8. NextEra Energy (NEE), formerly FPL Group, operates the third-largest nuclear power-generation fleet in the U.S. It also generates electricity using wind and solar power. Its third-quarter profit gained 35% to $721 million, or $1.74 a share, as revenue ascended 4.9% to $4.7 billion. The operating margin extended from 19% to 24%. NextEra's stock trades at a book value multiple of 1.6, a sales multiple of 1.4 and a cash flow multiple of 5.7, on par with utility averages. Still, 15 analysts rate its stock "buy" and eight rate it "hold." No analysts rank its shares "sell."
Dividend Growth: NextEra pays a dividend yield of 3.7% with a payout ratio of 40%. It has a three-year dividend growth rate of 7.1% and a five-year growth rate of 7%.
Bullish Scenario: JPMorgan forecasts that NextEra's stock will climb 19% to $64 in 12 months.Bearish Scenario: Sanford Bernstein values NextEra at $51, implying 5% downside in the next year.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV