take a look at Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) and Allete (NYSE: ALE), an independent power producer and Midwestern utility that could yield greater returns. Stock prices used were from the morning of Nov. 28, 2023. The video was published on Dec. 2023. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Jason Hall has positions in Clearway Energy and NextEra Energy Partners. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-04	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. UNIVERSE: PASS NET PAYOUT YIELD: FAIL QUALITY AND DEBT: PASS VALUATION: PASS RELATIVE STRENGTH: PASS SHAREHOLDER YIELD: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-03	NEE	Energy stocks have woefully underperformed this year. While the S&P 500 is up more than 19%, the energy stocks in that index are down by an average of 2%. That underperformance has many energy stocks looking like relatively compelling investment opportunities these days. Enterprise Products Partners (NYSE: EPD), Kinder Morgan (NYSE: KMI), and NextEra Energy (NYSE: NEE) stand out to a few Fool.com contributors as the top ones to buy this December. Here's why they think investors should scoop up shares this month. If you like passive income, Enterprise has you well covered Reuben Gregg Brewer (Enterprise Products Partners): If there's one thing that gets a dividend investor's blood pumping, it's a fat yield, like the 7.5% yield on offer from Enterprise Products Partners. The only thing investors need to be careful about when looking at mouthwatering yields like that is whether they're sustainable. Enterprise's yield is very well covered. For starters, the North American midstream giant operates a portfolio of energy infrastructure assets that would be virtually impossible to replace or replicate. Those assets are mostly fee driven as well, so the cash flows they produce are highly reliable despite the inherent volatility of oil and natural gas prices. This is why master limited partnership (MLP) Enterprise has managed to increase its distribution annually for 25 consecutive years. But the real strength of the distribution shows up in two other ways. First, Enterprise's balance sheet is investment grade-rated. In other words, it's financially strong. Second, its distributable cash flows cover the distribution 1.7 times over. That leaves a huge amount of room for adversity before the distribution would be at risk. And even then, Enterprise could lean on its balance sheet for a little while to support the payment if it had to. There's no telling how long Enterprise's yield will be as lofty as 7.5%, so investors looking for a reliable income option should probably act sooner rather than later -- before the rest of Wall Street catches on to the story. Flexing its flexibility Matt DiLallo (Kinder Morgan): Kinder Morgan has spent several years shoring up its balance sheet. The natural gas pipeline giant has sold assets and used excess cash flow to reduce its debt. It has cut its debt by more than $11 billion since 2015, reducing its leverage ratio by 23%. It's on track to end this year with a leverage ratio of 4.0, well below its long-term target of 4.5. That has given the company lots of financial flexibility. It recently found an opportunity to put some of its financial capacity to work. It agreed to buy STX Midstream from NextEra Energy Partners in a $1.8 billion deal. Kinder Morgan capitalized on the opportunity to buy a high-quality natural gas pipeline business from NextEra Energy Partners, which needs cash to redeem some maturing financing. It's getting a good deal on a highly strategic asset. The company expects STX Midstream to be accretive to its cash flow per share. Meanwhile, it's only using a fraction of its financial capacity since the acquisition will increase its leverage ratio by 0.1 times in the near term. So it still has ample financial flexibility to make additional deals. Kinder Morgan should also benefit from a growing slate of high-return expansion projects. It ended the third quarter with $3.8 billion of expansions under construction that should come online over the next few years. They'll supply the company with incremental income as they enter service. Those two growth drivers should increase the company's cash flow. That will give it more money to pay dividends. Kinder Morgan has given its investors a raise for six straight years and currently offers a 6.4%-yielding payout. That combination of income and growth puts Kinder Morgan in a solid position to produce attractive total returns in 2024 and beyond. Time to get greedy Neha Chamaria (NextEra Energy): After plunging dramatically toward the end of September, shares of NextEra Energy have regained some ground in recent weeks. I expect the stock to maintain its momentum and believe it's a solid buy this month. That's because NextEra Energy has its growth plans in place, and some of the fears about the company appear unwarranted. NextEra Energy stock slumped after its majority-owned limited partnership company, NextEra Energy Partners, slashed its dividend growth goal through 2026 in the wake of higher interest rates that made funding for growth difficult. Investors feared two things: NextEra Energy could be next in line to cut its growth forecast, and lower income in the form of dividends from the limited partnership could hit its bottom line. During its most recent earnings release, though, NextEra Energy said it was confident of growing its adjusted earnings per share (EPS) by 6% to 8% through 2026 off its 2024 estimate and expects to increase its dividend annually by around 10% at least through 2024. Management even stated it would be "disappointed" if the company didn't grow at the higher end of its range through 2026. NextEra Energy expects its planned investments in its utility, Florida Power & Light (FPL), and renewable energy to drive growth. While FPL expects to invest up to $34 billion between 2022 and 2025, NextEra Energy's clean energy arm already has a humongous backlog of over 21 gigawatts. For a company that's still growing its cash flows and dividends steadily and prioritizes a healthy balance sheet, NextEra Energy looks like the kind of company that should not only be able to navigate challenging times but also reward shareholders along the way. With the utility stock now languishing at three-year lows and yielding 3.2%, it makes for a solid long-term buy now. 10 stocks we like better than Enterprise Products Partners When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Enterprise Products Partners wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Matthew DiLallo has positions in Enterprise Products Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners. The Motley Fool has positions in and recommends Kinder Morgan and NextEra Energy. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-03	NEE	2023 has nearly come and gone. But before turning your calendar to the new year, it's worth considering top stocks that could be great buying opportunities. The end of the year is the perfect time to reflect on your financial goals, see where your portfolio has been and where you want it to go, and align your risk tolerance with your investments. NextEra Energy (NYSE: NEE), Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) Garmin (NYSE: GRMN), Confluent (NASDAQ: CFLT), and Chevron (NYSE: CVX) are five completely different but worthy stocks that may help you reach your goals. Here's why each stock is worth buying in December. Image source: Getty Images. This top dividend growth stock is now cheap Neha Chamaria (NextEra Energy): With the utility sector taking a hit in the wake of higher interest rates, shares of the largest electric utility in the U.S., NextEra Energy, have slumped to levels last seen in 2020. The steep fall has driven NextEra Energy's dividend yield north of 3%. The stock now trades substantially below five-year averages for nearly every important valuation metric, including price-to-earnings, price-to-cash flow, and price-to-book ratio. I believe it's a compelling opportunity to buy the stock, given NextEra Energy's foothold in the industry, growth plans, and strong financials. At its recent earnings conference call, NextEra Energy expressed confidence in its ability to grow in the years to come, driven by its two electric utility and renewable energy businesses. Florida Power & Light is the U.S.'s largest utility and expects to invest $32 billion to $34 billion in infrastructure, including solar, between 2022 and 2025. Meanwhile, NextEra Energy believes its clean energy arm, Energy Resources, is just getting started. Energy Resources is already the world's leading producer of energy from wind and solar, with nearly 34 gigawatts (GW) in operation and more than 21 GW in backlog. Driven by its investments in utility and renewable energy, NextEra Energy is confident of growing its adjusted earnings per share (EPS) by 6% to 8% annually through 2026. It also expects to increase its dividend by 10% through next year, at least for now. Some investors fear NextEra Energy will cut down its dividend growth pace after a similar recent move by its limited partnership, NextEra Energy Partners (NYSE: NEP). I still believe a double-digit dividend raise in 2024 is feasible. NextEra Energy's cash flows are growing steadily, and it doesn't expect any effect on its adjusted EPS in 2023 and 2024 if interest rates rise by another 50 basis points. The company's balance sheet is in good shape, and I think this alone could play a huge role in helping NextEra Energy navigate any storm. Too great an opportunity to ignore Keith Speights (Brookfield Renewable): It hasn't been a fantastic year for Brookfield Renewable. Shares of the renewable energy provider are in negative territory with 2023 winding down, even as the major market indexes have delivered solid gains. However, I think that Brookfield Renewable presents too great an opportunity for investors to ignore. The company expects to generate average annual total returns of between 12% and 15% over the long term. At the low end of that range, an investment will roughly double every six years. I suspect that most investors would be quite happy with that kind of performance. Of course, setting a target is different than actually achieving it. But I'm confident that Brookfield Renewable will be able to do what it says it will do. In my view, the company probably has the clearest path to delivering double-digit total returns, compared to any other on the market. It's abundantly evident that the demand for renewable energy sources -- especially onshore wind and solar -- will continue to increase significantly. There's simply no way that countries and major corporations around the world will be able to reach their carbon reduction goals without a lot more renewable energy. Brookfield Renewable is in a great position to help meet this rising demand. Its operational capacity currently totals around 31.5 gigawatts. The company's development pipeline is more than 4.5 times that capacity. CEO Connor Teskey noted in Brookfield Renewable's third-quarter earnings conference call that the company continues to see plenty of attractive acquisition opportunities. I especially like Brookfield Renewable's distribution yield of over 5%. The company plans to increase its distribution by 5% to 9% per year. With this strong distribution and exceptional growth prospects, this stock looks like a no-brainer to buy in December. Navigate toward higher returns Demitri Kalogeropoulos (Garmin): There's a lot to love about Garmin stock right now. Sure, the tech hardware giant went through a rough sales period following the pandemic. Revenue declined 6% last year following a 19% surge in 2021. That marked the first time in seven years that Garmin hasn't steadily boosted its sales. The tech company is thankfully returning to its more usual, and impressive, expansion pace right now. Sales were up 12% last quarter, and operating profit landed at a robust 21% of sales. Garmin's management team took the opportunity to raise their 2023 outlook, saying in early November that sales should rise by about 5% this year to $5.2 billion. I like Garmin for its diverse portfolio that spans consumer-focused devices like smart watches and fitness trackers, but also higher-priced products like marine and aviation navigation platforms. The company has demonstrated a knack for innovating across these varied segments, and the payoff has been rising sales and market-beating profitability over the years. It's true that the stock jumped in response to the good news that investors have seen in Garmin's results this year. But there's still room to enjoy solid returns by holding shares over the long term. At below 5 times annual sales, Garmin's price-to-sales valuation is still far less than the pandemic peak of close to 7 times sales. But the business looks very strong as it aims to conclude another year of sales growth and profit expansion in 2023. Toss in a modest dividend payment, and Garmin should help investors find their way to market-thumping returns. Confluent: The unsung hero of secure data messaging Anders Bylund (Confluent): When I talk about streaming services, the conversation usually centers on media streaming experts such as Netflix (NASDAQ: NFLX). These innovators turned the entertainment world upside down over the last decade or so, and digital streaming is the default method of video and music delivery for many people in 2023. Confluent runs a streaming service too, but a very different one.The Confluent Kafka suite is a system that carries any kind of data from a publishing hub to any number of delivery endpoints. The actual stream can be anything, including plain text, digital video, or raw binary data. Businesses use it to manage everything from log files and real-time sensor readings to remote backups and ultra-secure data transfers. This reliable connectivity plays a central role in the Internet of Things and Web3 revolutions, shepherding the right data to the right destination -- millions or even billions of times per second. For classical Unix nerds like myself, you can think of Kafka as a modernized version of MQ (formerly MQSeries). This stock is a fairly fresh face, entering the public market as recently as 2021. However, the company has been around since 2014, when three original inventors of the open-source Apache Kafka system wanted to commercialize their powerful messaging solution. A decade later, Confluent provides enterprise-ready features in addition to the basic Apache Kafka solution, selling software subscriptions and technical support services. The business is absolutely humming, as you'd expect from a cornerstone of several next-generation technology trends. Revenues rose 32% year over year in the recently reported third quarter of 2023. The quarter was profitable on an adjusted basis, exceeding Wall Street's consensus estimates across the board. That's business as usual, apart from the newfound profitability. Confluent has a firm history of beating expectations and delivering robust growth. And don't forget about the media-streaming giants -- as it turns out, Netflix relies on Kafka to manage its content production spending, real-time viewing data, and financial forecasting. Yes, that's a diverse grab bag of data streams, highlighting just how flexible Kafka is. This little technology is going places. Yet, that surprising Q3 report triggered another sharp sell-off. Confluent's stock price plunged 42% lower the next day due to modest guidance for the next reporting period. Fourth-quarter sales were aimed at a 21% year-over-year increase along with continued bottom-line profits. But the top-line reading was below the average analyst projection at the time, and that was enough to inspire that dreadful price cut. Well, the lower share price is dreadful only if you own Confluent already and were planning to sell the stock someday soon. Otherwise, I see a fantastic buying opportunity here. The original founders still run the company, preserving Confluent's spirit of innovation and personal C-suite commitment to the company's success. This is a high-powered growth story addressing several important secular trends at once, with tremendous business growth to boot. Take advantage of the sell-off in Chevron Daniel Foelber (Chevron): Chevron more than doubled between the beginning of 2021 and the end of 2022. But this year hasn't been as kind to the energy giant. Chevron is down 20% year to date and is hovering around a 52-week low. The sell-off makes sense to some degree considering the stock's epic run-up leading into this year and the fact that oil prices have cooled off. But there's reason to believe Chevron is undervalued now. Big tech companies use their gobs of free cash flow to buy back stock and invest in growth, which allows them to take market share regardless of the market cycle. Chevron does the same thing, just with a degree of caution that's valued in the highly cyclical oil and gas industry. For example, Chevron continued to pay and raise its dividend even during the brutal oil and gas downturn of 2020, while also making some small but brilliant acquisitions in hindsight when so much of the industry was barely getting by. Today, Chevron has been able to flex its high profits and financial muscle to buy back a boatload of stock, and make its largest acquisition in over 20 years. Chevron has geographic exposure and diversification throughout the oil and gas value chain. It also has an incredibly strong balance sheet that was successfully stress-tested in 2020. It has paid and raised its dividend for 36 consecutive years and is probably going to announce another dividend raise in January. For now, the forward yield is 4.2%. Finally, Chevron stock is still cheap, sporting a price-to-earnings ratio of just 10.7. Add it all up, and there's a lot to like about Chevron stock this December. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Anders Bylund has positions in Netflix. Daniel Foelber has no position in any of the stocks mentioned. Demitri Kalogeropoulos has positions in Netflix. Keith Speights has positions in Brookfield Renewable and Brookfield Renewable Partners. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Renewable, Confluent, Garmin, Netflix, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners and Chevron. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-02	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. UNIVERSE: PASS NET PAYOUT YIELD: FAIL QUALITY AND DEBT: PASS VALUATION: PASS RELATIVE STRENGTH: PASS SHAREHOLDER YIELD: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	NEE	With interest rates on the rise, investors have been shifting away from income stocks and toward safer alternatives like CDs. That's opening up an opportunity for investors in the utility sector, which has been down and out of late. Near 52-week lows, Black Hills Corporation (NYSE: BKH), NextEra Energy (NYSE: NEE), and Duke Energy (NYSE: DUK) are three dividend stocks worth close looks today. 1. Black Hills is a Dividend King Although Black Hills' stock is down 30% over the past year, that may be opening up an opportunity to buy a Dividend King utility on the relative cheap. Indeed, the 4.8% dividend yield here is near its highest levels over the past decade. To be fair, the company has pulled back on capital spending this year so it can focus on reducing leverage. That's a decision at least partly tied to rising rates, and it might lead to a brief slowdown in growth. That said, there are a lot of things like about Black Hills. For starters, while small by utility standards (with a roughly $3.5 billion market cap), it operates in growing regions. To put a number on that, the utility estimates that its customer growth has been increasing nearly three times as fast as the average population growth in the United States. And while there has been a near-term slowdown in capital spending, the long-term outlook remains strong as the company continues to shift away from dirtier fuels (like coal) and more toward renewable power. All in all, Black Hills believes it can continue to grow earnings by 4% to 6% a year for the foreseeable future. That's not bad when you add in the historically high yield. 2. NextEra Energy is growing fast NextEra Energy's shares are lower by a touch more than 30% over the past year. The dividend has been increased annually for 29 consecutive years, and the 3.2% dividend yield is near its highest levels in a decade. This utility is among the largest in the sector, with a huge $118 billion market cap. It is also one of the most unique. That's because NextEra Energy is really two companies in one. The regulated utility piece of the puzzle, which includes Florida Power & Light, is a slow and steady business. But on top of that NextEra is rapidly expanding its footprint in the clean energy sector, where it is already one of the largest producers of solar and wind power in the world. That makes this stock more of a dividend growth investment -- the dividend has been increased at a 10%+ clip over the past decade. That is exceptionally high for a utility. And there's plenty more growth ahead on the clean energy front, given that NextEra has 34 gigawatts of power production today, which it hopes to roughly double by the end of 2026. 3. Duke Energy is refocusing on regulated assets Duke is a bit of an oddball here, because the stock is "only" down 14% or so over the past year. That's enough to put the stock near 52-week lows. But the story here is in many ways more positive. The yield is about 4.4%, and the dividend has been increased annually for 19 years. Essentially, Duke is a large and boring utility (the market cap is around $70 billion) that is getting even more boring. That's because the company recently sold its contract clean energy business so it can refocus on just its regulated assets, including investing in building clean power for its own portfolio. Regulated investments have to be approved by the government, but they generally have more predictable financial returns. If buying a small company like Black Hills isn't something you want to do, then Duke will probably fit the bill for your portfolio if you are a conservative dividend investor. Down but not out Although Duke, NextEra, and Black Hills are all out of favor with investors right now, they provide something that is essential to modern life. Add in regulated monopolies and you can see why long-term investors might view the recent poor stock performances as buying opportunities. NextEra is the best choice for dividend growth investors. Dividend King Black Hills is an attractive option if you favor stocks with long histories of annual dividend increases. And Duke is a slow and steady giant that has been working to increase the consistency of its performance by refocusing around regulated assets. All are near 52-week lows, and could be magnificent additions to your dividend portfolio. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 27, 2023 Reuben Gregg Brewer has positions in Black Hills. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Duke Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-12-01	NEE	If you are looking at thestock market todayand believe that it is about to break out into a new bull market (the criteria calls for a 20% advance from a bear low as well as hitting a new all-time high), then you might want to tilt your portfolio toward growth. There are a lot of ways to do that, but here are three stocks that you should strongly consider: NextEra Energy (NYSE: NEE), Rockwell Automation (NYSE: ROK), and Fastenal (NASDAQ: FAST). Here's why. 1. NextEra is more than a simple utility Buying NextEra Energy is really like buying two companies in one. The foundation for the business is the company's regulated utility operation (about 70% of the company). It is fairly boring, selling power largely in the state of Florida via Florida Power & Light. Being regulated, it has a monopoly in the areas it serves, but it has to get the rates it charges and its spending plans approved by the government. Slow and steady is the general path. On top of that business, NextEra is building a clean energy operation (about 30% of the company). It is already one of the largest providers of solar and wind power on the planet. This business has roughly 34 gigawatts of power today and management believes it will roughly double that by 2026. The long-term success of this approach shows up in the utility's dividend. Although the yield isn't huge at roughly 3.25%, the annual payment has been increased every year for 29 years. The annualized rate of increase over the past decade was about 10%, which is significant for a utility. If you are expecting a bright future, this foundational stock is one you'll want to watch closely. 2. Rockwell helps companies get more efficient Rockwell Automation's name is fairly descriptive of what it does -- helping companies incorporate automation technology into their operations. This is valuable in both good markets and bad ones and during periods of economic growth and contraction. The company has a long history of success behind it, highlighted by a streak of 14 consecutive annual dividend increases, with the dividend growing at roughly 9% per year over the past decade. The yield is roughly 1.8%. But the real story here today is that Rockwell Automation appears attractively priced. The industrial company's price-to-earnings, price-to-sales, and price-to-book value ratios are all below their five-year averages. Recessions can be hard, as companies pull back on capital spending. But when the spigots open back up, Rockwell Automation should be a huge beneficiary as companies look to reign in costs by using technology. Investors are likely to reward the stock when that happens. 3. Fastenal is integral to its customers The last name to consider is Fastenal, which sells fasteners and tools to industrial companies. It has been a very good business over time, with 24 years of annual dividend increases behind it. The average annual increase over the past decade was around 13.5%. The yield today is around 2.3%. There's two factors to like here. First, the yield is toward the high end of the stock's historical yield range. While it wouldn't be appropriate to say the stock is cheap, it does seem fairly valued. The second thing to appreciate is that Fastenal has been working to integrate itself into its customers' supply chains. That includes things like installing tool and part vending machines inside of a company's factory to, effectively, take over a company's parts supply chain system. It is hard to extract Fastenal once it is inside a company like that. What's impressive here, though, is that Fastenal doesn't take its importance for granted. For example, it increased its own inventory levels during the supply chain upheaval caused by the coronavirus pandemic. That depressed Fastenal's results, but ensured its customers could count on it. That's the type of company you want to own in good markets and bad ones. Three different types of stocks NextEra Energy is a utility with a growth focus that can provide a foundation for your portfolio. Rockwell Automation is currently out of favor with investors, but when Wall Street gets bullish again the company's focus on helping customers get more efficient will likely draw increasing attention. And Fastenal is increasingly integrated into its customers' businesses in a way that makes it difficult to replace -- it does well when they do well. If you are expecting a bull market, you should probably take a look at all three today. 