NextEra Energy Partners: Stock Movement and Future Outlook

The recent report highlights NextEra Energy Partners' stock drop, but upcoming earnings may pique investor interest, with EPS projected at $0.51, a drop compared to last year. With an upward shift in EPS estimates and a Zacks Rank of #2 (Buy), the company's stock could show potential despite current challenges.

Date: 03-10-2024

AI Rating: 5

NextEra Energy Partners (NEP) closed at $26.66, reflecting a drop of -1.11% compared to the previous day, comparatively underperforming against the S&P 500's slight gain. However, the stock experienced a notable increase of 9.06% over the past month, considerably outperforming both the Oils-Energy sector and the broader S&P 500 index.

Investors may focus on the upcoming earnings release, as the company's EPS for this quarter is projected at $0.51. This indicates a concerning decline of 10.53% from the same quarter last year. The decline in EPS, a critical indicator for many investors, may trigger negative sentiment, especially when viewed against the backdrop of declining revenue expectations.

The consensus estimates indicate revenue of $325.11 million, marking an 11.42% year-over-year decline. These figures suggest that the company is facing significant challenges, which could lead to adjustments in valuation and investor sentiment. However, for the fiscal year, the Zacks Consensus Estimates project earnings growth of +547.06% to $2.20 per share and a slight revenue increase of +2.52% to $1.28 billion, which may offer some optimism to investors for the longer term.

Investor sentiment may also be bolstered by recent adjustments to analyst estimates, as the Zacks Rank indicates a positive outlook for the company. The Zacks Rank currently sits at #2 (Buy), reflecting an upward shift of 26.13% in the Consensus EPS estimate over the past month. The stock's Forward P/E ratio of 12.26 shows it is undervalued relative to its industry average of 19.24.

Given that the Alternative Energy - Other industry falls within the Oil-Energy sector, which has a Zacks Industry Rank of 212, NextEra Energy Partners' relatively strong EPS growth forecast and favorable Zacks Rank could indicate a potentially positive trajectory in the near future.

Stocks: NEP