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 0.1%. By the end of trading, NextEra Energy fell $0.86 (-1.1%) to $80.24 on light volume. Throughout the day, 1,329,391 shares of NextEra Energy exchanged hands as compared to its average daily volume of 2,041,200 shares. The stock ranged in price between $79.97-$81.14 after having opened the day at $81.08 as compared to the previous trading day's close of $81.10. Other companies within the Utilities sector that declined today were: Empresa Distribuidora y Comercializadora No ( EDN), down 9.4%, Huaneng Power International ( HNP), down 5.1%, GreenHunter Energy ( GRH), down 4.1% and U.S. Geothermal ( HTM), down 3.1%.
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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 $34.2 billion and is part of the utilities industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and 7 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 expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Companhia De Saneamento Basico Do Estado De ( SBS), down 3.4%, Atlantic Power Corporation ( AT), down 2.7%, Cadiz ( CDZI), down 2.5% and Dynegy ( DYN), down 2.4% , were all gainers within the utilities sector with EQT ( EQT) being today's featured utilities sector leader.

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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