10 stocks we like better than Rockwell Automation When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Rockwell Automation wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 27, 2023 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	NEE	NextEra Energy (NEE) closed at $58.48 in the latest trading session, marking a +0.21% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a rise of 1.47%, and the technology-dominated Nasdaq saw a decrease of 0.23%. The parent company of Florida Power & Light Co.'s shares have seen a decrease of 0.12% over the last month, not keeping up with the Utilities sector's gain of 7.47% and the S&P 500's gain of 10.72%. Market participants will be closely following the financial results of NextEra Energy in its upcoming release. On that day, NextEra Energy is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 3.92%. Alongside, our most recent consensus estimate is anticipating revenue of $6.24 billion, indicating a 1.23% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.12 per share and revenue of $27.65 billion, indicating changes of +7.59% and +31.93%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. NextEra Energy is currently a Zacks Rank #3 (Hold). Digging into valuation, NextEra Energy currently has a Forward P/E ratio of 18.7. This indicates a premium in contrast to its industry's Forward P/E of 15.58. We can also see that NEE currently has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.88. The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	NEE	For Immediate Release Chicago, IL – November 30, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald's Corporation MCD, Amgen Inc. AMGN, NextEra Energy, Inc. NEE, General Mills, Inc. GIS and Take-Two Interactive Software, Inc. TTWO. Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for McDonald's, Amgen and NextEra The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including McDonald's Corporation, Amgen Inc. and NextEra Energy, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> McDonald's shares have performed roughly in-line with the Zacks Retail - Restaurants industry this year (+6.4% vs. +6.2%). The company’s top and the bottom line increased on a year-over-year basis in the last quarterly report on October 30th. Robust comparable sales, menu price increase and positive guest counts backed the upside. Also, its emphasis on digital initiatives, campaigns and loyalty programs bodes well. During the quarter, digital sales came in at $9 billion, contributing 40% to the company’s system-wide sales. Given the rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods. Earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism. However, inflationary pressures and stiff competition are primary headwinds. (You can read the full research report on McDonald’s here >>>) Shares of Amgen have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date basis (+4.6% vs. -22.9%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters. The recently completed acquisition of Horizon Therapeutics is expected to enhance Amgen’s growth prospects. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months. However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. (You can read the full research report on Amgen here >>>) Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the year-to-date basis (-28.5% vs. -9.5%). Due to the company’s nature of its business, it is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings. Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity. NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves. The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business. (You can read the full research report on NextEra Energy here >>>) Other noteworthy reports we are featuring today include General Mills, Inc. and Take-Two Interactive Software, Inc. Why Haven’t You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-30	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. UNIVERSE: PASS NET PAYOUT YIELD: FAIL QUALITY AND DEBT: PASS VALUATION: PASS RELATIVE STRENGTH: PASS SHAREHOLDER YIELD: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	NEE	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in NextEra Energy Inc (Symbol: NEE), where a total volume of 59,629 contracts has been traded thus far today, a contract volume which is representative of approximately 6.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.2% of NEE's average daily trading volume over the past month, of 11.6 million shares. Especially high volume was seen for the $77.50 strike put option expiring January 19, 2024, with 11,128 contracts trading so far today, representing approximately 1.1 million underlying shares of NEE. Below is a chart showing NEE's trailing twelve month trading history, with the $77.50 strike highlighted in orange: RH (Symbol: RH) saw options trading volume of 3,207 contracts, representing approximately 320,700 underlying shares or approximately 50.3% of RH's average daily trading volume over the past month, of 637,690 shares. Particularly high volume was seen for the $232.50 strike put option expiring December 08, 2023, with 159 contracts trading so far today, representing approximately 15,900 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $232.50 strike highlighted in orange: And PURE Storage Inc (Symbol: PSTG) saw options trading volume of 11,394 contracts, representing approximately 1.1 million underlying shares or approximately 49.9% of PSTG's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $30 strike put option expiring January 19, 2024, with 1,353 contracts trading so far today, representing approximately 135,300 underlying shares of PSTG. Below is a chart showing PSTG's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for NEE options, RH options, or PSTG options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Institutional Holders of Brown-Forman Funds Holding BYD HTBX Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	NEE	Wednesday, November 29, 2023 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including McDonald's Corporation (MCD), Amgen Inc. (AMGN) and NextEra Energy, Inc. (NEE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> McDonald's shares have performed roughly in-line with the Zacks Retail - Restaurants industry this year (+6.4% vs. +6.2%). The company’s top and the bottom line increased on a year-over-year basis in the last quarterly report on October 30th. Robust comparable sales, menu price increase and positive guest counts backed the upside. Also, its emphasis on digital initiatives, campaigns and loyalty programs bodes well. During the quarter, digital sales came in at $9 billion, contributing 40% to the company’s system-wide sales. Given the rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods. Earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism. However, inflationary pressures and stiff competition are primary headwinds. (You can read the full research report on McDonald’s here >>>) Shares of Amgen have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date basis (+4.6% vs. -22.9%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters. The recently completed acquisition of Horizon Therapeutics is expected to enhance Amgen’s growth prospects. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months. However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. (You can read the full research report on Amgen here >>>) Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the year-to-date basis (-28.5% vs. -9.5%). Due to the company’s nature of its business, it is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings. Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity. NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves. The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business. (You can read the full research report on NextEra Energy here >>>) Other noteworthy reports we are featuring today include The Cigna Group (CI), General Mills, Inc. (GIS) and Take-Two Interactive Software, Inc. (TTWO). Director of Research Sheraz Mian Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Solid Comps Growth Aid McDonald's (MCD) Amid High Costs Amgen (AMGN) Key Drugs to Drive Sales Amid Biosimilar Woes NextEra (NEE) Gains from Steady Investment, Renewable Focus Featured Reports Cigna (CI) Benefits from Growing Revenues, Strong Cash Flows Per the Zacks analyst, Cigna gains from a healthy revenue stream, driven by buyouts and enhanced products suite. Further, its cash-generating abilities enable investment in the business. General Mills (GIS) Gains From Focus on Accelerate Strategy Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio. Portfolio Strength, Digital Revenues Steers Take-Two (TTWO) Per the Zacks analyst, Take-Two's digital revenues is driven by solid demand for NBA, Red Dead Redemption and Grand Theft Auto portfolio of games. Solid Portfolio, Capital-Recycling to Aid Host Hotels (HST) Per the Zacks analyst, Host Hotels' (HST) portfolio of upscale hotels across lucrative markets and capital-recycling moves bode well. Yet, a slower recovery in group and business travel demand ails. Zillow Group (ZG) Set to Ride on Holistic Growth Strategy Per the Zacks analyst, Zillow Group is poised to benefit from high visitor rate, frequent product launches and growing Agent business. A holistic growth strategy with key acquisitions is a tailwind. Patterson-UTI (PTEN) to Gain from NexTier Merger The Zacks analyst believes that Patterson-UTI Energy's merger with NexTier Oilfield Solutions will be accretive to its earnings but is worried over the recent dip in North American rig count. Solid Mine Performances Aid B2Gold (BTG) Amid Cost Woes Per the Zacks analyst, B2Gold's results will benefit from pickup in mine performances. However, elevated costs are likely to put a dent on the margins. New Upgrades Strong Clientele & Bookings Aids GoDaddy's (GDDY) Prospects Per the Zacks analyst, GoDaddy benefits from strong bookings primarily driven by strong customer additions and price increases in various domains. W.R. Berkley (WRB) Set to Grow on Solid Insurance Business Per the Zacks analyst, W.R. Berkley's Insurance business is set to grow on rate increases, reserving discipline, and improving premiums from international unit supported by the emerging markets. Solid E-commerce Momentum to Bolster Hibbett's (HIBB) Sales Per the Zacks analyst, Hibbett has been making progress on e-commerce and selective store expansion. Improved inventory, website traffic and digital customer experience has been yielding results. New Downgrades Landstar System (LSTR) Reels Under Freight-Driven Woes The Zacks analyst is worried about below-par volumes due to the weak freight demand scenario. High operating expenses due to escalated fuel costs represent another headwind. High Expenses & Elevated Leverage to Ail American Axle (AXL) The Zacks analyst is worried about American Axle's expected high research & development expenses to develop technologically advanced products. A high debt-to-capital ratio of 0.82 is also a concern. Lower Margins and Stiff Competition Ail Walgreens (WBA) The Zacks analyst is worried about increased reimbursement pressure and generic drug cost inflation that have been hampering Walgreens' margin on a significant level. Stiff rivalry remains a concern. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	NEE	Investors in NextEra Energy Inc (Symbol: NEE) saw new options become available today, for the October 2024 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 324 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NEE options chain for the new October 2024 contracts and identified one put and one call contract of particular interest. The put contract at the $57.50 strike price has a current bid of $3.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $57.50, but will also collect the premium, putting the cost basis of the shares at $54.50 (before broker commissions). To an investor already interested in purchasing shares of NEE, that could represent an attractive alternative to paying $58.97/share today. Because the $57.50 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 5.22% return on the cash commitment, or 5.88% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for NextEra Energy Inc, and highlighting in green where the $57.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $4.50. If an investor was to purchase shares of NEE stock at the current price level of $58.97/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.38% if the stock gets called away at the October 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NEE shares really soar, which is why looking at the trailing twelve month trading history for NextEra Energy Inc, as well as studying the business fundamentals becomes important. Below is a chart showing NEE's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.63% boost of extra return to the investor, or 8.60% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $58.97) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of S.A.F.E. Dividend Stocks » Also see: Earnings Surprises AQMS Historical Stock Prices ARIS Price Target The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-29	NEE	Here's a revealing data point: older Americans are scared more of outliving wealth than of death itself. And retirees have good reason to be worried about making their assets last. People are living longer, so that money has to cover a longer period. Making matters worse, income generated using tried-and-true retirement planning approaches may not cover expenses these days. That means seniors must dip into principal to meet living expenses. The tried-and-true retirement investing approach of yesterday doesn't work today. Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over. While this yield reduction may not seem drastic, it adds up: for a $1 million investment in 10-year Treasuries, the rate drop means a difference in yield of more than $1 million. And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035. So what can retirees do? You could dramatically reduce your expenses, and go out on a limb hoping your Social Security benefits don't diminish. On the other hand, you could opt for an alternative investment that gives a steady, higher-rate income stream to supplant lessening bond yields. Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend growth. Many stocks increase dividends over time, helping to offset the effects of inflation. Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. Cummins (CMI) is currently shelling out a dividend of $1.68 per share, with a dividend yield of 3%. This compares to the Automotive - Internal Combustion Engines industry's yield of 0% and the S&P 500's yield of 1.71%. The company's annualized dividend growth in the past year was 7.01%. Check Cummins (CMI) dividend history here>>> Magna (MGA) is paying out a dividend of $0.46 per share at the moment, with a dividend yield of 3.42% compared to the Automotive - Original Equipment industry's yield of 0% and the S&P 500's yield. The annualized dividend growth of the company was 2.22% over the past year. Check Magna (MGA) dividend history here>>> Currently paying a dividend of $0.47 per share, NextEra Energy (NEE) has a dividend yield of 3.22%. This is compared to the Utility - Electric Power industry's yield of 3.59% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 10%. Check NextEra Energy (NEE) dividend history here>>> But aren't stocks generally more risky than bonds? The fact is that stocks, as an asset class, carry more risk than bonds. To counterbalance this, invest in superior quality dividend stocks that not only can grow over time but more significantly, can also decrease your overall portfolio volatility with respect to the broader stock market. A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects of inflation on your potential retirement income. Thinking about dividend-focused mutual funds or ETFs? Watch out for fees. If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges. Bottom Line Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cummins Inc. (CMI) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Magna International Inc. (MGA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. UNIVERSE: PASS NET PAYOUT YIELD: FAIL QUALITY AND DEBT: PASS VALUATION: PASS RELATIVE STRENGTH: PASS SHAREHOLDER YIELD: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-28	NEE	Launched on 12/16/1998, the Utilities Select Sector SPDR ETF (XLU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%. Index Details The fund is sponsored by State Street Global Advisors. It has amassed assets over $13.52 billion, making it the largest ETF attempting to match the performance of the Utilities - Broad segment of the equity market. XLU seeks to match the performance of the Utilities Select Sector Index before fees and expenses. The Utilities Select Sector Index seeks to provide an effective representation of the Utilities sector of the S&P 500 Index. Costs Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 3.38%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Utilities sector--about 100% of the portfolio. Looking at individual holdings, Nextera Energy Inc (NEE) accounts for about 12.60% of total assets, followed by Southern Co/the (SO) and Duke Energy Corp (DUK). The top 10 holdings account for about 58.40% of total assets under management. Performance and Risk The ETF has lost about -8.74% and is down about -8.50% so far this year and in the past one year (as of 11/28/2023), respectively. XLU has traded between $56.19 and $72.67 during this last 52-week period. The ETF has a beta of 0.56 and standard deviation of 18.04% for the trailing three-year period, making it a medium risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers. Alternatives Utilities Select Sector SPDR ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XLU is a sufficient option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space. Fidelity MSCI Utilities Index ETF (FUTY) tracks MSCI USA IMI Utilities Index and the Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index. Fidelity MSCI Utilities Index ETF has $1.36 billion in assets, Vanguard Utilities ETF has $4.79 billion. FUTY has an expense ratio of 0.08% and VPU charges 0.10%. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Vanguard Utilities ETF (VPU): ETF Research Reports Fidelity MSCI Utilities Index ETF (FUTY): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many investors dream of making passive cash flow from dividend stocks. The great thing about these investments is that they provide passive income without any work. With a rental property, you have to stay on top of tenants and property management. Dividend investing is much more passive and only involves monitoring your portfolio from time to time. Many dividend stocks for passive income also increase their payouts each year. If you earned $1,000 in passive cash flow this year, it might turn into $1,100 the following year due to reinvestments and dividend hikes. That doesn’t even include if you put more money into those same stocks. Investors seeking passive cash flow have to narrow their focus to the top dividend stocks for passive income. These are three stocks you may want to consider for passive income. Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is a semiconductor giant that benefits from the growing importance of artificial intelligence. However, this innovative technology isn’t Broadcom’s only strength. Semiconductors are in just about every piece of technology. Computers, smartphones, appliances, televisions, video game consoles and other tech rely on semiconductors. They are the building blocks for many things, and Broadcom continues to benefit from this industry. Shares have gained an incredible 75% year-to-date and are up by 308.47% over the past five years. The recent surge has lowered the dividend yield but it still sits at 1.90%. Broadcom has done a great job of rewarding long-term investors with frequent double-digit dividend growth rates. The company hiked its quarterly dividend from $4.10 per share to $4.60 per share, marking a 12.2% year-over-year increase. Broadcom has high-profit margins and regularly achieves revenue and earnings growth. The company is a leader in the industry and can generate plenty of passive cash flow in the years to come. Waste Management (WM) Source: shutterstock.com/PhotoByToR Companies come and go, but waste is forever. People have plenty of trash that needs to be managed. Waste Management (NYSE:WM) is one of the companies that manage trash through its environmental services. Shares are up by 9.2% year-to-date and have gained 82.9% over the past five years. The company currently has a 1.65% dividend yield and a good history of dividend hikes. This year, the company raised its quarterly dividend from $0.65 per share to $0.70 per share. It’s a 7.7% year-over-year increase. Waste Management closed the third quarter with a $1.63 diluted EPS. That’s close to 6% higher compared to last year and is more than enough to support the company’s dividend. The big gap between the dividend per share and the EPS supports more dividend hikes. Combine that with a growing business, and long-term investors can greatly benefit from this stock. Waste Management isn’t the type of stock to outperform high-flying growth stocks. However, it is a reliable pick during volatile, uncertain times. People will always need companies like Waste Management to address waste in various areas. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com NextEra Energy (NYSE:NEE) has been a steady performer in the clean energy industry. The company operates in several states but focuses on Florida. NextEra Energy’s Florida Power & Light Company division is the largest electric utility in the United States. NextEra Energy has consistently raised the dividend at an impressive rate. This year, the company raised its quarterly dividend from $0.425 to $0.4675 which is a 10% year-over-year increase. The company has regularly initiated double-digit year-over-year dividend hikes. Shares have hit a recent speed bump due to concerns about slower growth in the upcoming quarters. The dividend growth is likely to take a hit in the short run due to elevated interest rates and fewer investment opportunities for the company. NextEra Energy is still achieving year-over-year revenue growth. The stock has endured a harsh 32% year-to-date drop but is up by 28% over the past five years. The recent downward pressure on the stock price has raised the dividend to 3.30%. NEE also trades at a 15 P/E ratio. Although the short-term price performance doesn’t look reassuring, NextEra Energy is still an industry leader that can benefit long-term investors. The big drop presents a buying opportunity for people who can hold on for a few years. On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Want Passive Cash Flow? 3 Dividend Stocks to Consider appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	NEE	The energy market is undergoing a multi-decade transition to cleaner energy. This megatrend should power growth for companies investing in clean energy in the years ahead. Enbridge (NYSE: ENB), Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), and NextEra Energy Partners (NYSE: NEP) stand out to a few Fool.com contributors for their investments in cleaner energy. It drives their belief that these energy stocks can make their investors richer in the coming year and beyond. Enbridge is buying three utilities in 2024 Reuben Gregg Brewer (Enbridge): Canadian midstream giant Enbridge is a bit of an odd duck. While it owns energy infrastructure in both the oil and natural gas spaces, it also owns a natural gas utility and clean energy assets. The big picture is that the company is transitioning its energy business along with the world's shift toward renewable power. But there's a nuance here, because management believes that natural gas will be a key transition fuel. The problem is that building new natural gas pipelines has become a lot more difficult in recent years, limiting growth opportunities for companies like Enbridge. To adjust, the company just agreed to buy three regulated natural gas utilities from Dominion Energy. These are fairly boring assets, but regulated utilities have predictable investment needs and returns set by regulators. So Enbridge is getting more boring, but it is, at the same time, solidifying its long-term capital investment opportunities. The three purchases will be staggered throughout 2024, so the year will be something of a transition period. Investors have taken a dim view of the near-term uncertainty that will likely cause, pushing the shares lower and the yield up to a very attractive 7.7%. That said, Enbridge believes it can continue to maintain its financial strength and long-term growth targets after the three utilities have been bought, with more certainty of achieving its goal of 5% growth in earnings before interest, taxes, depreciation, and amortization. The dividend should grow by a similar amount, making this a strong income and growth investment in the energy sector. Positioned to produce a powerful total return Matt DiLallo (Brookfield Renewable): Brookfield Renewable has been a very enriching investment over the years. The renewable energy juggernaut has delivered an 11.7% annualized total return since its formation a dozen years ago. That has grown a $1,000 investment into nearly $3,750. The company's consistent growth has helped power those strong returns. It has grown its funds from operations (FFO) at a more than 10% annual pace since its formation while increasing its dividend at a 6% compound annual growth rate. Brookfield Renewable could grow even faster in the future. It sees a trio of organic growth drivers (inflation-linked rate increases, margin enhancement activities, and development projects) powering 7% to 12% annual FFO per share growth through 2028. Those organic growth drivers support Brookfield's view that it can grow its dividend by 5% to 9% per year. Meanwhile, the company believes that M&A activities could add more than 9% to its FFO per share each year. Brookfield has been a very active acquirer this year. It recently closed several deals and has another sizable one in the pipeline. That gives it lots of momentum heading into 2024. Investors are getting all that growth for a cheaper price. Shares of Brookfield Renewable currently sit more than 25% below their 52-week high. That lower price is a great entry point for this proven wealth creator. With its dividend yield currently over 5% and its business growing at a double-digit rate, Brookfield could produce total annual returns in the mid-teens from here. A beaten-down stock worth a watch Neha Chamaria (NextEra Energy Partners): NextEra Energy Partners' shares have been hammered in recent weeks, with the company's decision to slow down its pace of dividend growth through 2026 catching investors off guard. Since NextEra Energy Partners primarily relies on funding to acquire and operate clean energy assets from its parent company, NextEra Energy, higher interest rates made such funding costlier and compelled the company to slash its annual dividend growth target from 12%-15% to a more sustainable 5%-8%. Yet with the clean-energy stock losing half its value in the past three months and cratering more than 65% this year, the sell-off appears overdone and there's a solid chance NextEra Energy Partners could rebound in 2024. That's because while it's true that the company could face near-term challenges to fund growth, it is already working on its new strategy to support growth and dividends. Specifically, NextEra Energy Partners will focus on two things to bolster cash flows over the next couple of years or so: repowering its existing wind energy assets for higher productivity and returns, and selling off its natural gas pipeline assets. To start, it has already finalized a deal to sell its Texas natural gas assets to energy infrastructure giant Kinder Morgan for $1.8 billion and has identified 740 megawatts of wind projects to repower. Let's also not forget that NextEra Energy Partners continues to have NextEra Energy's backing, with the parent even urging investors recently to not "lose sight" of the partnership's underlying portfolio. Highlighting how NextEra Energy Partners is the seventh-largest producer of wind and solar energy in the world, NextEra Energy management remains optimistic about its future and wants the partnership to be successful. With NextEra Energy Partners also confident of growing its annual dividend by around 6% through at least 2026, this beaten-down 14%-yielding stock could be a winner in 2024 and beyond. 