Nextera Stock Story

NEE -  USA Stock  

USD 70.46  0.76  1.07%

Nextera Energy Earnings before Tax are projected to increase significantly based on the last few years of reporting. The past year's Earnings before Tax were at 3.41 Billion. The current year Enterprise Value is expected to grow to about 245 B, whereas Average Assets are forecasted to decline to about 124.4 B. The essential objective of this story is to break down our current position on Nextera for shareholders considering to short it. We will discuss why Nextera Energy shareholders may still consider a stake in the business.
Published over three months ago
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Is Nextera Energy (NYSE:NEE) outlook positive for February 2022?
The company secures a Beta (Market Risk) of 0.6345, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Nextera's beta means in this case. As returns on the market increase, Nextera Energy returns are expected to increase less than the market. However, during the bear market, the loss on holding Nextera Energy will be expected to be smaller as well. Even though it is essential to pay attention to Nextera Energy price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Nextera Energy exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Nextera Energy has an expected return of -0.0524%. Please be advised to verify Nextera Energy expected short fall, and the relationship between the potential upside and accumulation distribution to decide if Nextera Energy performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Nextera Energy. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Nextera Energy

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Nextera Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Nextera Energy in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Nextera Energy. Your research has to be compared to or analyzed against Nextera Energy's peers to derive any actionable benefits. When done correctly, Nextera Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Nextera Energy.

How important is Nextera Energy's Liquidity

Nextera Energy financial leverage refers to using borrowed capital as a funding source to finance Nextera Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nextera Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nextera Energy's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Nextera Energy, but it might be worth checking our own buy vs. sell analysis

What is driving Nextera Energy Investor Appetite?

The small dip in market price for the last few months may encourage shareholders to take a closer look at the firm as it is trading at a share price of 81.92 on 14,689,755 in trading volume. The company directors and management did not add much value to Nextera Energy investors in December. However, diversifying your holdings with Nextera Energy or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.26. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Returns Breakdown

Return on Investment8.04
Return on Assets0.0365
Return on Equity0.12
Return Capital0.0491
Return on Sales0.35

Nextera Energy has 89 percent chance to stay above $84 in 2 months

Latest variance is at 1.63. Nextera Energy has relatively low volatility with skewness of -0.65 and kurtosis of 1.34. However, we advise all investors to independently investigate Nextera Energy to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nextera Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nextera Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Nextera Energy Implied Volatility

Nextera Energy's implied volatility exposes the market's sentiment of Nextera Energy stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nextera Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nextera Energy stock will not fluctuate a lot when Nextera Energy's options are near their expiration.

Our Conclusion on Nextera Energy

Although many other companies in the utilities—regulated electric industry are either recovering or due for a correction, Nextera Energy may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 24th of January 2022, our analysis shows that Nextera Energy follows the market closely. The firm is undervalued and projects below average probability of distress for the next 2 years. Our ongoing 90 days buy vs. sell advice on the firm is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Nextera Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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