Following a year that was generally good for utilities stocks, it is surprising that NextEra Energy Inc. (NYSE: NEE) is "only” up about 24% over the last 12 months. In fact, a significant amount of that growth has come in 2026. NEE stock is up 9.2% in the first month of the year, with about 3.7% of that growth coming after NextEra reported earnings on Jan. 27.
However, with NEE stock now trading at a 52-week high and trading at 27x earnings, a premium to itself and to the sector average, investors seem to be willing to ride a hot hand, rather than discounting real risk. For now, investors like the powerful growth story laid out by NextEra management.
Setting Up a Long-Duration Runway for Growth
In the company’s fourth quarter 2025 earnings report, NextEra described 2025 as another “execution year” in which earnings per share (EPS) increased over 8% to $3.71. Notably, that figure was above the upper end of the company’s guidance. This was driven by business growth in both of the company’s business units: Florida Power & Light and Energy Resources.
However, as with most earnings reports, investors were paying close attention to the future, not the past.
To that end, management reported that Florida Power & Light secured a four-year rate agreement with an allowed return on equity (ROE) midpoint of 10.95%. For investors, that means that NextEra’s plans to spend $90 to $100 billion on capital expenditures through 2032 are well supported.
For 2026, management reiterated its guidance for adjusted EPS between $3.92 and $4.02, explicitly targeting the high end of that range.
From that base, NextEra aims for at least 8% compound annual adjusted EPS growth through 2032 with operating cash flow growing at or above EPS.
NextEra Is Playing a Key Role in the Energy Transition
Future growth is also the story behind NextEra's Energy Resources business, which reported adjusted earnings growth in 2025 of approximately 13%. The company also had another record year of renewables and storage origination, including a 13.5 GW backlog and a total development queue of approximately 30 GW.
The company noted that it is seeing solid demand from data centers and hyperscalers as a new “large-load” driver. That undoubtedly comes as a relief to investors who may have been concerned about lighter demand. It’s also a reason why many investors may be willing to pay a premium for NEE stock.
NEE Stock Is Stretched, Not Stressed
The NEE stock chart is consistent with a “riding the hot hand” setup, with price and momentum stretched but still confirming the uptrend. Momentum has pushed the stock price to the upper Bollinger Band while RSI runs in the mid‑70s. This combination can signal overbought conditions, but also often appears in strong, trend‑following phases rather than at immediate tops.
From there, NEE stock accelerated even higher, rewarding investors who continued to hold. Today’s setup looks comparable: expanding bands, a price above the midline, and rising volume suggest buyers remain in control, even if the move is getting crowded in the short term.
From here, a consolidation phase, or a modest dip toward the 20‑day average, would be a typical digestion pattern before another attempt at new highs. In that sense, the chart supports the idea that investors are content to keep pressing what has been working, trusting that any near‑term cooling is a pause in an ongoing momentum run.
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The article "NextEra Energy: Priced for Perfection, or Justified Premium?" first appeared on MarketBeat.