10 stocks we like better than Enbridge When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Enbridge wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Enbridge, Kinder Morgan, NextEra Energy, and NextEra Energy Partners. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Dominion Energy and Enbridge. The Motley Fool has positions in and recommends Brookfield Renewable, Enbridge, Kinder Morgan, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners and Dominion Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-27	NEE	Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P 500 ETF (Symbol: VOO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $463.47 per unit. With VOO trading at a recent price near $418.37 per unit, that means that analysts see 10.78% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VOO's underlying holdings with notable upside to their analyst target prices are NextEra Energy Inc (Symbol: NEE), American Airlines Group Inc (Symbol: AAL), and Southwest Airlines Co (Symbol: LUV). Although NEE has traded at a recent price of $57.55/share, the average analyst target is 23.64% higher at $71.15/share. Similarly, AAL has 23.30% upside from the recent share price of $12.31 if the average analyst target price of $15.18/share is reached, and analysts on average are expecting LUV to reach a target price of $28.88/share, which is 16.10% above the recent price of $24.87. Below is a twelve month price history chart comparing the stock performance of NEE, AAL, and LUV: Below is a summary table of the current analyst target prices discussed above: NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET Vanguard S&P 500 ETF VOO $418.37 $463.47 10.78% NextEra Energy Inc NEE $57.55 $71.15 23.64% American Airlines Group Inc AAL $12.31 $15.18 23.30% Southwest Airlines Co LUV $24.87 $28.88 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research. 10 ETFs With Most Upside To Analyst Targets » Also see: SYNC Videos LPR Insider Buying USM Historical Stock Prices The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-26	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 55% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. UNIVERSE: PASS NET PAYOUT YIELD: FAIL QUALITY AND DEBT: PASS VALUATION: PASS RELATIVE STRENGTH: PASS SHAREHOLDER YIELD: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-24	NEE	Dividend stocks can be very rewarding investments. In addition to supplying investors with income, many top dividend stocks deliver solid stock price appreciation, driven by earnings growth. Those total returns can add up over time. Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Realty Income (NYSE: O), and NextEra Energy (NYSE: NEE) have made their investors a lot of money over the years. Despite their strong performances, all three are currently on sale. That makes now a great time to buy these wealth-creating dividend stocks. Tossed in the bargain bin Shares of Brookfield Infrastructure currently sit about 35% below their 52-week high, with the bulk of that decline coming in the last few months. Because of that, the global infrastructure company currently sells for a very cheap price. The company expects to produce about $3 per share of funds from operations (FFO) this year. With the stock recently in the low $30s, it trades at slightly more than 10 times its earnings. That's dirt cheap, considering the S&P 500 index currently fetches about 20 times its earnings. That's a fantastic price to pay for this wealth-creating machine. Since its formation in 2008, Brookfield Infrastructure has produced a 14% annualized total return. That has trounced the S&P 500's 10% annualized total return during that period. Powering that market-beating return has been Brookfield's growth. It has grown its earnings at an 11% compound annual rate over the last decade while increasing its dividend at a 9% compound annual rate. The company expects to continue growing briskly. It sees its FFO per share rising at a more than 10% annual rate, powered by its organic growth drivers and acquisitions. That should give it plenty of fuel to continue growing its 4.9%-yielding dividend, which it sees rising at a 5% to 9% annual rate over the long term. An excellent price for this real estate wealth creator Realty Income has fallen more than 20% below its 52-week high. That has the real estate investment trust (REIT) trading at a bargain valuation and attractive dividend yield (currently 5.7%). The REIT expects to produce about $4 per share of adjusted FFO this year. With shares recently in the low $50s, it trades at about 13 times FFO. That's a great price to pay for a steady value creator. Since its public market listing in 1994, Realty Income has produced a 13.4% compound annual total return. A big driver has been its steadily rising dividend, which it has grown at a 4.3% compound annual rate. Realty Income is in a great position to continue growing value for its investors despite the pressures currently facing the real estate sector from higher rates. It recently agreed to acquire fellow REIT Spirit Realty in a $9.3 billion deal. That transaction provides it with a nice baseline growth rate for 2024. Meanwhile, it has lots of financial flexibility to continue making value-enhancing investments. These factors put it on track to deliver a double-digit total return next year, even if its valuation doesn't improve. A premium utility at a discounted price Shares of NextEra Energy have lost a third of their value from their 52-week high. That has the wealth-creating utility trading at a compelling valuation and dividend yield (currently 3.2%). NextEra Energy has historically fetched a premium valuation compared to its peers in the utility sector because it's growing faster than rivals. It has increased its earnings at a 9.8% compound annual rate over the last decade while boosting its dividend at an 11% compound annual rate. That helped power a 10.3% annualized total return over the past 10 years. However, with its shares slumping, it now trades at a discount to its peer group average's PEG ratio: Image source: NextEra Energy. One of the main factors weighing on shares of NextEra Energy is the concern that higher interest rates will slow its growth. However, the company doesn't see rates impacting its outlook. It recently reaffirmed its expectations that its adjusted earnings per share will rise by 6% to 8% annually through 2026. Further, the company reiterated its belief that it would be disappointed if it didn't deliver results near the top end of that growth range. Powering the company's confidence is its strong investment-grade balance sheet. It has an A bond rating, which gives it a cost of capital advantage. It can borrow money at lower costs and better terms than financially weaker rivals. It also has the balance sheet strength to utilize interest rate swaps and other financial products to reduce the impact of higher rates. You won't want to miss these sales High-quality companies don't go on sale very often. That's why investors will want to consider taking advantage of the sell-offs in Brookfield Infrastructure, Realty Income, and NextEra Energy. They're proven wealth creators that should be able to continue growing shareholder value in the future as they increase their earnings and attractive dividends. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Matthew DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, NextEra Energy, and Realty Income. The Motley Fool has positions in and recommends NextEra Energy and Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-23	NEE	A month has gone by since the last earnings report for NextEra Energy (NEE). Shares have added about 1.8% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is NextEra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. NextEra Energy Q3 Earnings Beat Estimates, Revenues Lag NextEra Energy, Inc. released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources. GAAP earnings for the third quarter were 60 cents compared with earnings of 86 cents in the year-ago period. Total Revenues For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year. Segment Results Florida Power & Light Company (“FPL”): The segment’s revenues amounted to $5,475 million, up 7.9% from the prior-year figure of $5,075 million. Its earnings came in at 58 cents per share compared with 54 cents recorded a year ago. NextEra Energy Resources: Its revenues amounted to $1,669 million, up 1.02% from the prior-year figure of $1,652 million. The segment’s earnings came in at 43 cents per share in comparison with 37 cents in the year-ago quarter. Corporate and Other: Operating revenues for the reported quarter were $28 million. The operating loss in the reported quarter was 7 cents per share compared with a loss of 6 cents in the year-ago period. Highlights of the Release NextEra Energy’s operating income in the third quarter was $1,836 million compared with $1,862 million in the year-ago period. Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in third-quarter 2023 increased by nearly 65,000 from the prior-year period. NextEra Energy Resources expanded its contracted renewables backlog by adding 1,485 megawatts (“MW”) of renewable projects during second-quarter 2023. Its backlog additions include nearly 400 MW of wind projects, 1,485 MW of solar projects, 905 MW of battery storage projects and 455 MW of wind repowering. The company’s renewables backlog is now nearly at 21 gigawatts. Financial Update The company had cash and cash equivalents of $1,568 million as of Sep 30, 2023 compared with $1,601 million on Dec 31, 2022. Long-term debt as of Sep 30, 2023, was $59.2 billion, up from $55.25 billion on Dec 31, 2022. Cash flow from operating activities for the first nine months of 2023 was $8,423 million compared with $7,267 million in the first nine months of the prior year. Guidance NextEra Energy reaffirmed 2023 earnings of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.12. For 2024, the company expects earnings per share of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow 6-8% per year, taking the 2024 adjusted earnings per share as the base. This translates to earnings per share of $3.45-$3.70 for 2025 and $3.63-$4.00 for 2026. The company’s unit, Energy Resources, currently aims to add 32,700-41,800 MW of renewable power projects to its portfolio within 2023-2026. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -7.56% due to these changes. VGM Scores At this time, NextEra has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-23	NEE	Cryptocurrencies are big business -- around the world. A survey earlier this year found that crypto was the second most popular asset in France (after real estate funds), while a different survey found that 46% of millennials from 26 countries owned crypto. Wow. Not everyone is so enthused about crypto, though. Warren Buffett is against it, for instance. His business partner Charlie Munger has uttered many quotable things about it, such as "Crypto is an investment in nothing," and "A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it's a gambling contract with a nearly 100% edge for the house..." If you're really interested, learn more about cryptocurrencies and make up your own mind. But know this: You don't need crypto to get rich (and it might not make you rich). Instead, you can build considerable wealth in ordinary shares of stock -- which are tied to actual brick-and-mortar businesses. Here are three candidates for your long-term stock portfolio. 1. NextEra Energy Let's start with NextEra Energy (NYSE: NEE). It bills itself as "the world's largest utility company" and recently sported a market capitalization near $120 billion. It's the owner of Florida Power & Light Company -- the largest electric utility in the U.S. -- and it also encompasses NextEra Energy Resources, which, "together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage." In the company's third quarter, its adjusted earnings per share (EPS) grew by 10.6% year over year, while it added about 3.2 gigawatts of new renewable power and storage to its already solid backlog of about 21 gigawatts. Over the past quarter, it placed more than 1 gigawatt into service as it grows its renewable business. NextEra pays a dividend, with a recent dividend yield of 3.3%. It foresees continued dividend growth of around 10% in the near future and has hiked its payout by an annual average of 11% over the past five years. This company looks like a big long-term winner. 2. Medtronic Medical device and treatment specialist Medtronic (NYSE: MDT) sports a market value near $100 billion and has a respectable dividend yield, recently 3.7%. (That payout has increased at an annual average rate of roughly 7% over the past five years.) The company is a powerhouse in healthcare, employing more than 95,000 people. It spent $2.7 billion on research and development last year (an expense that often drives new revenue generators), and had more than 200 active clinical trials. Medtronic's second-quarter results are imminent, but in its first quarter, reported in August, the company posted revenue growth of 4.5% (6% on an organic basis, which excludes foreign currency translations, among other things). The company's four main segments address diabetes, cardiovascular, neuroscience, and medical/surgical areas. Medtronic is facing some challenges, such as supply chain issues and operations in China. But as long as we humans continue to have healthcare issues and as long as we keep aging and developing more issues, companies such as Medtronic should have a lot of growth ahead of them. 3. Roche Roche Holding AG (OTC: RHHBY) is another healthcare company worth a closer look. Based in Switzerland and with a market value topping $215 billion recently, it was founded back in the late 1800s and was "one of the first industrial manufacturers of branded medicines." Roche also pays a dividend, recently yielding 3.8%. In the first half of 2023, Roche posted some numbers in the red, due in part to a sharp decline in demand for tests related to COVID-19 and to adverse currency translations. Its pharmaceutical division saw 8% year-over-year growth, though. Roche recently spent $7.1 billion buying Telavant Holdings, to expand its work tackling inflammatory bowel disease. Any or all of these companies -- or even a simple, low-fee index fund -- could make you rich if you buy and hold for many years, as long as they remain promising and continue executing well. There are plenty of others, too. No one needs to invest in cryptocurrency if they're looking to build wealth over the long run. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now… and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 15, 2023 Selena Maranjian has positions in Medtronic, NextEra Energy, and Roche Ag. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Roche Ag. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-22	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alternative energy stocks will likely be boosted by two medium-term catalysts and one long-term catalyst. One of the medium-term catalysts involves the Internal Revenue Service (IRS) finally releasing its rules on a hydrogen production tax credit. Slated to occur by March, the announcement will make the outlook of for U.S. hydrogen producers more certain and will lift hydrogen stocks if the rules governing the eligibility for the tax credit are not overly onerous. Another positive, medium-term catalyst will be declining interest rates since renewable-energy producers typically have to borrow a great deal of money to finance their projects. Finally, by 2025, electricity shortages could start hitting the U.S., increasing the demand for alternative energy. For example, New York City is expected to have major electricity shortages by then. The Midcontinent Independent System Operator, responsible for generating electricity for “45 million people across the central United States” is estimating it could have a 1.5 gigawatt shortfall starting in the summer of 2025. Here are three alternative energy stocks well-positioned to benefit from two of these three positive catalysts. Linde (LIN) Source: nitpicker / Shutterstock.com Linde (NASDAQ:LIN) provides investors with an intriguing combination of a thriving, highly profitable industrial gas business and two large, clean hydrogen plants that should meaningfully boost the company’s top and bottom lines in the long term. And LIN stock should get a meaningful lift when the IRS releases its hydrogen production tax credit rules within the next several months. The company’s multiple, positive attributes make it one of the better, safer alternative energy stocks to buy. On the clean hydrogen front, the company has started to prepare to build one plant in Beaumont, Texas and recently announced it was building another one in Phoenix in partnership with NextEra Energy (NYSE:NEE), a clean energy giant. Meanwhile, Linde recently raised its fiscal 2023 earnings per share guidance to between $14.00 and $14.10 from $13.80 to $14. As a result, the company looks poised to increase its EPS by 14% to 15% this year. Enphase (ENPH) Source: T. Schneider / Shutterstock.com Enphase (NASDAQ:ENPH) develops inverters to convert the sun’s rays into electricity. Due to problems in two of its markets — California and Europe — the company provided lower-than-expected Q4 EPS guidance earlier this month. Specifically, it now expects to generate about $325 million in sales, versus analysts’ average estimate at the time of $582 million. California greatly reduced the amount that utilities have to pay the owners of solar panels, lowering the demand for these panels by people who own homes. But “in a few quarters,” the ENPH CEO anticipates the sales of its microinverters will “normalize…to…levels” the company reached before the regulatory change. Among the factors likely to help accelerate the latter process are higher electricity rates, lower interest rates and inventory depletion. Similarly, in Europe, the company was hurt by excessive inventory rates, but that problem should ease as inventory levels decline in the medium term. Enphase expects favorable regulatory changes in Europe, higher electricity rates in France and positive momentum in Germany to boost company sales in the medium term. In the last year, the forward price/earnings ratio of ENPH stock has dropped a great deal and is now quite attractive. Specifically, the shares now have a forward P/E ratio of 26.45, down from 57.8 in September 2022. Array Technologies (ARRY) Source: Diyana Dimitrova / Shutterstock.com Array (NASDAQ:ARRY) develops and markets solar trackers used to optimally position solar panels to capture as much sunlight as possible. The company’s stock tumbled because it cut 2023 revenue guidance by a relatively small amount, reducing it to between $1.525 billion and $1.575 billion from $1.65 billion to $1.73 billion. But CEO Kevin Hostetler explained the reduction was due primarily to “short-term” delays associated with solar developers looking to renegotiate their deals in light of higher interest rates. Consequently, I expect the company’s sales growth to reaccelerate in Q1 or Q2 of 2024. Moreover, ARRY is still generating significant profits, as it reported net income, excluding certain items, of $10.1 million last quarter. ARRY stock has a very low, attractive forward price-earnings ratio of just 10.5, while its trailing price-sales ratio is also low, coming in at 1.4. On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Alternative Energy Stocks to Power Up Your Profits appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-22	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-22	NEE	The stock market has rallied this year. The S&P 500 is up more than 18%, while the tech-heavy Nasdaq 100 has surged over 35%. However, not all stock market sectors have been in rally mode this year. Energy stocks have underperformed, with those in the S&P 500 falling by an average of 4%. Because of that, many energy stocks trade at a compelling discount. Devon Energy (NYSE: DVN) and NextEra Energy (NYSE: NEE) are among the many top energy stocks currently in the discount bin. A bottom-of-the-barrel valuation Shares of Devon Energy have shed about a quarter of their value this year. While oil prices are down, WTI, the primary U.S. oil benchmark price, has only fallen about 4% in 2023. Because of that, Devon looks like a bargain, given the cash it can produce in the coming year. Devon Energy recently provided its preliminary guidance for 2024. The oil and gas company expects to produce $3.2 billion in free cash flow next year, a 20% increase from 2023 (assuming roughly flat oil prices at around the recent price of $80 per barrel). Lower capital spending is the main factor driving Devon's improved free cash flow. The company set its capital budget at around $3.5 billion next year, a 10% reduction from 2023. Devon plans to drill enough wells to maintain its current production rate (rather than increase production) while also benefiting from service cost deflation. That forecast has shares of Devon Energy trading at a bargain price. Image source: Devon Energy. As that slide shows, Devon trades at around an 11% free cash flow yield based on the cash flow it can produce at an average oil price of $80 a barrel next year. That's more than double the free cash flow yields of the S&P 500 and Nasdaq, implying Devon's stock trades at a wide discount to the market. That discounted share price drives Devon's plan to allocate more of its free cash flow toward share repurchases next year. The company had targeted paying up to 50% of its free cash flow in dividends (base plus variable). Instead, it will likely allocate less cash to variable dividends to repurchase more of its dirt cheap shares next year. Growth on sale Shares of NextEra Energy have lost nearly a third of their value this year. The main factor has been rising interest rates. Higher rates have weighed on the value of income-producing investments like utilities to push up their dividend yields to compensate investors for their higher risk profiles compared to bonds. In addition, rising rates have made it more expensive to borrow money to fund expansion-related investments. That latter issue has hit NextEra's renewable energy affiliate, NextEra Energy Partners, hard. It forced that entity to slow its growth rate, since it doesn't have the financial flexibility to acquire additional assets from its parent. However, NextEra Energy doesn't expect rising rates to affect its growth. The utility recently reaffirmed its long-term outlook, including its expectation that adjusted earnings per share will increase by 6% to 8% per year through 2026. Furthermore, NextEra noted that it would be disappointed if it didn't deliver earnings growth near the top end of its range. The company's large backlog of renewable energy and utility projects powers its growth forecast. It also has lots of financial flexibility to fund those new investments, even without being able to drop down additional assets to NextEra Energy Partners. The sell-off in NextEra Energy's shares has it trading at a discounted valuation compared to its peers. Image source: NextEra Energy. As that slide shows, NextEra Energy trades at a price/earnings-to-growth (PEG) ratio of 2.0 times. That's a discount to its peers' 2.5 times PEG ratio. This discount is quite a reversal for NextEra Energy, which has historically traded at a significant premium to its peer group. High-quality energy stocks at a discount Devon Energy and NextEra Energy have underperformed the market by a wide margin this year. Because of that, they trade at a steep discount. That makes them attractive options for investors seeking bargains in today's market, where cheap stocks are getting harder to find. 10 stocks we like better than Devon Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Devon Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Matthew DiLallo has positions in NextEra Energy and NextEra Energy Partners. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-22	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips With investors on the hunt for hot deals, undervalued sleeper stocks are seeing a good deal of attention. In fact, of the ones highlighted below, each carries low risk, and the potential for high returns. Albemarle (ALB) Source: tunasalmon / Shutterstock Albemarle (NYSE:ALB) has emerged over the last few years as one of the most important lithium stocks in the United States. It’s also one of the top most undervalued sleeper stocks and is also one of the most volatile. That’s because commodities like lithium are subject to multiple factors that also make their prices highly volatile. Still, ALB is a good bet because the electric vehicle market isn’t going anywhere. Further, lithium producers, particularly Albemarle, have been identified for their strategic national interest. For example, Albemarle recently received a $90 million grant from the Department of Defense. es, lithium prices are subdued at the moment. However, there is zero indication that the transition to EVs has changed materially. In other words, lithium is safe. Also, understand that even in a bad quarter Albemarle’s sales still grew by 10%. It’s definitely a steal at this time. Pfizer (PFE) Source: photobyphm / Shutterstock.com Pfizer (NYSE:PFE) continues to get hammered for the simple fact that it can’t continue to produce pandemic revenues indefinitely. I wouldn’t necessarily say that Pfizer is a sleeper stock because a lot of people know about it. However, I would say that it is absolutely one to buy because it is very undervalued. Bearish investors are going to focus on Pfizer’s immediate problems, including a recent earnings miss. The company reported $13.2 billion in revenues, which came in below expectations for $13.3 billion. At the same time, remember, Pfizer won the pandemic competition to produce a Covid-19 vaccine. It’s flush with cash. and has already used some of that to acquire Seagen (NASDAQ:SGEN). All in an effort to revitalize its pipeline. Between Seagen’s strengths in cancer and Pfizer’s plans to launch 20 products in the coming year, PFE continues to be a risk worth taking. