Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified NextEra Energy as such a stock due to the following factors:
- NEE has 20x the normal benchmarked social activity for this time of the day compared to its average of 1.68 mentions/day.
- NEE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $197.9 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on NEE:
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric energy in the United States and Canada. The company generates electricity from gas, oil, solar, coal, petroleum coke, and nuclear sources. The stock currently has a dividend yield of 2.9%. NEE has a PE ratio of 21.5. Currently there are 11 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for NextEra Energy has been 1.8 million shares per day over the past 30 days. NextEra Energy has a market cap of $43.0 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.30 and a short float of 3.6% with 7.92 days to cover. Shares are up 16.7% year-to-date as of the close of trading on Thursday.
rates NextEra Energy as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- NEE's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 38.84% is the gross profit margin for NEXTERA ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.18% is above that of the industry average.
- Net operating cash flow has increased to $1,431.00 million or 22.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.70%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, NEXTERA ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- NEXTERA ENERGY INC's earnings per share declined by 22.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NEXTERA ENERGY INC reported lower earnings of $4.03 versus $4.56 in the prior year. This year, the market expects an improvement in earnings ($5.30 versus $4.03).
- You can view the full NextEra Energy Ratings Report.