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

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 higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.4%. By the end of trading, NextEra Energy rose 75 cents (1.1%) to $71.30 on average volume. Throughout the day, 1.9 million shares of NextEra Energy exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $70.38-$71.30 after having opened the day at $70.52 as compared to the previous trading day's close of $70.55. Other companies within the Utilities sector that increased today were: Consolidated Water Company ( CWCO), up 4.8%, American DG Energy ( ADGE), up 2.8%, Delta Natural Gas Company ( DGAS), up 2.8%, and Inergy L.P ( NRGY), up 2%.
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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 billion and is part of the utilities industry. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 2.4% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and six 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, 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.

On the negative front, Centrais Eletricas Brasileiras ( EBR.B), down 9.8%, Centrais Eletricas Brasileiras ( EBR), down 7.2%, Energy Company of Parana ( ELP), down 3.5%, and Energy Company of Minas Gerais ( CIG), down 3.2%, were all laggards within the utilities sector with EQT ( EQT) being today's utilities sector laggard.

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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