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com Undervalued sleeper stocks, like NextEra Energy (NYSE:NEE) haven’t fared very well over the past several weeks. That’s primarily due to the unique market situation that we’re currently facing in which bond yields are extraordinarily high. The problem is and was that bond yields were very close to or above traditional dividend yields. Therefore, utilities, although seen as very stable and income bearing, simply didn’t stack up to the combination of guaranteed returns bond yields provided. Fortunately, the situation is shifting some and bond yields are declining to a degree. However, I believe NextEra Energy was a buy even without that factor shifting in its favor. The reason is because nextera energy is not simply a utility firm alone. It actually operates two businesses, one of which is a utility, and the other of which is a huge green energy business. Each of those businesses is the largest in its respective sector. Further, both continue to grow well. So in summary, NextEra Energy offers the stability of a utility firm along with dividend income, the growth of green energy, and the scale effects of being a leader in both categories. Snowflake (SNOW) Source: Sundry Photography / Shutterstock Snowflake (NASDAQ:SNOW) continues to be one of the most underappreciated data warehousing and AI stocks available to investors. The cloud data warehousing firm has shown continued strong growth quarter over quarter and year over year recently. However, It is been weighed down by the Federal Reserve’s battle to fight inflation by raising interest rates. It’s no secret, growth stocks got crushed in 2022 and remain undervalued in late 2023. It’s also no secret that the Fed is sending strong signals that its rate hike regime may be nearing an end. That puts Snowflake in position to rise quickly. Remember, Snowflake’s stock traded at nearly $400 In November of 2021. It fell precipitously once the markets digested the idea that the FED would soon tackle inflation. we’re now nearing the other side of that cycle. That means that there’s a real chance that Snowflake can rise as precipitously as it fell. Fundamentally it’s the same strong growth company that it was back then. In the second quarter, revenues grew by 37%, And the company boasted a $142% net retention rate. That means for every customer that the company had, it grows the account by 42%. Beyond that, The company is showing strong machine learning and AI growth. Johnson Controls (JCI) Source: Jonathan Weiss / Shutterstock.com Like so many other Industrial shares, Johnson Controls (NYSE:JCI) is a sleeper stock. Investors just aren’t that interested in the industrial sector because it lacks flash and growth. The analysts responsible for the valuation of Johnson Controls believe it to be substantially undervalued. For example, the Wall Street analysts covering JCI stock give it a consensus price of $69.63. Gurufocus values its shares at $70.51. It trades for $51 at the time of writing. that doesn’t include the benefit of its dividend which yields 2.9%. Ultimately, Johnson Controls will need some sort of catalyst in order for the market to appreciate it. What might that be? In my opinion, it’s very simple, the market simply needs to begin talking about the Internet of Things opportunity again. The company has a huge opportunity there as more and more buildings become smart. Johnson Controls provides the services and materials which will help to modernize buildings globally. Building managers will need to exercise greater control over the efficiency of their assets in the coming years and decades. Johnson Controls is a primary provider of those products and services that will help to connect buildings to the Internet and become smarter. Duke Energy (DUK) Source: Jonathan Weiss / Shutterstock.com Duke Energy (NYSE:DUK) Is one of those undervalued utility stocks that I alluded to earlier when discussing NextEra Energy. However, Duke Energy is much more of a traditional utility company than NextEra Energy. Another one of the top undervalued sleeper stocks, Duke Energy is pursuing green energy goals it is what most investors would consider to be a traditional utilities firm. provides electricity and natural gas to 8.2 million electricity customers and 1.6 million natural gas customers throughout the Mid-Atlantic, Southeast, and Midwest states. There’s not that much to note about Duke Energy that is particularly important or interesting. instead, I would simply note that it’s a steady investment and the company projects five to seven percent EPS growth through 2027. At the same time, its dividend is yielding 4.65% right now. The company last reduced that dividend in 2007 so it’s relatively safe. Utilities firms essentially operate as regulated monopolies and that serves to keep them very stable. thus, Duke Energy is a reasonably safe bet that is currently providing strong income. Cisco (CSCO) Source: Valeriya Zankovych / Shutterstock.com Investors routinely overlook Cisco (NASDAQ:CSCO) despite its position as a dominant Silicon Valley firm. Cisco provides networking services and thus is a very basic, unsexy firm relative to Google (NASDAQ:GOOG,GOOGL) Nvidia (NASDAQ:NVDA), and the other rapid growers in Silicon Valley. But that’s how investing goes, you have to look at the market in slightly different ways in order to find the real hidden value. Anyway, Cisco Systems offers a lot to investors seeking to capitalize on modern shifts. The company is focused on networking as it relates to cloud, software, security, and AI. In other words, Cisco Systems will have a lot of opportunity in the coming years as enterprises increase their investment in networking those respective areas within their firms. In fact, that’s already underway. The company saw its revenues grow by 11% in fiscal year 2023, Reaching nearly $57 billion. That led to record net income levels while the company also returned $10.6 billion to shareholders. In other words, investing in Cisco Systems is a great way to expose oneself to income opportunities that take advantage of ongoing secular trends that are expanding the technological footprint especially within the U.S. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 7 Most Undervalued Sleeper Stocks to Buy Now: November 2023 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-22	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite initial concerns of a recession, the U.S. economy is poised to outperform expectations in 2024, according to Goldman Sachs Research. The forecast indicates a robust expansion with a projected 2.1% increase in U.S. GDP for the full year. This number surpasses the consensus estimate of 1% from economists surveyed by Bloomberg. Also, Goldman Sachs Research reiterates its enduring perspective that the likelihood of a U.S. recession is notably lower than commonly perceived. This positive economic outlook is expected to contribute to the growth of the stock market. As increased economic activity and confidence begin to propel corporate earnings and investor optimism, investors should buy these three solar stocks now. Clearway Energy (CWEN) Source: Pavel Kapysh / Shutterstock.com Clearway Energy (NYSE:CWEN) is an independent clean power producer and developer, covering every step of the renewable energy process from fields to customers. CWEN stock is down 29.35% year to date (YTD), but current circumstances poise Clearway for recovery and growth. Renewable energy is an industry with increasing cost competitiveness. Valued at $1.1 trillion in 2022, the industry is projected to grow at a 16.9% CAGR through 2030. This is indicative of a global shift toward lower carbon emissions. Clearway is bound to benefit from this expansion and its cost competitiveness. Another key success factor is Clearway’s solid backing from its parent company, Clearway Energy Group. Global Infrastructure Partners and TotalEnergies each own exactly 50% of this parent company. Two out of three Wall Street analysts give CWEN a strong buy rating, predicting a 22.27% upside. Also, the company is reporting solid Q3 financials. In fact, revenue of $371 million is beating expectations by $5.5 million and growing 9.1% year over year (YOY). Finally, Clearway is positioned in an ever-growing industry and has solid backing and financials. Its current price drop is mainly due to the volatility of renewable sources. Brookfield Renewable Corporation (BEPC) Source: Piotr Swat / Shutterstock Brookfield Renewable Corporation (NYSE:BEPC) operates one of the world’s largest platforms for renewable power and decarbonization solutions. BEPC is up 13.24% in the past month. Further, Wall Street Journal analysts forecast a median price target of $33.00 to a high of $37.00. The global renewable energy market is predicted to grow at a 16.9% CAGR from $1.21 trillion in 2023 to $3.60 trillion in 2030. Environmental regulations in developed countries provide Brookfield with expansion opportunities. BEPC reported solid Q3 financials, with a 13.70% YOY growth in revenue to $1.03 billion. Also, the $4.4 billion available liquidity at the end of the quarter proves tremendous flexibility for future growth funding. In Q3, Brookfield announced its commitment to invest $2.2 billion of capital across various investments. One of the partnerships is with Axis Energy, an India-based, leading renewable energy developer. This collaboration established a new development platform in India, with 1.2 GW of advanced-stage projects and another 5 GW in the pipeline. In addition, Brookfield acquired leading U.K. renewables developer Banks Renewable for $600 million. This deal gives the company access to 260 MW wind assets and about 800 near-term development projects. Hence, BEPC is well-positioned to benefit from the growing global renewable energy market. NextEra Energy Incorporated (NEE) Source: madamF / Shutterstock.com NextEra Energy Incorporated (NYSE:NEE) is an American energy company with 58 GW of generating capacity and 14,900 employees nationwide. NEE stock is down 32.48% YTD and is continually placing itself in a worthwhile valuation for investors. The global solar panel market is expected to grow at a CAGR of 18% from 2022 to 2030. NextEra has strong financials. Revenue in the September 2023 quarter landed at $7.17 billion, growing 6.74% YOY. Also, operating income of $1.89 billion increased by 7.38% YOY. True, the renewable energy market continues its robust expansion, presenting a long-term investment opportunity for dividend investors. And, NextEra has strategically refined its growth outlook. As of September’s end, NEE anticipates a sustainable distribution growth rate of 5-8% annually. This is a deliberate adjustment from the earlier projection of 12-15% annual growth. The proactive adaptation is driven by a prudent response to the evolving interest rate landscape. It positions NextEra Energy Partners for resilient and balanced growth in the dynamic energy sector. Finally, 19 Yahoo! Finance analysts are projecting a median 12-month price target of $72.57 to a high of $102.80 on NEE. The company is set to grow in the long term as it currently is successfully growing past its turmoils. On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Solar Stocks You’ll Regret Not Buying Soon: November 2023 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-21	NEE	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR Fund (Symbol: XLU) where we have detected an approximate $295.0 million dollar outflow -- that's a 2.1% decrease week over week (from 221,620,000 to 216,870,000). Among the largest underlying components of XLU, in trading today NextEra Energy Inc (Symbol: NEE) is trading flat, Southern Company (Symbol: SO) is down about 0.3%, and Duke Energy Corp (Symbol: DUK) is up by about 0.3%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.77 per share, with $73.79 as the 52 week high point — that compares with a last trade of $62.01. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs experienced notable outflows » Also see: FHN YTD Return Institutional Holders of LLSP Funds Holding BFYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-21	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips With oil prices dipping below the $80 mark this month, it’s plausible to think that the energy stock rally has hit its peak. Yet, this could be a premature assumption. Energy stocks remain ripe for growth, especially with 2024 forecasts hinting at significant supply constraints, potentially reaching a shortfall of one million barrels daily. Interestingly, this supply won’t come from OPEC+ nations, as they haven’t shown any interest in boosting production. Amidst these uncertainties, turning away from energy stocks doesn’t seem wise. In fact, now appears to be an opportune moment to explore energy stocks to buy on the dip, with healthy long-term upside potential. Phillips 66 (PSX) Source: Jonathan Weiss / Shutterstock.com Phillips 66 (NYSE:PSX), is a downstream specialist involved in refining, marketing petrochemicals, and transportation services. Despite the headwinds though in the energy space, Phillips 66 continues to thrive on the operational front. Additionally, its appealing valuation at 0.34 time’s forward sales estimates adds significantly to its attractiveness. Impressively, the company’s financial health remains robust, consistently recording net income. This strength translates into a promising forward yield of more than 3.5% while continuing to generate tremendous cash flows. In its most recent quarter, it generated a whopping $2.7 billion in operating cash flow ($2.4 billion excluding working capital). Recently, Wolfe Research upgraded Phillips 66, anticipating a rise in shareholder returns. With a new target of $146, Wolfe analyst Sam Margolin highlights Phillips 66’s straightforward approach to boosting shareholder value Enbridge (ENB) Source: JHVEPhoto / Shutterstock.com Enbridge (NYSE:ENB) has established itself as a major force in energy transport and distribution, showcasing its impressive financial performance of late. Its most recent quarter showed a 3% increase in adjusted EBITDA, reaching $3.9 billion, along with a significant jump in operating cash flow from $2.1 billion to $3.1 billion year-over-year. These figures are a testament to Enbridge’s robust operational health. In its pursuit of growth, Enbridge is making strategic moves in infrastructure development, particularly with the Rio Bravo pipeline construction. This pipeline is critical for supplying natural gas to the Rio Grande LNG project, underscoring Enbridge’s commitment to tapping into energy sector growth opportunities. Looking to the future, the 2024 election outcome could be a pivotal factor for Enbridge. A Democratic win, with its potential impact on pipeline projects like Keystone XL, might inadvertently benefit Enbridge. Clearway Energy (CWEN) Source: Pavel Kapysh / Shutterstock.com Clearway Energy (NYSE:CWEN) is a renewable energy company operating natural gas facilities, wind, and solar projects. It boasts a generation capacity of roughly 4.22 gigawatts, with ambitious plans to expand to 16.32 gigawatts by the conclusion of the current decade. Clearway has posted relatively mixed results of late, with net income falling by more than 70% compared to the prior-year period. The decline was primarily due to lower earnings from natural gas, with the income from renewables remaining stable. Renewables are likely to be a key catalyst driving its business forward, with a noteworthy environmental goal to make 90% of its electricity production carbon-free by 2034. The company’s stock trades at 3.49 times, trailing twelve-month cash flows, 53% lower than the industry average of 7.44 times. Moreover, its solid dividend payout, currently at an annual rate of 7.05% with an upcoming dividend of 40 cents per share, makes it an appealing choice for investors looking for value and sustainable growth in the renewable energy sphere. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com NextEra Energy (NYSE:NEE), a cornerstone in the utility sector, continues to play a crucial role in powering Florida’s energy landscape through its powerful energy generation and distribution capabilities. It symbolizes stability in an otherwise unpredictable market even amidst current business challenges. In a recent move highlighting its commitment to shareholders, the company announced a notable quarterly dividend of 46 cents per share. This decision sustains an appealing forward yield of over 3.4%, with 27 years of payout growth, a strategic choice that efficiently resonates with dividend-focused investors. This step underlines NextEra’s dedication to delivering shareholder value, emphasizing its investor-friendly approach. Furthermore, NextEra is strategically refining its operations. Its subsidiary successfully sold Florida City Gas to Chesapeake Utilities for a massive $923 million in cash. This transaction showcases NextEra’s commitment to optimizing its asset portfolio and strengthening its financial foundation. Such strategic maneuvers exemplify NextEra Energy’s foresight and adaptability. Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Chevron (NYSE:CVX) stands out as a beacon for those eyeing investments in the oil and gas sector. Its stature is reinforced by an impressive $18.23 billion in levered free cash flow over the past 12 months, highlighting its financial prowess. Moreover, despite the market’s lukewarm response to its acquisition of Hess (NYSE:HES), the implications of this deal are yet to unfold. Chevron’s strategy proves successful; Hess could significantly expand its business portfolio. However, Chevron’s stock experienced a setback in late October following its third quarter report. Although it went past revenue expectations with a $1.08 billion margin, its EPS fell short by 64 cents against analysts’ predictions. This discrepancy raised eyebrows, but Chevron’s future still looks promising, especially considering the ongoing demand for fossil fuels. Moreover, the firm’s continued focus on exploration, production, and distribution positions it as a prime investment option in the energy sector. Kinder Morgan (KMI) Source: JHVEPhoto / Shutterstock.com With its vast pipeline network covering 95,000 miles in the United States and Canada, Kinder Morgan (NYSE:KMI) is on a stellar trajectory. The company’s recent announcement of acquiring South Texas assets from NextEra Energy for $1.8 billion is a testament to its growth strategy. This move couldn’t have come more at an opportune time, especially considering it might shift investor attention away from the company’s earnings miss in October. Kinder Morgan presents an attractive dividend opportunity for investors, currently yielding 6.87%. This yield, akin to a utility firm’s, surpasses the returns typically offered by bonds or utility stocks. Investors considering Kinder Morgan should primarily focus on dividend income, given the firm’s stable and appealing yield. Moreover, it’s known for maintaining robust margins and profitability, earning a B+ profitability profile from Seeking Alpha. These financial strengths make it an appealing investment, especially for those prioritizing steady income and long-term stability in the energy sphere. Schlumberger Limited (SLB) Source: Valentin Martynov / Shutterstock.com Schlumberger Limited (NYSE:SLB), formerly known as one of the top oil services players, has recently rebranded itself as a global technology firm. Despite its impressive pedigree in exploration and production, SLB stock has remained relatively stagnant for over a year. As oil prices surge, Schlumberger’s focus on services over drilling might just be its ace in the hole. Moreover, the firm is likely to benefit from increased investments by heavyweights including Exxon Mobil (NYSE:XOM) and Chevron in drilling and exploration. Additionally, Schlumberger’s top and bottom-line results are set to gain momentum from Saudi Arabia’s substantial $100 billion drilling budget planned for 2023 to 2025. Financially, Schlumberger is on solid ground, with trailing twelve-month free cash flows surging 64.2%, easily covering its annual dividends of over $1.4 billion. This financial robustness, along with its plans to re-enter the US onshore services by 2025, solidifies Schlumberger’s standing in the sector. On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 7 Energy Stocks You’ll Regret Not Buying Soon: November 2023 appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-20	NEE	Looking at the universe of stocks we cover at Dividend Channel, on 11/22/23, Fortune Brands Innovations Inc (Symbol: FBIN), NextEra Energy Inc (Symbol: NEE), and Viatris Inc (Symbol: VTRS) will all trade ex-dividend for their respective upcoming dividends. Fortune Brands Innovations Inc will pay its quarterly dividend of $0.23 on 12/13/23, NextEra Energy Inc will pay its quarterly dividend of $0.4675 on 12/15/23, and Viatris Inc will pay its quarterly dividend of $0.12 on 12/15/23. As a percentage of FBIN's recent stock price of $66.62, this dividend works out to approximately 0.35%, so look for shares of Fortune Brands Innovations Inc to trade 0.35% lower — all else being equal — when FBIN shares open for trading on 11/22/23. Similarly, investors should look for NEE to open 0.83% lower in price and for VTRS to open 1.29% lower, all else being equal. Below are dividend history charts for FBIN, NEE, and VTRS, showing historical dividends prior to the most recent ones declared. Fortune Brands Innovations Inc (Symbol: FBIN): NextEra Energy Inc (Symbol: NEE): Viatris Inc (Symbol: VTRS): In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.38% for Fortune Brands Innovations Inc, 3.31% for NextEra Energy Inc, and 5.14% for Viatris Inc. In Monday trading, Fortune Brands Innovations Inc shares are currently off about 0.9%, NextEra Energy Inc shares are down about 1.5%, and Viatris Inc shares are down about 1.2% on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » Also see: Funds Holding ESNR Institutional Holders of RJI GDXX shares outstanding history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-18	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-17	NEE	The Southern Company (NYSE: SO) provides natural gas and electricity to customers across several Southeastern U.S. states. It is a fairly uneventful utility with a reasonably attractive dividend yield of around 4.1%, notably better than the average utility's yield of around 3.6%, using Vanguard Utilities Index ETF (NYSEMKT: VPU) as a proxy. The biggest selling point today is growth, but that needs a bit of an explanation. Southern is a reliable dividend stock Southern's dividend has been increased annually for 22 consecutive years. This is actually more impressive than it may sound at first, given the headwinds the utility faced over that span. From an external view, there was the coronavirus pandemic and the Great Recession. Internally, the company was building two nuclear power plants, collectively known as the Vogtle Project, that were badly delayed and way over budget. So, keeping the dividend streak going despite facing multiple adverse situations shouldn't be ignored. SO Dividend Per Share (Annual) data by YCharts. However, the story doesn't end there. The dividend has actually been held steady for increased for 76 consecutive years. That's a streak that Southern's largest competitors should be envious of. Take a look at the graph above; even industry darling NextEra Energy (NYSE: NEE) had a dividend reduction if you go back far enough. Slow and steady dividend growth, though perhaps not annual dividend growth, is something that most conservative income investors should be able to appreciate. Meanwhile, the dividend growth rate is likely to pick up in the next few years. While Southern has been working on the Vogtle Project, dividend growth has been mired in the low single digits. That giant investment is nearing completion (likely in early 2024), and then the costs will subside, and the power plants will start producing cash flow. Some of that cash will likely be used to push the dividend higher once the payout ratio drops below 70%. Mid-single-digit dividend growth could show up as soon as 2025. While the dividend growth story is attractive, it's not the only growth story that's unfolding at The Southern Company. More demand means more spending As a regulated utility, Southern has to get its rates and capital spending plans approved by the government. The trade-off is that regulators provide it with a reliable and reasonable return on the investments it makes to ensure that customers have power. Bull markets, bear markets, and recessions have a minor impact on the company's spending, but the plans generally come off as expected over time because customer reliability is a key focus. And that is where the growth story gets really interesting because Southern is seeing an increase in demand. Right now, Southern has capital investment plans of roughly $43 billion over the next five years. That pays for things like the completion of the Vogtle Project but also more mundane investments like hardening power lines so they can better handle bad weather conditions. The spending is also going toward the shift in energy production from carbon-intensive assets to clean energy. There's a lot in the mix, but the end goal is to ensure a reliable energy supply to the utility's customers. During the company's third-quarter conference call, management highlighted that it will be updating its five-year plan soon. That's not unusual; it happens every year. But this time around, it explained that there would be a large increase because it was seeing more demand than it expected. That will push the five-year spending plan up to at least $45 billion. A notable increase. What Southern is trying to figure out right now, as it goes through the planning process, is how much higher than $45 billion it will go. This is where it gets really interesting. As noted, every penny of that spending is overseen by regulators, and every penny earns a return set by the regulators. So, the more Southern spends, the more its earnings power grows. While Southern is never going to be a high-growth technology stock, it does appear to be ready to step up to a new level of growth after a rough patch during the Vogtle Project. That uptick will likely be greeted kindly by income investors because it will also support further dividend growth. Wall Street is already catching on The truth is that Southern's stock has performed much better of late as the Vogtle project nears completion. The dividend yield of around 4.1% is toward the lower side of the 10-year range here. However, given the likely uptick in dividend growth and the increase in the capital spending budget (which hints at faster business growth), there could be more upside ahead as investors reevaluate the growth potential of this utility. If you don't start digging in now, you might miss the chance to own Southern before the business steps up to a higher level of performance. 10 stocks we like better than Southern Company When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Southern Company wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Reuben Gregg Brewer has positions in Southern Company. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-16	NEE	Strange but true: seniors fear death less than running out of money in retirement. Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies. In today's economic environment, traditional income investments are not working. Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over. The impact of this rate decline is sizable: over 20 years, the difference in yield for a $1 million investment in 10-year Treasuries is more than $1 million. In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035. So what can retirees do? You could dramatically reduce your expenses, and go out on a limb hoping your Social Security benefits don't diminish. On the other hand, you could opt for an alternative investment that gives a steady, higher-rate income stream to supplant lessening bond yields. Invest in Dividend Stocks As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks. Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. Magna (MGA) is currently shelling out a dividend of $0.46 per share, with a dividend yield of 3.29%. This compares to the Automotive - Original Equipment industry's yield of 0% and the S&P 500's yield of 1.71%. The company's annualized dividend growth in the past year was 2.22%. Check Magna (MGA) dividend history here>>> NextEra Energy (NEE) is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 3.28% compared to the Utility - Electric Power industry's yield of 3.67% and the S&P 500's yield. The annualized dividend growth of the company was 10% over the past year. Check NextEra Energy (NEE) dividend history here>>> Currently paying a dividend of $0.77 per share, Park Hotels & Resorts (PK) has a dividend yield of 4.25%. This is compared to the REIT and Equity Trust - Other industry's yield of 4.6% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 1400%. Check Park Hotels & Resorts (PK) dividend history here>>> But aren't stocks generally more risky than bonds? The fact is that stocks, as an asset class, carry more risk than bonds. To counterbalance this, invest in superior quality dividend stocks that not only can grow over time but more significantly, can also decrease your overall portfolio volatility with respect to the broader stock market. An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income. Thinking about dividend-focused mutual funds or ETFs? Watch out for fees. If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges. Bottom Line Regardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Magna International Inc. (MGA) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-16	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-16	NEE	The NASDAQ 100 Pre-Market Indicator is down -36.8 to 15,780.38. The total Pre-Market volume is currently 29,830,153 shares traded. The following are the most active stocks for the pre-market session: Alibaba Group Holding Limited (BABA) is -7.2 at $79.87, with 6,160,034 shares traded. Smarter Analyst Reports: Alibaba to Reorganize E-commerce Businesses to Boost Growth — Report ProShares UltraPro Short QQQ (SQQQ) is +0.17 at $16.47, with 3,037,351 shares traded. This represents a 2.81% increase from its 52 Week Low. Macy's Inc (M) is +0.941 at $13.55, with 2,399,653 shares traded. M's current last sale is 96.79% of the target price of $14. Walmart Inc. (WMT) is -11.34 at $158.44, with 2,289,463 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $1.53. Smarter Analyst Reports: Walmart Enters Premier Beauty Collaboration with Space NK Tesla, Inc. (TSLA) is -4.19 at $238.65, with 1,597,480 shares traded. TSLA's current last sale is 95.46% of the target price of $250. ProShares UltraPro QQQ (TQQQ) is -0.45 at $42.61, with 1,534,928 shares traded. This represents a 164.66% increase from its 52 Week Low. NextEra Energy, Inc. (NEE) is +0.09 at $57.09, with 1,184,031 shares traded. As reported by Zacks, the current mean recommendation for NEE is in the "buy range". NIO Inc. (NIO) is -0.33 at $7.61, with 1,161,179 shares traded. NIO's current last sale is 64.77% of the target price of $11.75. Cisco Systems, Inc. (CSCO) is -5.48 at $47.80, with 959,138 shares traded. CSCO's current last sale is 82.41% of the target price of $58. Bank of America Corporation (BAC) is -0.17 at $29.45, with 938,247 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.79. BAC's current last sale is 86.62% of the target price of $34. Confluent, Inc. (CFLT) is -0.06 at $19.85, with 866,619 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $-0.19. As reported in the last short interest update the days to cover for CFLT is 7.805802; this calculation is based on the average trading volume of the stock. JD.com, Inc. (JD) is -1.62 at $26.97, with 819,474 shares traded. As reported by Zacks, the current mean recommendation for JD is in the "buy range". The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-16	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips While sometimes overshadowed by stocks in the mega-cap ($200 billion market cap and higher) stocks category, large-cap stocks (or stocks with a market cap between $10 billion and $200 billion) can often offer investors the best of both worlds. Large-caps are typically shares in established, profitable enterprises. Compared to stocks in the mid-cap, small-cap, and micro-cap categories, this may make them better buys for investors targeting steady returns. With more room to run growth-wise compared to the mega-caps (which outside of tech, are typically very large, mature enterprises with limited growth potential), large-cap can have the potential to produce greater returns (from both price appreciation and dividends) compared to the mega-caps. According to Finviz, there are 713 large-caps trading on major U.S. exchanges. However, among this large pool of opportunities, take a look at these seven. Each of these large-cap stocks has a solid track record of earnings and dividend growth. Automated Data Processing (ADP) Source: IgorGolovniov / Shutterstock Automated Data Processing (NASDAQ:ADP) has long been one of the best large-cap stocks to buy and hold. Shares in the payroll and outsourced HR services provider have experienced strong price appreciation, rising 220% over the past decade. ADP stock has also been a rewarding investment for dividend-focused investors. As I noted back in August, ADP is a “dividend aristocrat,” with over 25 consecutive years of dividend growth under its belt. The stock currently has a forward dividend yield of 2.43%. Assuming growth trends continue, Automatic Data Processing remains well-positioned to continue producing strong returns. Forecasts call for earnings to rise by between 9%-10% over the next few years. Dividend growth has averaged 13.6% annually over the past five years. Put it all together, and it’s clear to see why ADP remains one of the top large-caps for investors focused on steady gains for their portfolios. Illinois Tool Works (ITW) Source: Casimiro PT / Shutterstock.com Illinois Tool Works (NYSE:ITW) is another of the dividend aristocrats that’s one of the best large-cap stocks to buy. This industrial conglomerate has increased its dividend payouts 27 years in a row. With a forward yield of 2.37%, dividend growth has averaged 9.8% annually over the past five years. Similar to ADP, ITW stock has also experienced an outsized level of price appreciation over the past decade. Consistent earnings growth has sent the stock surging threefold since 2013. ITW’s forward multiple (24.3) may seem steep at first place, when compared to stocks overall. However, given the company’s resilient results (improved earnings despite zero revenue growth) last quarter, and the prospect of growth re-acceleration (based on sell-side earnings forecasts), ITW still appears on track to deliver the level of earnings growth necessarily to sustain its valuation, and keep shares trending upwards over a long time frame. L3 Harris Technologies (LHX) Source: JennLShoots / Shutterstock.com L3 Harris Technologies (NYSE:LHX) isn’t in the dividend aristocrats category just yet, but it’s getting there. This defense firm has raised its payouts for 21 years in a row. LHX’s 2.43% dividend yields provide a solid baseline of returns, and the payout has increased by 13.6% on average over the past five years. Thanks to the company’s strengths in acquiring/realizing cost/growth synergies out of bolt-on acquisitions, LHX stock (up 182.8% over the past 10 years) appears poised to keep rising, in line with expected high single-digit increases in earnings per share. That’s not all. As Raymond James analyst Brian Gesuale recently argued, LHX is undervalued compared to peers in the aerospace and defense technology space. While not for certain, it’s possible that, over time, this valuation gap is bridged. Such multiple expansion could help to further boost future total returns. Medtronic (MDT) Source: JHVEPhoto / Shutterstock.com With shares declining in price over the past five years, at first you may question Medtronic’s (NYSE:MDT) appeal as a long-term buy-and-hold. Yet while the medical device maker hasn’t exactly been a winner for investors in recent years, it could be a different story in the years ahead. As InvestorPlace’s Will Ashworth recently pointed out, Medtronic is in the midst of a restructuring. Once the company completes divesting non-core/underperforming business segments, and becomes focused fully on higher growth/higher margin products, MDT stock (trading for only 14.2 times earnings today) could experience a big re-rating to the upside. Alongside this, the stock’s moderately-high dividend (3.8% forward yield) stands to provide a further boost for total returns. While it may take time for the turnaround to play out, in hindsight buying now (as uncertainty still looms over shares) could prove to be a very profitable move. NextEra Energy (NEE) Source: madamF / Shutterstock.com NextEra Energy (NYSE:NEE) shares are currently in a slump. There’s no way to sugarcoat it. As I discussed last month, shares took a dive in September, as the prospect of persistently high interest rates and slowing growth for the utility company’s renewables segments weighed on the minds of investors. However, if you’re looking to make NEE stock one of the large-cap stocks to buy and hold in your portfolio, this sharp sell-off works to your advantage. Although shares have started to recover, NextEra remains reasonably-priced, at 18.4 times forward earnings. Despite the walking-back of outlook, analysts still expect NEE to report high single-digit earnings growth in the years to come, which may help to drive shares higher. Combine that with NextEra’s 3.25% (and growing) dividend, and it’s easy to see why NEE, while no longer a high-flier, could still be a long-term winner for slow-and-steady investors. Philip Morris International (PM) Source: Shutterstock With its greater exposure to non-combustible tobacco products, up until recently, Philip Morris International (NYSE:PM) was considered the tobacco company with the brightest future. More recently, though, pessimism about the stock has made a resurgence. Namely, there are concerns that, even for Philip Morris International, non-combustible growth will fail to make up for global declines in cigarette consumption. However, based on the company’s Q3 2023 results, I wouldn’t necessarily jump to this bearish conclusion about PM stock. Even when excluding increased revenue resulting from PM’s acquisition of Swedish Match last year, top-line growth came in at 9.3%. With adjusted earnings per share rising 20.3%, so far it appears that the smokefree transition is working out. As PM trades for only 14.8 times earnings, and with a 5.75% dividend to boot, now may be the perfect time to make this a long-term buy-and-hold. Sysco (SYY) Source: Shutterstock Food distributor Sysco (NYSE:SYY) was initially able to pass on rising food costs to its consumers. This resulted in a big jump of profitability during the company’s fiscal year ending July 2022. Since then, however, inflation has started to affect Sysco’s financial performance. Namely, inflation, along with higher interest rates, have led to softening demand from the company’s main customer base (restaurants). However, while in a rough patch right now, Sysco is likely to get back on track, once economic conditions normalize. This could spark a rebound for SYY stock, which is down 9.24% this year. In terms of SYY’s appeal as one of the large-caps to buy-and-hold, after recovering from present headwinds, the company could get back to reporting prior levels of earnings growth. In turn, leading to continued mid single-digit growth of its dividend (currently at 2.9%), along with mid-single digit price appreciation. On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 7 Large-Cap Stocks to Buy for the Long Haul appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-15	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the possibility that the fourth quarter’s economic results might disappoint given the stellar print of Q3, investors may want to consider dividend aristocrats. If you’re looking for some of the best dividend stocks for income, you can’t go wrong with this label. It refers to S&P 500 companies that have increased their payouts to shareholders for at least 25 years. Fundamentally, the major benefit of dividend aristocrats centers on incentivized performance. No one wants to lead the team that gave up on a run that has gone on for almost three decades. Obviously, it doesn’t look good on one’s resume. Therefore, a clear motivation exists to keep the passive income going, irrespective of outside pressures. On a related note, this rarefied category enjoys both the business model and acumen to survive multiple market conditions. In the past 25 years, the U.S. equities sector absorbed terrorist attacks, natural disasters, financial collapses and a raging pandemic. If companies are still rewarding their stakeholders after all that, you probably can’t find a better place for dividend stocks to buy for income. To be sure, every asset category faces risks. Still, if you’re worried about tomorrow, these dividend aristocrats should help you rest easy. Atmos Energy (ATO) Source: Shutterstock Based in Dallas, Texas, Atmos Energy (NYSE:ATO) is one of the largest natural gas-only distributors in the nation. Per its public profile, Atmos serves about three million natural gas distribution customers in over 1,400 communities in nine states. While hydrocarbons may face diminishing popularity, they’re still necessary amid rising population figures and subsequently increased consumption. As one of the dividend aristocrats, you’re enjoying relative stability combined with the prospect of steady growth. Right now, the company carries a forward dividend yield of 2.9%. While that’s a bit lower than the utility sector’s average yield of 3.75%, the payout ratio is reasonable at 49.6%. Also, the firm enjoys 40 years of consecutive dividend increases, a status it’s jealously protecting. While not the most attractively priced entity at forward earnings multiple of 17.17x, Atmos prints impressive profit margins. Subsequently, analysts rate ATO a consensus moderate buy with a $122.67 average price target. Further, the high-side target lands at $131, an intriguing idea for dividend stocks to buy for income. Sysco (SYY) Source: JHVEPhoto/Shutterstock.com A multinational corporation specializing in marketing and distributing food products, Sysco (NYSE:SYY) appeals for those seeking dividend stocks to buy for income. To be sure, its business model isn’t the sexiest in the world. In addition to food services, the company also helps distribute small wares, kitchen equipment and tabletop items to restaurants, healthcare and education facilities, among other establishments. However, it’s awfully relevant. No matter what happens in the economy, people will travel, people will get sick and they’ll all get tired of cooking at home every single day. Therefore, SYY should benefit from consistent, predictable demand. Unsurprisingly, Sysco – while it doesn’t carry the greatest financial print – is consistently profitable over the past decade. As one of the most reliable dividend aristocrats, Sysco doesn’t exactly knock it out of the park with its 2.97% forward yield. However, it’s above the consumer staples sector’s average yield of 1.89%. Also, it commands 54 years of consecutive payout increases. Analysts peg SYY a strong buy with an $80.25 target, projecting over 19% upside. Coca-Cola (KO) Source: monticello / Shutterstock Enjoying prominence as a longstanding idea for dividend stocks to buy for income, Coca-Cola (NYSE:KO) deserves to be on your radar. Sure, the underlying products aren’t exactly healthy for you. However, as a producer of caffeinated products found in grocery stores, the brand might benefit from the trade-down effect. Basically, economic pressures may force consumers to look for caffeine alternatives to pricey coffeeshops. As society normalizes and more companies recall their employees back to the office, Coca-Cola could represent a necessary pick-me-up. Financially, it’s not particularly exciting. For example, it features a forward earnings multiple of 20.35x, which is a bit overvalued. Still, in exchange for that premium, you get a predictable business and sky-high profit margins. And that of course translates to robust passive income. One of the top dividend aristocrats, the soft-drink giant commands a forward yield of 3.23%. As well, it prints 61 years of consecutive payout increases. Analysts rate KO a moderate buy with a $63.76 target. The high-side target lands at $69. Johnson & Johnson (JNJ) Source: Alexander Tolstykh / Shutterstock.com Practically a no-brainer on the topic of dividend aristocrats, Johnson & Johnson (NYSE:JNJ) commands extraordinary relevance. Sure, the company spun off its consumer healthcare products unit. However, the enterprise can now focus on its viable medical technologies and pharmaceutical divisions. In fairness, JNJ hasn’t been a great performer this year, losing about 17%. Nevertheless, this could be a discounted opportunity for patient buyers. Certainly, the immediate circumstances don’t look too hot. Following a generally solid quarterly report, two analysts downgraded their per-share price expectations of JNJ. However, with the sentiment drag, JNJ now trades at a trailing earnings multiple of only 10.96x. For context, the sector median for the drug manufacturing industry comes in at 23.04x. It remains a consistently profitable enterprise, which helps lift the forward yield to 3.23%. Just as well, the payout ratio sits at only 44.1%, while the company commands 61 years of consecutive dividend increases. That’s reliability you can trust. Overall, analysts peg JNJ a moderate buy with a $176.95 target, implying almost 20% upside. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com Moving toward the riskier ideas among dividend aristocrats, NextEra Energy (NYSE:NEE) on paper carries an attractive profile. Per its website, NextEra bills itself as one of the nation’s largest capital investors in renewable infrastructure. Combined with the broader political and ideological push for green energy solutions, NEE would seem compelling. Arguably, it very much is but will require substantial patience. Since the beginning of the year, NEE dropped about 31% of equity value, an obviously steep erosion. Technically speaking, investors must also hope that the rally from early October doesn’t become a dead-cat bounce. As Barron’s pointed out a few days ago, the renewable energy sector has collapsed. Only a few may be ready for a bounce back, adding to the pressure. Still, if you’re focused on dividend stocks to buy for income, NextEra might be difficult to ignore. It features a 3.27% forward yield with a reasonable payout ratio of 55%. Also, it enjoys 29 years of consecutive dividend increases. Analysts rate NEE a moderate buy with a $17 price target, projecting 23% growth. Target (TGT) Source: Sundry Photography / Shutterstock.com If you want to roll the dice with your dividend aristocrats, big-box retailer Target (NYSE:TGT) might be worth consideration. Granted, the overall high-inflation environment (not withstanding the most recent inflation data) isn’t great for consumer sentiment. So, betting on a retailer carries natural risks. If you don’t think so, just look at the TGT chart. Since the January opener, it fell roughly 27%. Nevertheless, it’s possible that fading spend in other areas can filter down to the retail segment. For example, the revenge travel phenomenon could be in trouble. But that also might help entities like Target under the trade-down effect. Basically, consumers may spend down for to acquire more bang for the buck in terms of entertainment value. In other words, retail revenge could make a comeback. To add to the tempting concoction, Target offers a forward yield of 3.99%. Also, the payout ratio is doable at 49.9%, while the company itself enjoys 52 years of consecutive dividend increases. Analysts peg shares as a moderate buy with a $143.69 target, implying 29% upside. IBM (IBM) Source: shutterstock.com/LCV From a cursory perspective, IBM (NYSE:IBM) couldn’t get more boring if it tried. Yes, it’s a technology stalwart but it’s also a legacy one. These days, seemingly everyone wants to jump on the hype train involving artificial intelligence or the blockchain. But that’s also the underappreciated the narrative of “Big Blue.” It’s been involved in AI for longer than perhaps most other entities. At only 6% up since the January opener, IBM stock is nowhere near as attractive as some of the three-baggers we’ve seen in the tech space. That said, in the trailing half-year period, IBM gained 22% of equity value. In the past month, it’s up over 8%. Something seems to be cooking and it may be that investors are finally understanding IBM’s incredible acumen in AI along with a host of other innovations. Also, let’s not forget it’s a top player among dividend aristocrats. Right now, the company offers a forward yield of 4.42%. And while the payout ratio is elevated at 66.79%, it’s not terribly so. Okay, analysts don’t really see much upside from here. However, if you’re looking for dividend stocks to buy for income, I believe you can trust Big Blue. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia. More From InvestorPlace Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Storm-Proof Income: 7 Dividend Aristocrats to Fortify Your Portfolio appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-14	NEE	Shares of utilities NextEra Energy (NYSE: NEE), NextEra Partners (NYSE: NEP), Hawaii Electric (NYSE: HE), and Brookfield Renewable Corporation (NYSE: BEP) were rallying today, up 5.6%, 6.6%, 6.1%, and 8.6%, respectively, as of 3:22 p.m. ET. These stocks have been beaten down this year in a rare volatile year for utilities, which are often seen as defensive stocks. Hawaii Electric had its own company-specific disaster after the fatal wildfires in Maui this summer and potential liability stemming from that. However, the entire utility sector -- especially those companies with high exposure to renewable projects -- has been especially depressed due to surging interest rates this year. But this morning, the Bureau of Labor Statistics released October inflation data, showing a softer-than-expected reading. That could pave the way for lower interest rates, thereby reversing the massive rate headwinds investors have seen this year. Is the inflation fever finally easing? The October Consumer Price Index showed a 3.2% increase over the past year and was flat month over month. Both of those readings were below expectations, and marked a deceleration from the 3.7% year-over-year and 0.4% month-over-month increase in September. Energy prices helped the decline in the CPI, but even on a "core" basis, stripping out volatile food and energy prices, inflation also came in lower than expected, at 4% year over year and 0.2% month over month. Today's lower inflation readings sparked enthusiasm that the Federal Reserve may be done raising interest rates, and may begin to lower them. That's great news -- although some investors believe that won't happen without the U.S. enduring some sort of recession. If a recession is the price to pay for lower inflation, utility stocks are still likely to benefit. This is because people don't cut their power usage during a recession, and utility rates are usually fixed for a period of time -- typically one year. Given ongoing grid hardening, distribution and transmission investments, and investments utilities are making in renewables, utility rates are likely to continue rising. Image source: Getty Images. Lower interest rates are likely to especially help renewables-focused utilities like NextEra. This is because NextEra uses its yieldco NextEra Partners to buy projects from it, after which NextEra Energy recycles capital into new projects. As NextEra Partners pays out basically all its funds from operations as dividends to shareholders, it's dependent on debt and equity markets to then acquire new projects. But as interest rates rose violently this year, NextEra Partners' stock fell, making it more dilutive to sell stock or debt in order to buy projects. That caused the model to become "stuck," and therefore limited the flow of new projects. However, lower interest rates could pave the way for a higher stock price, which would enable NextEra Partners to sell stock or raise debt and fund new projects, which could restart its growth flywheel again. NextEra Partners is still down by some 67% from its price to start the year, so it still has work to do. Still, today could be a promising start. A similar dynamic played out with Brookfield Renewables, which invests in hydroelectric, wind, and solar projects. Brookfield is not exclusively dependent on capital markets as NextEra Partners is, as it sometimes recycles owned projects to raise cash to buy new ones, but it does also raise money from debt or equity markets to buy projects. Thus, it is also dependent on interest rates that affect not only valuation, but also its ability to buy more projects and grow. Finally, Hawaii Electric is in some serious trouble following this summer's wildfires. On its recent conference call, management noted it would not be able to file its quarterly filings on time, as the company has to deal with funding a new state fund to compensate victims, as well as defend itself in 64 other ongoing lawsuits. Still, companies that are in trouble, or that have significant debt and may need to raise additional capital, would also benefit from lower interest rates. In fact, easing financial conditions could mean the difference between staying afloat and bankruptcy. Lower interest rates ease gravity on all asset prices Warren Buffett once said, "Interest rates are to asset prices what gravity is to the apple." And while that is true of all assets, some stocks may not go up in a lower rate environment if the economy contracts and earnings go down. But utilities are usually recession resistant. It's still too soon to tell if the current bout of disinflation will lead to a "soft landing" with no recession, or if a recession will occur in the future. But in either scenario, utilities would benefit, which is why they are rocketing higher today. