Comparing NextEra Energy's stock performance to other utility stocks: An Analysis

NextEra Energy (NEE): Q2 Fiscal 2025 Results and Beyond

NextEra Energy (NEE), a leading energy company based in Juno Beach, Florida, serves approximately 12 million people through nearly 6 million customer accounts. The company operates a vast network of transmission and distribution lines spanning roughly 91,000 circuit miles, supported by 921 substations, and boasts an impressive net generating capacity of approximately 35,052 megawatts.

In the second quarter of fiscal 2025, NEE reported a revenue of $6.7 billion, marking a 10.4% year-over-year (YoY) increase. However, the revenue fell short of Street expectations of $7.3 billion. Despite this, the company's adjusted earnings per share (EPS) grew 9.4% annually to $1.05, surpassing Wall Street estimates of $0.98.

Following the release of these results on July 23, NEE stock experienced a 6.1% drop. However, the stock has since shown resilience, gaining nearly 4.4% over the past three months.

The technical picture for NEE shows mixed momentum. While the longer-term sentiment looks more constructive, near-term weakness is keeping traders on edge. Notably, the stock has been trading above its 200-day moving average since July, but slipped below its 50-day moving average in late August.

Analysts remain confident in NEE's long-term trajectory, with a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target for NEE is $82.17, a premium of 14% to current levels.

It's important to note that while specific analysts giving a "Moderate Buy" consensus rating for NEE are not explicitly named, a similar consensus was observed for a different company, with the majority of analysts maintaining a "Moderate Buy" rating and an average price target.

As of the current report, shares of NEE are trading roughly 16.3% below the October 2024 high of $86.10. Despite this, NEE has held onto a marginal year-to-date (YTD) gain.

Rival American Electric Power Company, Inc. (AEP) has delivered stronger returns, posting 12.7% returns over the past 52 weeks and 20.4% YTD.

Sristi Jayaswal did not have positions in any of the securities mentioned in this article at the time of publication.

NEE generates, transmits, distributes, and sells electric power. With a market cap of approximately $148.4 billion, the company is classified as a "large-cap" stock.

In summary, while NEE's Q2 fiscal 2025 results led to a temporary dip in its stock price, the company's strong fundamentals and analyst confidence suggest a positive outlook for its long-term growth.