In the past month, four analysts have increased their EPS estimates for this utility.
NextEra Energy, Inc. (NEE)
From Safe Money Report
It’s time to pay a visit to an old friend, the utility giant NextEra Energy, Inc. (Rated “B”). NextEra is the electric, wind and solar powerhouse that owns Florida Power & Light, Gulf Power Co., a range of clean-energy affiliates and generation capacity in a handful of other U.S. states.
The company is back in the news after the Wall Street Journal reported NextEra wants to buy competitor Duke Energy Corp. (DUK, Rated “C”). Duke serves 7.7 million individual electricity customers and 1.6 million natural gas customers in several states in the Midwest and Southeast. It also provides power to a range of commercial businesses. Combining the two firms would create a $60 billion-plus colossus, qualifying any deal as the biggest utility merger ever.
As of the end of last month, Duke was still rebuffing NextEra’s overtures. But NextEra reportedly isn’t giving up. Even if the deal ultimately doesn’t go through, the company’s strong financial results and almost 2% dividend yield are attractive. It doesn’t hurt that NextEra has also pursued a series of smaller deals over the last few years, all of which are adding to the top and bottom line.
It’s also a “Buy” according to Weiss Ratings. Go ahead and buy a 2.5% position in NEE at the market.
Mike Larson, Safe Money Report, 1-877-934-7778, www.weissratings.com, October 2020