NEE Stock Recent News

Upgrading NextEra Energy to a buy due to improved valuation; shares are now trading at a sub-20x P/E, making them about 20% undervalued. NEE's Q1 results showed a 9% YoY adjusted EPS increase, driven by Florida Power & Light and renewable energy projects, despite mixed technical indicators. Management reaffirmed 6-8% earnings growth and 10% dividend increases through 2026; the stock offers a 3.4% forward yield.

Utility stocks have long been a favorite for investors who are looking for stability and consistent returns in the current market.

NextEra Energy (NEE) is poised for sustained revenue and EPS growth, driven by its growing backlog from AI demand, data center builds, and grid electrification. NEE offers dividend growth and stock price stability, making it attractive for income investors and those seeking a value play in AI infrastructure. Despite high debt and interest rate risks, NEE's accelerating backlog and proven earnings growth potential present a compelling long-term investment opportunity.

NextEra Energy (NEE 1.14%) has been a wealth-creating machine over the decades. The utility company has been growing at an above-average rate for years, powered by Florida's growing economy and its focus on investing in clean energy.

I give a buy rating for NextEra Energy due to strong 1Q25 execution, record-level originations, and appealing long-term growth with hyperscalers. NEE's storage sourcing strategy reduces cost risk versus peers reliant on China's supply chain, enhancing its competitive positioning and margin potential. Record 3.2 GW renewable and storage bookings and a growing development backlog demonstrate robust demand and future cash flow visibility.

One 7%+ yielding dividend growth fund has never cut its dividend—even through 2008 and 2020. Another utility-like stock yields 6% along with very strong dividend growth. A market-crushing blue-chip stock yields over 9% today.

I'm reaffirming my buy rating on NextEra Energy due to its robust dividend growth, solid balance sheet, and undervalued stock price. NEE's Q1 2025 results showed a 9% revenue growth and 8.8% adjusted EPS growth, driven by FPL and NER's strong performance. The company plans significant investments to meet growing electricity demand, supported by its A-rated balance sheet and favorable growth prospects in Florida.

Since my last writing, the XLU-NEE yield spread has plunged to the lowest level in at least a decade. This indicates that NEE's valuation risk is extremely low compared to the broader utility sector. I am optimistic for NEE to sustain ~10% annual dividend growth rate given its past dividend growth record and the guidance provided in its Q1 earnings report.

It's been a challenging few years for NextEra Energy (NEE 1.14%), whose stock has not reached new highs in over three years. The diversified energy company is an established dividend stock with 30 consecutive years of annual dividend increases to its name.

NEE reports better-than-expected first-quarter earnings. Strong performance of both businesses boosts the bottom line in the quarter.