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-14	NEE	In this piece, I evaluated two energy stocks, Hess (NYSE:HES) and NextEra Energy (NYSE:NEE), using TipRanks' comparison tool to determine which is better. A deeper analysis suggests a neutral view for Hess and a bullish view for NextEra Energy. Hess is an independent energy company that engages in the exploration and production of crude oil and natural gas. On the other hand, NextEra Energy is one of the largest capital investors in infrastructure in the U.S., with a goal of leading the nation's decarbonization efforts. After tumbling 8% in the last three months, shares of Hess are up 7.9% year-to-date but down 2.7% for the last 12 months. Meanwhile, NextEra Energy stock is off 30% year-to-date after plummeting 14% over the last three months. The shares are off 33% for the last 12 months. While such a dramatic difference in year-to-date stock-price performance would usually be notable, there is one critical point that sets these two stocks apart. Hess' valuation is essentially linked to that of Chevron (NYSE:CVX) due to its pending acquisition (more on that below). Thus, two different methods are needed to gauge the valuations of these two companies. Hess (NYSE:HES) At its current price of around $143 a share, Hess is trading in line with Chevron's current price of $144 per share. Due to the way the pending acquisition was priced, these two stocks should be trading roughly in line with each other. Thus, a neutral view seems appropriate — barring any major sell-off in Hess shares that drops them significantly below Chevron's price. When the deal was originally announced in late October, Chevron said it had agreed to acquire all of Hess' outstanding shares in an all-stock transaction valued at $53 billion, which amounted to $171 per share. Thus, it's understandable that many analysts would set their price targets around the $171 level. However, what complicates the matter is the fact that this is an all-stock deal. In fact, the terms of the deal have Hess shareholders receiving 1.025 Chevron shares for every Hess share they own. Thus, wherever Chevron's share price goes, Hess' price should follow because shareholders won't actually receive $171 per share as the original offer stated. They'll receive just slightly more than one Chevron share for every Hess share, making these two stocks essentially equal for now. What is the Price Target for HES Stock? Hess has a Moderate Buy consensus rating based on seven Buys, eight Holds, and zero Sell ratings assigned over the last three months. At $172.14, the average Hess stock price target implies upside potential of 19.9%. NextEra Energy (NYSE:NEE) NextEra Energy is an interesting stock because it sits at the intersection of clean energy and the utility sector, combining the benefits of a green-energy stock with the stability of a utility stock. A closer look suggests a bullish view might be appropriate due to the company's growing profitability, plunging valuation, and attractive dividend. At a price-to-earnings (P/E) ratio of 14.4, NextEra Energy is trading at a steep discount to its mean P/E of 42.4 since February 2019. For comparison, the renewable energy industry is trading at a P/E of 44.7. While the P/E ratio is often an excellent way to value companies, one other multiple commonly used for energy and utility companies is the enterprise-value-to-EBITDA (EV/EBITDA) ratio. This ratio compares a company's total value to its overall profitability and financial performance, with EBITDA meaning "earnings before interest taxes, depreciation, and amortization." This ratio reduces the amount of volatility in this stock's valuation, as NextEra is currently trading at an EV/EBITDA multiple of 12.8 versus its mean ratio of 22.9 since February 2019. In short, the company's valuation has plummeted since September 2022, when it was trading at an EV/EBITDA multiple of around 37.3. However, NextEra Energy's profitability has been growing steadily, as evidenced by its net income margin of 28% over the last 12 months, up from 20% in 2022, 21% in 2021, and 16% in 2020. Clearly, this company isn't going anywhere, and it's been sharing its profits with shareholders. Like many utility stocks, NextEra Energy also pays a dividend with a current yield of 3.3%, which is quite attractive versus the sector average of 2.992%. The company has also boosted its dividend annually for the last 10 straight years, which is another mark of a strong dividend stock. Based on the positive trends discussed above, the year-to-date selloff in NextEra shares is likely due to the industry-wide selloff in clean-energy stocks rather than there being anything specifically wrong with this company. Notably, the Nasdaq Clean Edge Green Energy Index is down about 23% year-to-date. What is the Price Target for NEE Stock? NextEra Energy has a Moderate Buy consensus rating based on 14 Buys, three Holds, and one Sell rating assigned over the last three months. At $71, the average NextEra Energy stock price target implies upside potential of 23.4%. Conclusion: Neutral on HES, Bullish on NEE Although Hess and NextEra Energy operate in the same industries, different valuation methods are needed for each. For Hess, the pending acquisition essentially pegs its shares to Chevron shares, making judging its valuation simple. That deal is expected to close sometime in the first half of 2024. On the other hand, NextEra Energy's key valuation multiple, the EV/EBITDA ratio, shows that its valuation has been plummeting over the last year despite its growing profitability. Thus, NextEra's valuation should revert to the mean at some point. In the meantime, its growing dividend payout, which is relatively high for its industry, makes it a worthy addition to a dividend stock portfolio. Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-14	NEE	For Immediate Release Chicago, IL – November 14, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB. Here are highlights from Monday’s Analyst Blog: Top Stock Reports for Apple, Broadcom and Adobe The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Broadcom Inc. and Adobe Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Apple shares have only modestly done better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services' year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12. Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons. (You can read the full research report on Apple here >>>) Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom's prospects. Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year. (You can read the full research report on Broadcom here >>>) Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe's commerce offerings and growing adoption of Acrobat. The Zacks analyst remains optimistic about Adobe's market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion. (You can read the full research report on Adobe here >>>) Other noteworthy reports we are featuring today include NextEra Energy, Inc. and Enbridge Inc. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-14	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap value stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-13	NEE	Monday, November 13, 2023 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> Apple shares have only modestly done better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12. Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons. (You can read the full research report on Apple here >>>) Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects. Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year. (You can read the full research report on Broadcom here >>>) Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion. (You can read the full research report on Adobe here >>>) Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Marsh & McLennan Companies, Inc. (MMC) and Enbridge Inc. (ENB). Director of Research Sheraz Mian Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Strong Demand for Networking Products Aids Broadcom (AVGO) Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Featured Reports NextEra (NEE) Gains from Steady Investment, Renewable Focus Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability. Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High Per the Zacks analyst, a number of acquisitions help Marsh & McLennan expand geographically, and diversify its portfolio. Yet, escalating expenses continue to weigh down margins. Enbridge (ENB) Gains On Long-term Transportation Contracts Enbridge generates stable fee-based revenues from its long-term oil and gas transportation contracts. Yet, its significant debt exposure concerns the Zacks analyst. Solid Net Sales Orders Aid D.R. Horton (DHI), High Costs Ail Per the Zacks analyst, increased net sales orders and affordability initiatives aid D.R. Horton. However, inflated costs and high mortgage rates mar prospects. Solid In-force Business Aids Reinsurance Group (RGA) Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earning Qorvo (QRVO) Rides on Healthy Demand, Portfolio Strength Per the Zacks analyst, rising demand for key components across the android smartphone ecosystem and healthy traction in automotive, defense and aerospace will likely boost Qorvo's margins. Under Armour's (UAA) Direct-To-Consumer Unit Performs Well Per the Zacks analyst, Under Armour's direct-to-consumer (DTC) business is exhibiting strength and aiding its overall performance. DTC revenues increased 3% during second-quarter fiscal 2024. New Upgrades Strong Booking Trends Aid Royal Caribbean's (RCL) Prospects Per the Zacks analyst Royal Caribbean is benefiting from solid bookings with respect to North America and European sailings. Also, strong pricing and solid onboard spending bodes well. End-Market Strength to Aid Applied Industrial (AIT) Per the Zacks analyst, strength across the food and beverage, lumber and wood, mining, pulp and paper among other end markets bodes well for the company. Acquired assets are driving the top line. Xifaxan Boosts Bausch (BHC), Efforts to Restructure Look Good Per the Zacks analyst, Bausch maintains momentum on strong growth of Xifaxan. The company's efforts to restructure business by separating eye health business and reduce debt are encouraging. New Downgrades Weakness in Construction Materials Unit Hurts Carlisle (CSL) Per the Zacks analyst, Carlisle is struggling with the poor performance of the Carlisle Construction Materials segment due to project delays and uncertainty caused by higher interest rates. Higher Costs, Geopolitical Woes Hurt Moelis & Company (MC) Per the Zacks analyst, elevated costs due to Moelis & Company's hiring spree and rising inflation will hurt profits. Geopolitical and macroeconomic concerns add to ambiguity in the operating backdrop. Softness in Biopharma Business Impede Bio-Rad (BIO) Growth The Zacks analyst is worried about Bio-Rad witnessing reduced demand from biopharma customers for its process chromatography resins. 4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." Zacks Investment Research has just released an urgent special report to help you bank on this trend. In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. Download your free report now to see them. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-13	NEE	To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments. In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET NextEra Energy Inc (Symbol: NEE) $55.14 $71.38 29.46% Nordson Corp. (Symbol: NDSN) $225.11 $261.14 16.01% Carlisle Companies Inc. (Symbol: CSL) $268.52 $306.25 14.05% International Flavors & Fragrances Inc. (Symbol: IFF) $71.74 $80.69 12.48% Ecolab Inc (Symbol: ECL) $177.90 $194.13 9.12% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL NextEra Energy Inc (Symbol: NEE) 3.39% 29.46% 32.85% Nordson Corp. (Symbol: NDSN) 1.21% 16.01% 17.22% Carlisle Companies Inc. (Symbol: CSL) 1.27% 14.05% 15.32% International Flavors & Fragrances Inc. (Symbol: IFF) 4.52% 12.48% 17% Ecolab Inc (Symbol: ECL) 1.19% 9.12% 10.31% Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another. STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH NextEra Energy Inc (Symbol: NEE) $1.66 $1.829 10.18% Nordson Corp. (Symbol: NDSN) $2.18 $2.63 20.64% Carlisle Companies Inc. (Symbol: CSL) $2.37 $3.1 30.80% International Flavors & Fragrances Inc. (Symbol: IFF) $3.18 $3.24 1.89% Ecolab Inc (Symbol: ECL) $2.04 $2.12 3.92% These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on IFF — FREE Get the latest Zacks research report on ECL — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Materials Dividend Stock List Top Ten Hedge Funds Holding AESE Institutional Holders of COPX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-12	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap value stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-10	NEE	The NASDAQ 100 After Hours Indicator is down -6.48 to 15,522.64. The total After hours volume is currently 97,898,925 shares traded. The following are the most active stocks for the after hours session: Newmont Corporation (NEM) is +0.06 at $34.26, with 6,440,777 shares traded. As reported by Zacks, the current mean recommendation for NEM is in the "buy range". Core & Main, Inc. (CNM) is -0.0015 at $31.45, with 5,330,507 shares traded. As reported by Zacks, the current mean recommendation for CNM is in the "buy range". NextEra Energy, Inc. (NEE) is unchanged at $55.14, with 2,657,514 shares traded. As reported by Zacks, the current mean recommendation for NEE is in the "buy range". Kenvue Inc. (KVUE) is +0.05 at $19.20, with 1,617,160 shares traded. As reported by Zacks, the current mean recommendation for KVUE is in the "buy range". Wells Fargo & Company (WFC) is unchanged at $40.89, with 1,466,890 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $1.24. As reported by Zacks, the current mean recommendation for WFC is in the "buy range". Kinder Morgan, Inc. (KMI) is +0.01 at $16.45, with 969,607 shares traded. KMI's current last sale is 82.25% of the target price of $20. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-10	NEE	By Clark Mindock Nov 10 (Reuters) - The developer of the Mountain Valley Pipeline has sued two protesters it says blocked construction on the $7.2 billion natural gas project, seeking compensation and orders barring them from interfering in the future. Mountain Valley Pipeline LLC sued Daniel Guidry and Ashley Stecher Wagner on Wednesday in federal court in Roanoke, Virginia, claiming they coordinated with others to illegally attach themselves to the land and construction equipment being used to build a segment of the pipeline in the Jefferson National Forest last month. The lawsuit said law enforcement ultimately removed the protesters after sawing through devices anchoring them in place, and said the removal process caused "substantial delays and expenses" for the developer. The developer said it has a right to build the pipeline in the Virginia forest and that the obstruction violated that right. The lawsuit noted Congress expressly ratified federal approvals for the 303-mile (488-km) pipeline running through West Virginia and Virginia earlier this year. The developer is asking for undisclosed compensatory and punitive damages, and an injunction barring Guidry and Wagner from entering the construction area, blocking access to it or helping others interfere with construction. Mountain Valley is owned by units of Equitrans Midstream, as well as NextEra Energy NEE.N, Consolidated Edison ED.N and RGC Resources RGCO.O among others. The pipeline was initially projected to be finished by late 2018 but was delayed by numerous legal challenges filed by environmental groups that claimed it would cause environmental damage and increase the use of climate change-causing natural gas. Supporters of the project have said it is key to further unlocking Appalachian gas and bolstering American energy security. The Richmond-based 4th U.S. Circuit Court of Appeals ended most of the remaining legal challenges to the project in August, months after Democrats and Republicans in Congress struck a debt limit deal that included express authorizations for the pipeline. The project is now expected to be finished in the first quarter of 2024. This past summer, the developer also sued protesters in state court for obstructing construction on remaining portions of the pipeline. The case is Mountain Valley Pipeline v. Daniel Guidry and Ashley Stecher Wagner, in the U.S. District Court for the Western District of Virginia, case No. 7:23-cv-00727. For Mountain Valley: Wade Massie and Seth Land of Penn Stuart & Eskridge For the protesters: Counsel information not immediately available Read more: US appeals court rejects challenge to Mountain Valley pipeline Biden signs debt limit bill, avoiding U.S. default (Reporting by Clark Mindock) ((Clark.Mindock@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-10	NEE	Hawaiian Electric Industries, Inc. HE reported earnings per share (EPS) of 56 cents in the third quarter of 2023, meeting the Zacks Consensus Estimate. The bottom line, however, dropped 1.7% from 57 cents reported in the prior-year quarter. Including special items, the company reported GAAP EPS of 37 cents per share compared with 57 cents reported in the prior-year quarter. Total Revenues Hawaiian Electric reported total revenues of $901.9 million in the third quarter of 2023. Revenues declined 13.5% year over year from $1,042.2 million. Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise Hawaiian Electric Industries, Inc. price-consensus-eps-surprise-chart \| Hawaiian Electric Industries, Inc. Quote Segment Details Electric Utility: Revenues in this segment totaled $794.9 million, down 16.8% year over year. Banking: In this segment, revenues totaled $100.9 million, up 24% year over year. Others: Revenues from other sources improved 22.8% to $5.9 million from $4.8 million in the year-ago quarter. Operating Statistics Total expenses dropped 12.1% year over year to $826.8 million in the third quarter. Total operating income fell 26.4% year over year to $75.1 million in the third quarter. Net interest expenses amounted to $32.6 million in the quarter, up 22.6% from $26.6 million in the prior-year quarter. Zacks Rank Hawaiian Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Recent Utility Releases DTE Energy CompanyDTE reported third-quarter 2023 operating earnings per share (EPS) of $1.44 per share, missing the Zacks Consensus Estimate of $1.72 by 16.3%. The bottom line declined 10% from the year-ago quarter’s reported figure of $1.60 per share. The operating net income in the quarter was $298 million compared with $311 million in the year-ago period. PG&E Corporation’s PCG adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line fell 17.2% from the year-ago quarter’s reported figure. In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%. NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter’s levels. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources. For the third quarter, NextEra’s operating revenues were $7,172 million, lagging the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line rose 6.7% year over year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows. It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report DTE Energy Company (DTE) : Free Stock Analysis Report Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-10	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap value stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-09	NEE	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $275.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 123,950,000 to 125,100,000). Among the largest underlying components of IWB, in trading today NextEra Energy Inc (Symbol: NEE) is off about 2.1%, Stryker Corp (Symbol: SYK) is down about 1.2%, and Intuitive Surgical Inc (Symbol: ISRG) is lower by about 1%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $206.23 per share, with $252.935 as the 52 week high point — that compares with a last trade of $239.28. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs had notable inflows » Also see: Institutional Holders of BONE CSM YTD Return NFRA Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-09	NEE	A twin downgrade from a researcher put the stock of NextEra Energy (NYSE: NEE) and the units of its yieldco NextEra Energy Partners (NYSE: NEP) in the bear cave on Thursday. Both saw pronounced declines with Partners taking the worst of it -- the yieldco's unit price closed the day 12% lower, while NextEra Energy sank by 5%. The double cut hurt The researcher in question was Seaport Global Securities' Angie Storozynski. She reduced her recommendation on both NextEra Energy and NextEra Energy Partners to sell from the previous neutral. Storozynski's price targets on the two securities are $44 and $15.50 per share, respectively. The analyst's driving concern with NextEra Energy is the quality and sources of its earnings, which make its valuations much less attractive -- Storozynski said they leave the stock priced at a 41% P/E premium to other electric utility stocks. She also cited the company's short-term debt load as being a factor behind the move. As for NextEra Energy Partners, she wrote that she doubts the partnership -- which is a publicly traded subsidiary of NextEra Energy -- will be able to maintain its recent growth in unitholder distributions. A great attraction of a yieldco is those distributions, so any slowdown in their growth might lead to a sell-off. The analyst wrote that she fully expects a significant cut in Partners' distributions by the end of 2024. Recent sales won't stop payout growth erosion Storozynski's rather critical pair of notes on the NextEra relatives comes only a few days after Partners announced it is selling its STX Midstream natural gas pipeline network for slightly under $1.82 billion to Kinder Morgan. In her view, while the deal has a juicy price tag, it won't help the company maintain its recent levels of distribution growth. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan and NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-09	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Once darlings of Wall Street, clean tech stocks have stumbled, buffeted by the winds of rising interest rates. The iShares Global Clean Energy ETF (NYSEARCA:IXC), a bellwether for the industry, nosedived to a low unseen since the summer of 2020. Nevertheless, these stocks are resting on the bedrock of supportive government policies despite the current market turbulence. The market punditry, adept at sniffing out overbought markets, may be quick to label the slump as a bubble’s last gasp. Yet, forward-looking investors recognize the long-term allure of clean tech stocks, with the sector positioned at the vanguard in the fight against global warming, suggesting a brighter horizon beyond today’s volatility. Consequently, the potential for clean tech stocks to rebound remains a compelling proposition. Enphase Energy (ENPH) Source: T. Schneider / Shutterstock.com Enphase Energy (NASDAQ:ENPH) is a true maven in the clean tech space, which continues to push the envelope with its robust energy-efficient solar solutions. Its innovative inverters are at the heart of its solar systems, which continue to convert skeptics into believers of sustainable energy. Yet, the company isn’t resting on its laurels; it’s charging ahead with aplomb with an all-encompassing home energy system, complete with solar storage and an EV charger, positioning itself for an even greener future. Sure, there was a hiccup in its revenue growth last quarter, but it’s likely to be a cloud passing over a sunny forecast for the company. History points to its knack for pulling double-digit growth in revenue and EPS consistently. Consequently, those numbers are like a rising tide, expected to lift the stock higher for investors who can stomach the volatility. Furthermore, with interest rates forecasted to retract, Enphase’s stock appears ready for an incredible resurgence. When the financial climate cools, Enphase’s stock might heat up, which currently trades at an attractive 15.5 times forward cash flow estimates. Tesla (TSLA) Source: ssi77 / Shutterstock.com Tesla (NASDAQ:TSLA), a giant in the realm of sustainable tech, is not just electrifying the auto industry but redefining our entire approach to energy. With its growing fleet of groundbreaking electric vehicles leading the charge, Tesla has become a torchbearer in the crusade against fossil fuels. Moreover, its strides in battery storage and solar solutions have essentially led to a broader transformation, underpinning Tesla’s position as a harbinger of a greener, tech-centric era. This tech giant isn’t coasting on its laurels. With its eyes on producing 20 million EVs annually by 2030, the company is revving up for expansion, eyeing burgeoning markets, including India and Indonesia, for newer factory locations. Its robust lineup, from the Cybertruck to the Semi, is poised to keep the delivery momentum going and add new layers to its growth story. Financially, Tesla is sitting in the driver’s seat with a substantial $8.9 billion in operating cash flow and $26 billion in cash reserves as of the first nine months of 2023, showcasing robust fiscal health. Its financial firepower positions it to accelerate its incredibly ambitious growth strategies. Moreover, with the stock dipping 11% recently, it’s perhaps an opportune moment for long-term investors to consider loading up on it for the long haul. NextEra Energy (NEE) Source: madamF / Shutterstock.com NextEra Energy (NYSE:NEE) is essentially a bedrock in the utility landscape, illuminating Florida’s energy sector through robust generation and distribution. Despite the headwinds encountered by its business at this time, the company holds a beacon of stability in a volatile market. In a gesture that reaffirms its commitment to shareholders, NextEra Energy declared a promising quarterly dividend of 46 cents per share, maintaining an attractive forward yield of more than 3.15%. Set against the backdrop of a dividend-conscious investor base, this move shines a light on the company’s unwavering pledge to return value to its shareholders. Strategically streamlining its portfolio, NextEra’s subsidiary orchestrated a sale of Florida City Gas, passing the torch to Chesapeake Utilities (NYSE:CPK). This $923 million deal in cash is a testament to NextEra’s dedication to optimizing its powerful asset portfolio, strengthening its core and paving the way for a fortified fiscal trajectory. On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The Sustainable Investor’s Dream: 3 Clean Tech Stocks Making a Real Difference appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-09	NEE	Believe it or not, seniors fear running out of cash more than they fear dying. And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That's because the traditional ways people manage retirement may no longer provide enough income to meet expenses - and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period. Retirement investing approaches of the past don't work today. Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over. The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million. In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035. How can you avoid dipping into your principal when the investments you counted on in retirement aren't producing income? You can only cut your expenses so far, and the only other option is to find a different investment vehicle to generate income. Invest in Dividend Stocks As a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. Going beyond those familiar names, you can find excellent dividend-paying stocks by following a few guidelines. Look for companies that pay a dividend yield of around 3%, with positive annual dividend growth. The growth rate is key to help combat the effects of inflation. Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. NextEra Energy (NEE) is currently shelling out a dividend of $0.47 per share, with a dividend yield of 3.25%. This compares to the Utility - Electric Power industry's yield of 3.7% and the S&P 500's yield of 1.7%. The company's annualized dividend growth in the past year was 10%. Check NextEra Energy (NEE) dividend history here>>> Orrstown Financial Services (ORRF) is paying out a dividend of $0.2 per share at the moment, with a dividend yield of 3.7% compared to the Banks - Northeast industry's yield of 3.04% and the S&P 500's yield. The annualized dividend growth of the company was 5.26% over the past year. Check Orrstown Financial Services (ORRF) dividend history here>>> Currently paying a dividend of $0.37 per share, PNM Resources (PNM) has a dividend yield of 3.48%. This is compared to the Utility - Electric Power industry's yield of 3.7% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 5.76%. Check PNM Resources (PNM) dividend history here>>> But aren't stocks generally more risky than bonds? Overall, that is true. But stocks are a broad class, and you can reduce the risks significantly by selecting high-quality dividend stocks that can generate regular, predictable income and can also decrease the volatility of your portfolio compared to the overall stock market. Combating the impact of inflation is one advantage of owning these dividend-paying stocks. Here's why: many of these stable, high-quality companies increase their dividends over time, which translates to rising dividend income that offsets the effects of inflation. Thinking about dividend-focused mutual funds or ETFs? Watch out for fees. If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges. Bottom Line Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks. Top 5 ChatGPT Stocks Revealed Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.” Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report PNM Resources, Inc. (PNM) : Free Stock Analysis Report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-08	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips As nations rally around green initiatives, green energy stocks are gaining prominence, driven by major policy tailwinds. The U.S. is targeting a 52% cut in emissions, and China is on a path to neutralize its CO2 emissions over the next four decades. Moreover, the energy transition is anchored in rising demand. The International Energy Agency underscores this shift and predicts that renewables will satisfy more than 90% of the burgeoning global energy appetite by 2025. And with Morningstar forecasting a 1.4% annual uptick in U.S. electricity consumption through 2032, the growth trajectory for clean energy remains evident. Moreover, discerning investors are eyeing the renewable energy space with keen interest. Below, we explore three top renewable energy stocks that stand out for their potential to capitalize on this green transition. NextEra Energy (NEE) Source: ConceptCafe/Shutterstock NextEra Energy (NYSE:NEE) remains a pivotal player in Florida’s energy sector and vital to the region’s electricity supply chain. Moreover, its most recent third-quarter report showcases a sturdy operational performance with adjusted earnings rising to $1.92 billion, or 94 cents per share, from last year’s $1.68 billion, or 85 cents per share. Through its subsidiary Florida Power & Light Company, NextEra Energy is streamlining its operations by selling Florida City Gas to Chesapeake Utilities Corporation (NYSE:CPK) for a sizable $923 million. The commitment to shareholder value is evident in the announced regular quarterly dividend of 46 cents per share, set for distribution in mid-December. Furthermore, the company’s EBITDA soared by 90.78% year-over-year, a significant increase of 1034.7% when measured against the sector median of 8%. Even more compelling is the forward return on equity growth, posting at 15.88%, a figure that eclipses the sector median of 0.50% by an overwhelming 3050%. This growth reflects NextEra’s robust resilience against economic headwinds. Enbridge (ENB) Source: JHVEPhoto / Shutterstock.com Enbridge (NYSE:ENB) is a key player in energy transport and distribution and delivered a solid financial showing in the recent quarter. The company reported a 3% rise in adjusted EBITDA to $3.9 billion and a substantial increase in operating cash flow from $2.1 billion to $3.1 billion over the previous year, signaling robust operational health. Moreover, Enbridge is advancing its infrastructure ambitions by building the Rio Bravo pipeline, a key conduit for the Rio Grande LNG project’s natural gas supply. This move exemplifies the company’s commitment to tapping into energy sector growth. Furthermore, its strategic acquisitions of The East Ohio Gas Company and Questar Gas Company should bolster Enbridge’s natural gas network, likely to drive long-term value. Recently, Enbridge reported an impressive forward free cash flow per share growth of 49.12%, substantially exceeding the sector median of 11.84%. This performance indicates a healthy financial trajectory in a competitive energy market. Dominion Energy (D) Source: Felix Mizioznikov / Shutterstock.com Dominion Energy (NYSE:D) is carving out a leadership role in renewable energy with the expansion of its $9.8 billion offshore wind project. Once operational, this initiative is likely to claim $3 billion in tax credits and slightly raise customer bills by an estimated $4 monthly in Virginia, reflecting a balance between growth and customer impact. Dominion has outlined plans for over 12 new solar projects in Virginia. Upon completion, these initiatives have the potential to power around 200,000 homes and could secure additional tax credits under the Inflation Reduction Act. Financially, Dominion’s revenue growth stands at 10.47%, outperforming the sector median of 7.24%, and its operating cash flow has soared by 75.21%, greatly exceeding the sector median of 19.3% by a jaw-dropping 289%. Clearly, the company is strategically in a position to capitalize on the escalating demand for electricity. Coupled with a substantial dividend yield of 6%, the company presents a unique investment opportunity for steady income and growth. On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Renewable Revolution: 3 Green Energy Stocks Outshining Their Peers appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-08	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips With oil prices falling below $80 in early November, it may look like the rally in energy stocks is over. But rumors of oil’s demise may be greatly exaggerated. There is still time to look at energy stocks to buy for growth. On November 7, 2023, the Energy Information Administration (EIA) slightly lowered its 2024 outlook for crude oil prices. The new number of $89.24 a barrel is 1.8% lower than the agency’s October forecast. The agency says prolonged concern over potential supply disruptions in the Middle East will keep a high floor on oil prices. But there may be more to support a floor for oil above $80. Next year, analysts are calling for supply constraints of about one million barrels a day. That supply has to come from somewhere, but it won’t be from the OPEC+ nations. They have no intention of raising production output anytime soon. On the other hand, if demand does fall, that would be a sign that the long-predicted recession is finally here. But in that scenario, it could prompt the Federal Reserve to cut interest rates, which would be bullish for oil demand. There’s lots of uncertainty, but rather than turning away from energy stocks, this looks like a time to find energy stocks to buy for growth. Here are three candidates for your investment dollars. Chevron (CVX) Source: Sundry Photography / Shutterstock.com Chevron (NYSE:CVX) stock is down 20% in 2023 and has plunged below its 200-day simple moving average. Several factors weigh on the stock. First, earnings in the company’s third quarter came in 20% below estimates at $3.05 per share. Some analysts are also concerned about the company’s planned acquisition of Hess (NYSE:HES) in a $53 billion all-stock deal that will be finalized in early 2024. With all that said, this company has a strong balance sheet and a history of providing shareholder value through share buybacks and a dividend that currently pays investors $1.51 per share every quarter. Chevron has already indicated that the dividend will likely be raised once the deal with Hess is complete. The company also says the annual capex spend for the combined company will be between $19 and $22 billion. Trading near its 52-week low and at 10x forward earnings, Chevron appears attractively valued as one of the energy stocks to buy for growth. Kinder Morgan (KMI) Source: JHVEPhoto / Shutterstock.com The case for including Kinder Morgan (NYSE:KMI) on a list of energy stocks to buy for growth is simple. No matter how many barrels of oil are pumped, it has to reach a final destination. That’s where a midstream specialist like Kinder Morgan shines brightest. The company’s network of pipelines spans 95,000 miles through the United States and Canada. And that network is going to grow. On November 6, 2023, Kinder Morgan announced it was acquiring the South Texas assets of NextEra Energy (NYSE:NEE) for $1.8 billion. That should be enough to draw attention away from the company’s earnings miss in October. The stock is down 8% in 2023 but recently broke below its 200-day simple moving average and is trading around its 52-week low. And while investors wait for the stock to turn around, Kinder Morgan has an attractive dividend that currently has a yield of 6.83%. SLB (SLB) Source: Valentin Martynov / Shutterstock.com So far, this list has included one integrated oil company and one midstream company. SLB (NYSE:SLB) is an oil services company formerly known as Schlumberger. The company has rebranded itself as a global technology company. That hasn’t done much for SLB stock, which is flat for the year. However, the company will likely benefit as companies like Exxon Mobil (NYSE:XOM) and Chevron increase their drilling and exploration investments. The company’s revenue and earnings will also get a boost from Saudi Arabia, which announced a $100 billion drilling budget between 2023 and 2025. Like the other stocks on this list, putting a floor on revenue and earnings allows analysts to focus on the company’s improved balance sheet and increase its dividend after cutting it in 2020. On the date of publication, Chris Markoch had a LONG position in CVX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Energy Stocks to Buy for Growth Investors appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-08	NEE	I n Q3 of this year we collected a total of 18,958 unique insider purchases across give or take 2,400 publicly traded U.S. firms. In today's piece, we will focus our discussion and analysis exclusively on those companies which fall into the large-cap category, but the recurring series will be followed up with a third-quarter installment covering small-caps and mid-caps. For the purposes of this article, we defined large-cap companies as publicly listed firms with market caps larger than $10 billion. Below is our list of research-worthy large-caps that, in our view, enjoyed a period of unusual and atypical interest from corporate insiders during the third quarter of the year and are worthy of further research. Exxon Mobil (XOM): Active Corporate Insiders: 1 YTD Performance: -0.25% Total Bought Back: $69,409,630 Average Purchase Price: $106 This is being written on the day of the natural gas giant's Q3 earnings report, so fitting that it also be somewhat of the highlight of our quarterly large-cap insider coverage. While not an entirely diversified insider buying effort, just director Jeffrey Ubben, amongst the large-cap stocks we looked at this quarter, XOM saw significantly more volume than anything else. The next closest was Energy Transfer LP (ET) where insiders bought around $25 million in stock this quarter. Mr. Ubben bought a total of 65,000 shares over a two-day span from July 31st to August 1st during which XOM traded in the $105-107 range. As for the company's most recent earnings in addition to its overall fundamentals there's probably more to discuss than can fit into the scope of this article. The company made headlines just several weeks ago when it announced it would buy Pioneer Natural Resources for around $60 billion, making it the largest shale producer in the Permian Basin. Q3 earnings revealed profits fell 54% from a year ago, likely thanks to falling oil prices and demand, and EPS missed expectations by about 5% at $2.25. However net profits rose 15% QoQ and will result in an increased quarterly dividend for shareholders. The stock trades at an attractive P/E ratio of about 8x and a very nice debt to equity ratio of 0.75x. Following the report, XOM shares have slipped around 2% and now trade at $105. Broadcom (AVGO): Active Corporate Insiders: 2 YTD Performance: 51% Total Bought Back: $10,451,239 Average Purchase Price: $865 We actually discussed the insider activity at AVGO once before relative to Q3 trading in a weekly insider activity report but considering the volume and the volatility in the tech sector, it made its way into the quarterly coverage. It was two directors, Check Kian Low and Harry You, that purchased shares in Q3. Low's purchase of 11,000 shares for an average of $872 per share came on September 6th and You's purchase of 1,000 shares for an average of $859 per share came on September 15th. You might recall during that time there had been reports that Google might drop AVGO as the primary chip-maker for their product line. Ultimately, not much if anything came after these reports and if the directors saw this as a buying opportunity, they might have been a bit early considering the stock has fallen another 4 or so percent since their buying spree. Still, AVGO is up 51% YTD and like we discussed in the weekly article, the fundamentals on the stock are very strong. The company last posted an EPS miss in Q1 of 2020 and has grown the measurement in nearly every consecutive quarter since. In the first two quarters of this year EPS fell very slightly by about 1% as quarterly revenue also hit record highs and since plateaued as well. That said annual revenue will now have grown every year for a decade which shouldn't be understated. Current estimated 2023 revenue represents 2653% growth from 2013 revenue which was around $1.3 billion. The world's third largest chip-maker by market cap will announce its Q4 earnings in early December and currently trades around $880 per share. The AES (AES): Active Corporate Insiders: 3 YTD Performance: -47% Total Bought Back: $1,240,288 Average Purchase Price: $19 AES's primary business consists of the generation, distribution, and ultimately the selling of electricity or power generation. The company now operates in 15 countries and ranks among the Fortune 500 power companies. Interestingly, one of the most active insiders at AES, while not active this quarter, is Jeffrey Ubben. He bought 1 million shares of the firm between May and June of 2020, likely on behalf of his fund, ValueAct Capital. This quarter it was the turn of three directors to load up on company stock despite the relatively dismal year shares are having so far. It wouldn't be fair to say that the energy sector has had a great year, but the second half of 2023 has been much kinder to the sector than the first. Unfortunately, AES has not shared the same fortune, slipping more than 50% YTD in early October and about 43% over the last year. Directors did their buying in early to mid-August just a few days after AES released its Q2 earnings reports after which shares fell about 15% in three or so weeks. This can probably be attributed to the firm's first EPS miss since Q1 of 2022 and its first revenue miss since Q4 of 2020. That said, AES does have some attractive attributes like its cheap P/E ratio of about 8.8x and a 10-year high dividend of 4.8%. AES announced their Q3 earnings AH on November 2nd showing a slight beat in EPS of around $0.06 and a miss on revenue of around $130 million. Nonetheless, share prices spiked up about 8-9% and closed at $16.79 and have continued to trade in the $16 range since. Zebra Technologies (ZBRA): Active Corporate Insiders: 4 YTD Performance: -21% Total Bought Back: $1,763,043 Average Purchase Price: $245 Zebra operates as a computing company out of Lincolnshire, Illinois, a suburb of Chicago. They manufacture and sell a number of different hardware and software technologies to assist customers in tracking, analyzing, and managing their own products, workforces, and so on. It's estimated they serve around 80% of Fortune 500 companies. As for insider buying this quarter at the firm it was the first since Q2 of 2018 and came from the CEO, the Executive Chair, and two directors. The CEO and directors each bought 1,000 shares all in the same trading week while the Chair bought 4,100 shares the week before. A quick glance at a 10Y chart for ZBRA sheds some light on why there may not have been much insider buying here in recent years. From 2019 to its peak in late 2021 the stock gained around 300% only to have lost 65% since then which probably hasn't been a welcoming sign for investors or insiders. Despite these, the company's financials have remained relatively stable. While share prices have dropped, they have still managed to lower their D/E ratio in all but three quarters since the beginning of 2019 and revenue has also grown at a solid pace in that same period. That is until this calendar year in which the company expects around a 10 to 20 percent decline in revenue. In their most recent earnings call on Halloween, the CEO revealed Q3 sales fell 30% and non-GAAP EPS fell 79% from a year ago in what could certainly be considered a bit of a red flag. Following the report shares slipped initially by some 6 to 7 percent but have since rallied about 10% although likely assisted by the general market rally over the last several trading days. Today shares can be purchased for around $206. NextEra Energy (NEE): Active Corporate Insiders: 3 YTD Performance: -32% Total Bought Back: $950,900 Average Purchase Price: $68 NextEra Energy is a stock we've covered before in insider related articles, as insiders have been quite active there for the better part of two years. The last time we covered NEE was Q1 of this year when we tracked 7 active insiders buying shares including the CFO and EVP. It was two directors buying shares this time around in mid-August, several weeks after the company posted strong Q2 earnings. While share prices have not performed well over the last year or so, 1Y return is -23% and the YTD return is -29%, earnings have been strong and the company still offers a 3% yield. The main issue with NEE is that it's costly at a forward-looking P/E ratio of 19x and a debt load more than twice the company's equity. Their levered free cash flow for the trailing 12 months is also close to negative $20 billion. On the flip side both EPS and sales have grown at impressive rates over the last several years but especially in the last year. Revenue is up close to 40% YoY and EPS in Q3 grew 10% from a year ago. Fundamentals and financials aside, 5 plus insiders at NEE have bought close to a combined $5 million in company stock just in 2023 and considering the stock's performance that sentiment is hard to ignore. The energy conglomerate now trades around $59 a share. Final Takeaway: From previous articles this year and last, oil and gas companies have made up a large part of our discussions and that seems to finally be dwindling down. What I noticed in particular writing this quarter's update was how well insiders are at nailing investors' reactions to earnings reports. A good number of the tickers mentioned above and some others that didn't make the cut for this article had either stellar earnings reports and then great investor response or just great investor response post earnings whether they were phenomenal or not. What insiders obviously cannot control or as well predict is the greater macroeconomic environment and that's likely why you see many of the insiders in this article still a bit underwater on their purchases. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-08	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. MARKET CAP: PASS STANDARD DEVIATION: PASS TWELVE MINUS ONE MOMENTUM: NEUTRAL NET PAYOUT YIELD: NEUTRAL FINAL RANK: FAIL Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-08	NEE	Over the long run, Wall Street is a playground that allows optimists to profit handsomely. But over shorter timelines, the stock market is an unpredictable battleground that pits bulls and bears in a seemingly unrelenting tug-of-war. Since the start of 2020, the three major stock indexes have oscillated between bull and bear markets on a couple of occasions. Though this volatility can, at times, be unnerving for everyday investors, history shows that pullbacks represent an opportunity for long-term-minded investors to buy stakes in high-quality businesses at a discount. Image source: Getty Images. The added benefit for retail investors is that most online brokerages have done away with barriers to wealth-building. Minimum deposit requirements and commission fees for buy and sell transactions on major U.S. exchanges have been shelved, which means any amount of money -- even $500 -- can be the perfect amount to put to work on Wall Street. If you have $500 that's ready to invest, and you're absolutely certain this isn't cash you'll need to pay bills or cover emergencies, the following three stocks stand out as no-brainer buys right now. NextEra Energy The first surefire stock to buy if you have $500 to invest right now is none other than the largest electric utility by market cap, NextEra Energy (NYSE: NEE). NextEra is contending with two clear-cut headwinds that have lopped off more than a third of its market cap. The first is rapidly rising Treasury yields. Treasury bonds are usually viewed as a far safer source of income than equities. That makes the dividend-driven utility sector potentially less desirable for income investors as Treasury yields rise. The other concern is a recent warning from NextEra Energy Partners (NYSE: NEP) that its dividend growth would slow over the next couple of years. With NextEra Energy Partners focused on growth from its internal renewable projects, there's the worry that NextEra Energy may not benefit as much from drop-down transactions to NextEra Energy Partners. Though these headwinds shouldn't be ignored, neither problem is particularly worrisome. In fact, NextEra's management team expects to meet the high-end of earnings growth expectations of 6% to 8% annually in each of the next three years. What makes NextEra Energy such a special investment is its renewable energy focus. Of the roughly 68 gigawatts (GW) it has in operation, nearly half of NextEra's capacity comes from renewables. No utility globally is generating more capacity from wind or solar power than NextEra. While these green-energy projects have been costly, they've demonstrably lowered the company's electricity generation costs and pumped up its earnings growth to the high single digits over the past 15 years. Higher interest rates aren't slowing down NextEra's investments in renewables, either. From the start of 2023 through the end of 2026, it expects between 32.7 GW and 41.8 GW of renewable energy projects to come online. NextEra's competitive edge is only going to grow over time. Shares of NextEra Energy are currently valued at 17 times forward-year earnings, which represents its cheapest valuation since 2015. Bristol Myers Squibb A second no-brainer stock that's begging to be bought with $500 right now is pharmaceutical company Bristol Myers Squibb (NYSE: BMY). Shares of Bristol Myers are down 35% from their peak over the past year largely due to the loss of sales exclusivity on cancer drug Revlimid, which had been one of the top-selling drugs in the world. The introduction of generics for blockbusters Revlimid and Abraxane clearly have investors concerned. But at some point, it becomes difficult to overlook the incredible value proposition Bristol Myers Squibb brings to the table. Before diving into portfolio specifics, keep in mind that healthcare stocks are exceptionally defensive. People don't have the ability to simply not become ill or stop taking their medicine just because the U.S. economy isn't firing on all cylinders. Demand for prescription drugs is virtually inelastic. For Bristol Myers Squibb, it means predictable operating cash flow in any economic climate. While losing exclusivity on Revlimid is less than ideal, Bristol Myers' portfolio is more diverse than ever. Blood thinner Eliquis and cancer immunotherapy Opdivo have slid right in as steady blockbusters in place of Revlimid and Abraxane. Meanwhile, the company's new product portfolio saw sales surge 67% on a constant-currency basis during the September-ended quarter. The needle could point even higher for this segment with Bristol Myers announcing its acquisition of Mirati Therapeutics (NASDAQ: MRTX) for up to $5.8 billion last month. Mirati's crown jewel is Krazati, a selective KRAS inhibitor for patients with advanced non-small cell lung cancer who've undergone at least one previous treatment. Label expansion opportunities and pricing power could pump Krazati's peak annual sales to well north of $1 billion. The valuation is undeniably attractive, too. Even accounting for Revlimid's loss of exclusivity, Bristol Myers' stock can be purchased for less than 7 times forward-year earnings and a little over 2 times full-year sales in 2024. That's a bargain for pharmaceutical giant with a drug portfolio as vast as Bristol Myers Squibb. Image source: Getty Images. Altria Group The third no-brainer stock to buy with $500 right now is tobacco behemoth Altria Group (NYSE: MO). Altria is the company behind the popular premium cigarette brand Marlboro in the United States. Tobacco stocks have come under sizable pressure as the public has become increasingly aware of the dangers of long-term tobacco use. Between 1965 and 2021, adult smoking rates in the U.S. have declined from around 42% to just 11.5%. This persistent volume decline is why investors have been hesitant to place a double-digit price-to-earnings multiple on shares of Altria. While adult tobacco-smoking rates are unlikely to reverse course anytime soon, Altria does have a couple of catalysts at its disposal to move the needle in shareholders' favor. At the top of the list for Altria Group is its exceptional pricing power. Tobacco contains nicotine, which is an addictive chemical. Since quitting tobacco products can be difficult, Altria is usually able to offset cigarette shipment declines with higher price points -- especially for its U.S.-leading premium brand, Marlboro. However, the company isn't just relying on price hikes to drive its sales and profit growth. In June, it completed a $2.75 billion acquisition of electronic-vapor device and products company NJOY Holdings. A half-dozen of NJOY's products have received marketing granted orders (MGOs) from the U.S. Food and Drug Administration. In other words, there's no concern about these products being pulled from store shelves, while non-MGO e-vapor products could be removed. Altria also took an equity stake in Canadian licensed cannabis producer Cronos Group in 2019. Though this stake hasn't exactly panned out well from an investment standpoint, Altria stands to benefit if the U.S. federal government reschedules marijuana. Altria would almost certainly assist Cronos with product development and marketing throughout North America, should a change in scheduling occur. Lastly, Altria Group is historically cheap. On top of shares trading at just 8 times forward-year earnings, Altria's dividend yield is nearing 10%. Tobacco stocks may not be the growth story they were decades ago, but Altria can still get the job done for patient investors. 