Juno Beach, Florida-based NextEra Energy, Inc. (NEE) generates, transmits, distributes, and sells electric power to retail and wholesale customers across North America. Valued at $145 billion by market cap, NextEra generates electricity through wind, solar, nuclear, natural gas, and other clean sources.
The utilities giant has notably underperformed the broader market over the past year. NextEra’s stock prices have dropped 10.2% over the past 52 weeks and 1.8% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 14.5% gains over the past year and 6.1% returns in 2025.
Narrowing the focus, NextEra has also underperformed the sector-focused Utilities Select Sector SPDR Fund’s (XLU) 15.8% surge over the past 52 weeks and 13.4% gains in 2025.
NextEra’s stock prices plunged 6.1% and maintained a negative momentum for the next three trading sessions after the release of its Q2 results on Jul. 23. Driven by continued growth in demand, the company’s topline for the quarter soared 10.4% year-over-year to $6.7 billion. However, this figure missed the Street expectations by $819.7 million, which unsettled investor confidence. On the positive note, its adjusted EPS grew 9.4% year-over-year to $1.05 and surpassed consensus estimates by 2.9%.
For the full fiscal 2025, ending in December, analysts expect NextEra to deliver an adjusted EPS of $3.68, up 7.3% year-over-year. Moreover, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Despite the recent revenue miss and dip in stock prices, analysts remain optimistic about the company’s long-term prospects, as energy demand is expected to grow at a high rate in North America over the coming decades. The stock has a consensus “Moderate Buy” rating overall. Of the 20 analysts covering the stock, opinions include 12 “Strong Buys,” seven “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, when 13 analysts gave “Strong Buy” recommendations.
On Jul. 21, BMO Capital analyst James Thalacker reiterated an “Outperform” rating on NEE and raised the price target from $77 to $81.
NEE’s mean price target of $82.06 suggests a 16.6% upside potential. Meanwhile, the Street-high target of $97 represents a substantial 37.8% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
