NextEra Energy Inc (NEE): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NextEra Energy ( NEE) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.7%. By the end of trading, NextEra Energy fell 90 cents (-1.3%) to $70.76 on average volume. Throughout the day, 1.7 million shares of NextEra Energy exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $70.27-$71.23 after having opened the day at $71.20 as compared to the previous trading day's close of $71.66. Other companies within the Utilities sector that declined today were: Pure Cycle Corporation ( PCYO), down 4.2%, Centrais Eletricas Brasileiras ( EBR), down 3.3%, Energy Company of Minas Gerais ( CIG), down 2.7%, and NRG Energy ( NRG), down 2.7%.
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NextEra Energy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. The company is involved in the generation of renewable energy from wind and solar projects. NextEra Energy has a market cap of $30.32 billion and is part of the utilities industry. The company has a P/E ratio of 14, equal to the average utilities industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates NextEra Energy as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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