NextEra Energy Could Be an Attractive Investment Proposition
According to Wall Street analysts’ estimates, NextEra Energy has a price target of $140.36—compared to its current market price of $133.02.
On April 21, 2017, NextEra Energy’s (NEE) implied volatility was 13.3%—marginally below its 15-day average of 15%.
NextEra Energy (NEE) stock continued to rise. So far this year, NextEra Energy stock managed to gain nearly 13%—one of the highest among XLU.
At $63.3 billion, NextEra Energy (NEE) is the largest utility in the US by market capitalization. It had an incredible run on bourses in the past year.
NextEra Energy (NEE) continued its strong performance in 1Q17. Its EPS grew 10% year-over-year. It reported earnings of $1.75 per share in 1Q17.
On April 20, 2017, among the 21 analysts tracking FirstEnergy, 12 recommended it as a “hold,” five recommended it as a “buy,” and two recommended it as a “strong buy.”
FirstEnergy (FE) is trading at an EV-to-EBITDA ratio of 7.8x, while the industry average is near 10x.
On April 20, 2017, FirstEnergy stock was trading 1% and 4% below its 50-day moving average and 200-day moving average, respectively.
On April 20, 2017, FirstEnergy’s (FE) implied volatility was 20.6%, higher than its 15-day average implied volatility.
The EIA expects electricity prices to rise 2.6% in 2017 compared to 2016.
FirstEnergy (FE) is estimated to report earnings of $0.74 per share for the quarter ended March 31, 2017. For 1Q16, FirstEnergy reported earnings of $0.80 per share.
Hybrid utility FirstEnergy (FE) is expected to report its 1Q17 financial results on April 27, 2017. FE is forecast to report total revenues of ~$3.8 billion, slightly down from its 1Q16 revenues of ~$3.9 billion.
Wall Street analysts’ consensus price target for PPL (PPL) is $37.33. Its current market price is $37.71, so the target implies a fall of more than 1% over the next year.
PPL Corporation (PPL) stock continues to look strong. It’s currently trading 4% and 8% above its 50-day and 200-day moving averages, respectively.
On April 14, 2017, PPL Corporation’s (PPL) implied volatility was 14%, marginally lower than its 15-day average implied volatility.
According to the EIA (U.S. Energy Information Administration), retail electricity prices were $0.10 per kilowatt-hour in 1Q17, 1.7% higher compared to 1Q16.
Analysts estimate that PPL Corporation (PPL) will report earnings per share (or EPS) of $0.64 in 1Q17.
PPL (PPL) stock has outperformed peers by a fair margin so far this year.
Analysts estimate that PPL will report total revenues of $2.05 billion in 1Q17. In the corresponding quarter last year, it reported revenues of $2.01 billion.
Xcel Energy (XEL) has outperformed peers in terms of total returns in the last three years. In the last three years, Xcel Energy stock rose more than 50%.