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 NextEra Energy ( NEE) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified NextEra Energy as such a stock due to the following factors:
- NEE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $163.1 million.
- NEE has traded 2.8 million shares today.
- NEE traded in a range 203% of the normal price range with a price range of $2.80.
- NEE traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in NEE with the Ticky from Trade-Ideas. See the FREE profile for NEE NOW at Trade-Ideas More details on NEE: 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. The stock currently has a dividend yield of 3.1%. NEE has a PE ratio of 23.7. Currently there are 11 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and 7 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 $36.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.35 and a short float of 1.9% with 4.36 days to cover. Shares are up 24.3% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates NextEra Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.1%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
- 38.61% 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 15.94% is above that of the industry average.
- Net operating cash flow has slightly increased to $1,168.00 million or 6.86% when compared to the same quarter last year. Despite an increase in cash flow, NEXTERA ENERGY INC's cash flow growth rate is still lower than the industry average growth rate of 20.29%.
- The net income growth from the same quarter one year ago has exceeded that of the Electric Utilities industry average, but is less than that of the S&P 500. The net income increased by 0.7% when compared to the same quarter one year prior, going from $607.00 million to $611.00 million.
- NEXTERA ENERGY INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, NEXTERA ENERGY INC reported lower earnings of $4.56 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($4.96 versus $4.56).
- You can view the full NextEra Energy Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.