NextEra Energy, Inc. was incorporated in 1984 under the laws of Florida. NEE is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy industry. NEE has two main businesses: FPL and NEER. FPL is the largest electric utility in Florida and one of the largest in the United States. FPL's strategic focus is on investing in generation, transmission and distribution facilities to continue delivering its value proposition of low cost, high reliability, excellent customer service and clean energy solutions, benefiting more than 5 million customers. NEER is the world's largest generator of renewable energy from wind and solar. NEER's strategic focus is on the development, construction and operation of long-term contracted assets in the United States and Canada, including renewable energy generation facilities, natural gas pipelines, transmission facilities and battery storage projects. In January 2019, NEE completed the acquisition of Gulf Power, a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electricity in northwest Florida.
NEE is in a neutral to slightly bearish consolidation phase after its January-February rally, with key momentum indicators bearish but oscillators suggesting potential short-term exhaustion.
The stock trades at a significant premium to traditional utility valuations with forward P/E of 26.87 and trailing P/E of 28.09, which is high relative to the sector's historical mid-teens average. The P/B ratio of 3.52 and P/S ratio of 7.00 are also elevated. A reasonable fundamental valuation range is $85.00 - $95.00, with the current price of $91.98 sitting in the upper half of this range.