10 stocks we like better than NextEra Energy When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Sean Williams has positions in NextEra Energy. The Motley Fool has positions in and recommends Bristol Myers Squibb, Mirati Therapeutics, and NextEra Energy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	Adds details on the deal from paragraph 2 onwards Nov 6 (Reuters) - Kinder Morgan KMI.N said on Monday it would acquire NextEra Energy Partners' NEP.N South Texas assets, STX Midstream, for $1.82 billion. The Texas natural gas pipeline portfolio primarily consists of seven pipelines which provide natural gas to Mexico and power producers and municipalities in South Texas. "Initially, we plan to fund the transaction with cash on hand and short-term borrowings," Kinder Morgan said in a statement. The deal is expected to close in the first quarter of 2024. (Reporting by Seher Dareen in Bengaluru; Editing by Shilpi Majumdar) ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832 70128, if within U.S. call +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	Investors interested in stocks from the Utility - Electric Power sector have probably already heard of E.ON SE (EONGY) and NextEra Energy (NEE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Currently, E.ON SE has a Zacks Rank of #2 (Buy), while NextEra Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EONGY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. EONGY currently has a forward P/E ratio of 9.67, while NEE has a forward P/E of 19.04. We also note that EONGY has a PEG ratio of 0.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NEE currently has a PEG ratio of 2.33. Another notable valuation metric for EONGY is its P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NEE has a P/B of 2.14. These metrics, and several others, help EONGY earn a Value grade of A, while NEE has been given a Value grade of D. EONGY has seen stronger estimate revision activity and sports more attractive valuation metrics than NEE, so it seems like value investors will conclude that EONGY is the superior option right now. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report E.ON SE (EONGY) : Free Stock Analysis Report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	Eversource Energy ES reported third-quarter 2023 adjusted earnings of 97 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 2%. The bottom line declined 4% year over year. Total Revenues ES’ third-quarter revenues of $2,791.5 million missed the Zacks Consensus Estimate of $3,334 million by 16.3%. Total revenues also declined 13.2% from the year-ago quarter’s figure of $3,215.6 million. Eversource Energy Price, Consensus and EPS Surprise Eversource Energy price-consensus-eps-surprise-chart \| Eversource Energy Quote Highlights of the Release Total operating expenses decreased 14.9% year over year to $2,260.9 million. Operating income decreased 4.8% from the prior-year quarter’s level to $530.6 million. Interest expenses increased 24.7% to $222.3 million. Net income in the quarter under review was $341.5 million, down 2.8% from $351.3 million recorded in the year-ago period. Segmental Performance Electric Transmission: Earnings from this segment totaled $160.3 million, up 2.9% from the prior-year quarter’s level. The increase was primarily due to a higher level of investment in Eversource’s electric transmission system. Electric Distribution: Earnings from this segment amounted to $173.3 million, down 23% year over year. This was due to the timing impact of a rate design change for Eversource’s Massachusetts electric business that has the effect of shifting certain peak demand revenues from summer to winter. Natural Gas Distribution: This segment reported a loss of $33.7 million, wider than the prior-year quarter’s registered loss of $24.6 million. This was due to higher depreciation and operations and maintenance expenses. Water Distribution: Earnings from this segment amounted to $16.6 million, down 0.6% from the year-ago quarter’s figure. Eversource Parent & Other Companies: The segment reported earnings of $23.2 million in third-quarter 2023, marking an improvement from the year-ago quarter's reported loss of $21.4 million. This primarily reflects a lower effective tax rate, partially offset by higher interest expense. Guidance Eversource narrowed its 2023 earnings expectation to the band of $4.30-$4.43 per share from the previously guided range of $4.25-$4.43. The mid-point of the revised guidance is $4.37, a bit higher than the Zacks Consensus Estimate of $4.36. The company reaffirmed its expectations for long-term EPS growth rate from the existing core regulated businesses in the upper half of 5-7% through 2027, using the $4.09 earned in 2022 as a base. Zacks Rank Eversource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Recent Releases NRG Energy, Inc. NRG reported third-quarter 2023 earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.53 by 5.9%. NRG’s long-term (three to five years) earnings growth rate is 10.26%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.03 per share, indicating a year-over-year increase of 92%. NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. NEE’s long-term earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.12 per share, indicating a year-over-year increase of 7.6%. Dominion Energy Inc. D delivered third-quarter 2023 operating earnings of 77 cents per share, which lagged the Zacks Consensus Estimate of 78 cents by a penny. D’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.02 per share. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Dominion Energy Inc. (D) : Free Stock Analysis Report Eversource Energy (ES) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	A look at the weighted underlying holdings of the iShares Global Utilities ETF (JXI) shows an impressive 17.9% of holdings on a weighted basis have experienced insider buying within the past six months. NextEra Energy Inc (Symbol: NEE), which makes up 12.04% of the iShares Global Utilities ETF (JXI), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $14,875,429 worth of NEE, making it the #1 largest holding. The table below details the recent insider buying activity observed at NEE: NEE — last trade: $59.38 — Recent Insider Buys: PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE 06/14/2023 John W. Ketchum Chairman, President & CEO 13,600 $74.26 $1,009,987 08/15/2023 James Lawrence Camaren Director 4,000 $67.85 $271,400 08/17/2023 Kirk S. Hachigian Director 10,000 $67.95 $679,500 10 ETFs With Stocks That Insiders Are Buying » Also see: RTPY YTD Return Funds Holding XLFS WIRE Dividend History The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	OGE Energy Corp. OGE reported third-quarter 2023 earnings of $1.20 per share, which beat the Zacks Consensus Estimate of 92 cents by 30.4%. However, the figure declined 8.4% from $1.31 per share recorded in the year-ago period. Revenues OGE’s operating revenues of $945.4 million declined 25.6% from $1,270.8 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $1,283 million by 26.3%. OGE Energy Corporation Price, Consensus and EPS Surprise OGE Energy Corporation price-consensus-eps-surprise-chart \| OGE Energy Corporation Quote Operational Highlights Total sales in the reported quarter were 9.3 million megawatt-hours (MWh), down from 9.4 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 893,894. The cost of fuel, purchased power and direct transmission declined 50.5% to $333.8 million from $673.8 million a year ago. Total operating expenses increased 4.5% to $280.5 million, primarily driven by higher depreciation and amortization expenses and other operation and maintenance expenses. Operating income totaled $331.1 million, up 0.8% from the year-ago quarter’s level of $328.6 million. Interest expenses totaled $51.1 million, up 28.4% from $39.8 million recorded a year ago. Financial Highlights OGE Energy reported a net income of $241.9 million in the third quarter of 2023, down from the prior-year quarter’s figure of $262.8 million. The OG&E segment’s net income amounted to $246.1 million, down 2.8% from the year-ago period’s $253.1 million. The deterioration was primarily due to milder weather compared to the third quarter of 2022 and higher depreciation and interest expenses on a growing asset base. 2023 Guidance OGE Energy updated its 2023 earnings per share (EPS) guidance. The company now expects earnings in the range of $2.02-$2.07 per share, up from the previous guidance in the band of $1.93-$2.07. The Zacks Consensus Estimate is pegged at $2.02, which lies at the low end of the company’s guided range. For its OG&E segment, OGE now expects earnings in the band of $2.09-$2.13 per share, up from the previous range of $1.99-$2.09 per share. Zacks Rank OGE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Recent Utility Releases DTE Energy Company DTE reported third-quarter 2023 operating earnings per share (EPS) of $1.44 per share, which missed the Zacks Consensus Estimate of $1.72 by 16.3%. The bottom line also declined 10% from the year-ago quarter’s reported figure of $1.60 per share. The operating net income in the quarter was $298 million compared with $311 million in the year-ago period. PG&E Corporation’s PCG adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure. In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%. NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources. For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line improved 6.7% year over year. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report DTE Energy Company (DTE) : Free Stock Analysis Report OGE Energy Corporation (OGE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-06	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 46% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS SALES GROWTH RATE: FAIL CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: FAIL EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: FAIL TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Martin Zweig Martin Zweig Portfolio About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports. Additional Research Links Top Large-Cap Growth Stocks Factor-Based Stock Portfolios Dividend Aristocrats 2023 High Insider Ownership Stocks Top S&P 500 Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-05	NEE	InvestorPlace - Stock Market News, Stock Advice & Trading Tips With the market seemingly unable to decide which trajectory it wants to take, so-called safe energy stocks may be your best bet. Irrespective of whatever happens to the economy, mobility and power represent enduring themes in modern society. Thus, the energy sector makes plenty of sense. Should the economy manage to power forward through the troubles, both people and businesses will consume resources. By logical deduction, this kinesis should be beneficial to stable energy stocks. However, even under recessionary circumstances, various entities will transact goods and services. Again, just by following the logic, this backdrop should benefit energy-related enterprises. Of course, nothing in the capital market is literally safe, as in completely risk-free. But that shouldn’t be used as a “whataboutism” to defeat the theme here. Let’s face it, in America, you’re taking a risk just by walking out your front door. On that note, below are safe energy stocks to buy. Exxon Mobil (XOM) Source: Jonathan Weiss / Shutterstock.com When discussing safe energy stocks, integrated oil and gas giant Exxon Mobil (NYSE:XOM) comes to mind. No, I wouldn’t call the enterprise absolutely risk-free; again, no such thing exists in the market. However, faced with significant geopolitical turmoil – specifically oil production cuts by certain resource-rich nations that will extend to the end of the year – paints an urgent narrative. Basically, we must focus on energy resilience. Therefore, I’m not that worried about the push for renewable energy competing with hydrocarbons. Factoring in elements such as population growth, diversification rather than a wholesale pivot may be the key theme moving forward. Also, XOM makes a great case for stable energy stocks thanks to its financials. Aside from an understandable miss in 2020, Exxon has been consistently profitable. For investors, the immediate benefit is passive income. Presently, the company offers a forward yield of 3.84%. As well, it features 41 years of consecutive dividend increases along with a very reasonable payout ratio of 39.69%. Analysts rate XOM a moderate buy with a $128.75 price target, implying 18% upside potential. Kinder Morgan (KMI) Source: JHVEPhoto / Shutterstock.com On a surface level, Kinder Morgan (NYSE:KMI) doesn’t immediately strike onlookers as one of the safe energy stocks. Since the start of the year, KMI slipped more than 6%. In the trailing five years, it’s gone nowhere, losing almost 4% of equity value. However, as an infrastructure play, Kinder Morgan’s giant midstream business – which commands approximately 83,000 miles of pipelines – is too big to ignore. To be fair, the slowdown in the consumer economy along with the ongoing work-from-home directive has negatively impacted KMI’s growth. In 2022, the company posted revenue of $19.2 billion. On a trailing-12-month (TTM) basis – inclusive of the third quarter – sales sit at $15.88 billion. Granted, those are not exciting statistics. Nevertheless, the one to focus on is consistent profitability. Further, social shifts may reinvigorate sentiment. For example, more companies will likely mandate return-to-office policies, especially as the productivity crunch accelerates. That might help KMI become one of the stable energy stocks. So far, analysts peg shares as a moderate buy with a $20.78 target, projecting 23% growth. NextEra Energy (NEE) Source: madamF / Shutterstock.com While an exclusive integration of clean and renewable energy sources might not be in the cards for the near future, investors may want to consider NextEra Energy (NYSE:NEE). For full disclosure, one must stake creative liberties to label NEE as a candidate for safe energy stocks. Since the January opener, NEE has plunged almost 29%, which is startling. As our own Louis Navellier pointed out, tighter monetary policy has hurt NEE. Subsequently, the market expert views shares dubiously. At the same time, speculators might look at the trade as a substantially de-risked opportunity. Basically, the bad news may have been baked into the stock. Notably, in the trailing one-month period, shares swung up almost 14%. In terms of the financials, NEE now trades at 15.84x trailing earnings. At the end of last year, NEE’s multiple clocked in at 39.81X. In that sense, the valuation is getting progressively more attractive. Also, the broader relevance of renewables might make NEE one of the safe energy stocks to gamble on. Finally, analysts rate NEE a strong buy with a $72.64 target, implying over 21% upside. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Energy Giants to Invest in for Safe and Stable Investments appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-04	NEE	Below is Validea's guru fundamental report for NEXTERA ENERGY INC (NEE). Of the 22 guru strategies we follow, NEE rates highest using our Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt. NEXTERA ENERGY INC (NEE) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 46% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS SALES GROWTH RATE: FAIL CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: FAIL EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: FAIL TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of NEXTERA ENERGY INC NEE Guru Analysis NEE Fundamental Analysis More Information on Martin Zweig Martin Zweig Portfolio About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports. Additional Research Links Top NASDAQ 100 Stocks Factor-Based ETF Portfolios Harry Browne Permanent Portfolio Ray Dalio All Weather Portfolio High Shareholder Yield Stocks About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-03	NEE	Dominion Energy Inc. D delivered third-quarter 2023 operating earnings of 77 cents per share, which lagged the Zacks Consensus Estimate of 78 cents by a penny. Quarterly earnings were within the company’s guidance of 72-87 cents per share. Operating earnings were $1.11 in the year-ago quarter. The GAAP earnings for the third quarter were 17 cents per share compared with 91 cents in the year-ago quarter. The difference between GAAP and operating earnings for the period includes a net gain from discontinued operations associated with the sale of remaining noncontrolling interest in Cove Point and gas distribution operations, deferred taxes related to the sale of gas distribution operations, the gains and losses on nuclear decommissioning trust funds, the mark-to-market impact of economic hedging activities and other adjustments. Revenues Dominion Energy’s total revenues were $3,810 million, which lagged the Zacks Consensus Estimate of $4,275 million by 10.9%. Revenues decreased 3.9% from $3,963 million in the year-ago quarter. Dominion Energy Inc. Price, Consensus and EPS Surprise Dominion Energy Inc. price-consensus-eps-surprise-chart \| Dominion Energy Inc. Quote Highlights of the Release Total operating expenses decreased 6.5% year over year to $2,775 million due to lower electric fuel and other energy-related purchases. Interest and related charges for the reported quarter were $192 million compared with $360 million in the year-ago period. Dominion Energy’s fully regulated offshore wind project is on time and budget and is expected to save customers more than $3 billion in fuel costs over the first 10 years of operation. Segmental Details Dominion Energy Virginia: Net income from the segment was $532 million, down 13.9% year over year. Dominion Energy South Carolina: Net income from the segment was $143 million, down 18.3% year over year. Contracted Energy: Net income from the segment was $54 million, down 16.9% year over year. Corporate and Other: The net loss was $62 million compared with a loss of $11 million in the year-ago quarter. Financial Highlights Cash & Cash equivalents as of Sep 30, 2023, were $137 million compared with $120 million as of Dec 31, 2022. The total long-term debt as of Sep 30, 2023, was $33,057 million, down from $34,584 million as of Dec 31, 2022. In the first nine months of 2023, cash from operating activities was $5,186 million compared with $2,671 million in the year-ago period. Guidance Dominion provided fourth-quarter 2023 operating earnings guidance of 35 cents per share, taking into consideration normal weather in its service territories. The guided range is lower than the Zacks Consensus Estimate of 62 cents for the same period. Zacks Rank Currently, Dominion has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other Releases NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The Zacks Consensus Estimate for NEE’s 2023 earnings is pinned at $3.12 per share, implying a year-over-year improvement of 7.6%. Long-term (three- to five-year) earnings growth of NEE is pegged at 8.18%. CMS Energy Corp. CMS reported third-quarter 2023 adjusted earnings of 61 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 3.2%. The Zacks Consensus Estimate for CMS’ 2023 earnings is pinned at $3.10 per share, implying a year-over-year improvement of 7.3%. The long-term earnings growth of CMS is pegged at 7.5%. FirstEnergy Corporation (FE) reported third-quarter 2023 operating earnings per share of 88 cents, which surpassed the Zacks Consensus Estimate of 85 cents by 3.5%. The Zacks Consensus Estimate for FE’s 2023 earnings is pinned at $2.54 per share, implying a year-over-year improvement of 5.4%. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report CMS Energy Corporation (CMS) : Free Stock Analysis Report Dominion Energy Inc. (D) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-03	NEE	What's the hot defensive play right now? Exactly what you'd think: utilities stocks, which are tried-and-true dividend payers, are trending higher. The Utilities Select Sector SPDR Fund (NYSEARCA: XLU) is up 4.72% in the past week. The sector is up 2.44% in the past month, outpacing the broader SPDR S&P 500 ETF Trust (NYSEARCA: SPY). Utility stocks have earned a reputation as dependable dividend payers, attracting income-focused investors. This reliability is rooted in several key factors. You don't ordinarily think of regulated industries as being good for shareholders, but that's the case with utilities. These companies run a gauntlet of oversight, establishing rules and pricing mechanisms, reducing the risk of revenue fluctuations. That also supports regular dividend payments. For example, the NextEra Energy Inc. (NYSE: NEE) dividend yield is 3.12%, and the company has a 29-year track record of increasing its shareholder payout. The company's three-year earnings growth rate is 12%. NextEra has earned a spot on the list of dividend aristocrats. Why utilities are dependable in economic downturns Utilities also fall into the category of companies that will continue to collect revenue regardless of the economy. Do you stop using electricity or water in a recession? Maybe you're more vigilant about turning off lights in empty rooms, but don't call your local utility and cancel your account. In other words, utilities enjoy consistent demand regardless of economic conditions. Long-term contracts and agreements with customers also contribute to revenue predictability. For example, the Southern Company (NYSE: SO) has a three-year revenue growth rate of 15%. The Southern dividend yield is 3.99%, and the company increased its dividend in each of the past 23 years. Another heavily weighted S&P component, Duke Energy Corp. (NYSE: DUK), has a spot on MarketBeat’s Dividend Achievers stock list, having increased its shareholder payout for 19 years. A utility with a higher yield If you're looking for a utility stock with a higher yield, consider Eversource Energy (NYSE: ES), which supplies electric power to customers in New Hampshire, Massachusetts and Connecticut. The S&P 500 component's yield is 4.97%. Eversource Energy's dividend data show a 25-year history of boosting the shareholder payout. The stock is down 21.27% in the past three months, with much of that decline due to higher operational and maintenance costs. As a whole, the XLU ETF has a dividend yield of 3.4%, indicating that the sector as a whole has high payouts. The utilities sector has historically paid the highest dividends of all the S&P sectors. One of only two sectors with a gain in 2022 That's a key reason utility stocks were one of only two sectors to show a gain in 2022. The extraordinary gain of the Technology Select Sector SPDR Fund (NYSEARCA: XLK) is well known, but the XLU’s return of 1.42% isn't common knowledge. That was a small return, but in a broad-market downturn, like the market saw in 2022, investors could rely on the dividend stability of utilities. Nobody ever accused utilities stocks of being exciting, but that's exactly their appeal. Although the market has gone into rally mode in recent days, hoping that the Federal Reserve is done or nearly done raising rates, there's still plenty of uncertainty, as the housing market is rearing its head as a potential problem. Utilities stocks are well-suited for conservative investors seeking stability and consistent income. In other words, retirees might want to consider holding utilities as part of a diversified portfolio. Optional dividend capture strategy In addition, if you're more interested in an approach that combines elements of trading and longer-term investing, utilities could be implemented into a dividend capture strategy. If the market does indeed go into a downturn and growth stocks falter, utilities may prove their worth, as frequently happens in poor market conditions. Part of utilities' traditional role as defensive stocks includes acting as a hedge against more volatile sectors during economic downturns. Even investors who aren't comfortable holding more volatile growth names in a market downturn frequently find the income generated by the utility sector helps mitigate losses elsewhere. The article "Dependable dividends: Why utility stocks are on fire" originally appeared on MarketBeat. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2023-11-03	NEE	IDACORP, Inc. IDA reported third-quarter 2023 earnings of $2.07 per share, which surpassed the Zacks Consensus Estimate of $1.70 by 21.8%. The company reported earnings of $2.10 in the year-ago quarter. Strong customer growth, productive regulatory outcomes and IDA’s focus on operating efficiently continue to support its performance. Total Revenues IDACORP's total revenues came in at $509.6 million, which lagged the Zacks Consensus Estimate of $552 million by 7.7%. The top line also decreased by 1.6% from the year-ago quarter’s figure of $518 million. IDACORP, Inc. Price, Consensus and EPS Surprise IDACORP, Inc. price-consensus-eps-surprise-chart \| IDACORP, Inc. Quote Highlights of the Release Customer growth in the company’s service areas increased by 2.3% year over year for the 12 months ended Sep 30, 2023, which in turn boosted operating income for the third quarter. Customer growth boosted operating income by $4.6 million from the year-ago level. Total other O&M expenses in the third quarter of 2023 were $4.9 million, lower than the third quarter of 2022, primarily due to lower maintenance expenses at hydropower facilities and jointly-owned coal plants as a result of fewer planned maintenance projects, as well as the timing of regulatory deferrals. Operating income was $125.7 million, down 1.6% year over year. Financial Highlights As of Sep 30, 2023, IDACORP had cash and cash equivalents of $445.5 million compared with $177.6 million as of Dec 31, 2022. As of Sep 30, 2023, the company had long-term debt of $2,826.2 million compared with $2,194.1 million as of Dec 31, 2022. Cash flow from operations amounted to $162.1 million in the first nine months of 2023 compared with $268.9 million recorded in the year-ago period. Guidance IDACORP raised the lower end of its 2023 earnings guidance in the range of $5.05-$5.15 from an earlier range of $4.95-$5.15 per share. The Zacks Consensus Estimate for 2023 earnings is currently pegged at $4.97 per share, lower than the midpoint of the guidance range of $5.10. Idaho Power’s raised its capital expenditure guidance for 2023 is in the range of $675-$725 million from an earlier range of $650-$700 million. Idaho Power expects to add 6.4-6.8 MW of hydropower in 2023. Zacks Rank Currently, IDACORP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other Releases NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The Zacks Consensus Estimate for NEE’s 2023 earnings is pinned at $3.12 per share, implying a year-over-year improvement of 7.6%. Long-term (three- to five-year) earnings growth of NEE is pegged at 8.18%. CMS Energy Corp. CMS reported third-quarter 2023 adjusted earnings of 61 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 3.2%. The Zacks Consensus Estimate for CMS’ 2023 earnings is pinned at $3.10 per share, implying a year-over-year improvement of 7.3%. The long-term earnings growth of CMS is pegged at 7.5%. FirstEnergy Corporation FE reported third-quarter 2023 operating earnings per share of 88 cents, which surpassed the Zacks Consensus Estimate of 85 cents by 3.5%. The Zacks Consensus Estimate for FE’s 2023 earnings is pinned at $2.54 per share, implying a year-over-year improvement of 5.4%. 4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." Zacks Investment Research has just released an urgent special report to help you bank on this trend. In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. Download your free report now to see them. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report FirstEnergy Corporation (FE) : Free Stock Analysis Report CMS Energy Corporation (CMS) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Subsets and Splits

No community queries yet

The top public SQL queries from the community will appear here once available.