NextEra Energy (NEE) stock, the biggest component of the S&P 500 Utilities Index, has an estimated upside of 2% based on analysts’ mean target price of $172 and its current price of $168.41.
Of the 16 analysts covering NEE, five have rated the stock a “strong buy,” and eight have rated it a “buy.” Three analysts are recommending a “hold.” None of the analysts have a “sell” recommendation for NextEra Energy stock as of July 12.
Why NextEra Energy?
Based on the territorial monopoly in Florida, the fourth most populated state, unmatchable renewables portfolio, and the healthy mix of competitive and regulated operations, NextEra Energy is one of the fastest-growing utilities in the country. Its earnings increased more than 8% compounded annually in the last decade, while its peers’ average earnings growth was 5%. Its better-than-expected quarterly earnings influenced its market performance in the last few years. NEE has risen 8% year-to-date, significantly outperforming utilities at large (XLU).
Peer price targets
Duke Energy (DUK) stock offers a potential upside of 4% in the next 12 months based on analysts’ mean target price of $83.27 and its current price of $80.38.
Southern Company (SO), the second-largest regulated utility in the country, has a mean target price of $46.62. Compared with its current market price of $47.77, this target implies a 2% downside in the next year.
Analysts’ mean target price of $72.50 for Dominion Energy (D) stock implies a 4% upside in the next 12 months based on its current price of $69.56.