NEE has two important trend lines in its sights
NextEra Energy, Inc. (NYSE: NEE) is a clean energy company that produces zero-emission electricity from seven commercial nuclear power plants in Florida, New Hampshire and Wisconsin. On its most recent review, NEE was up 2.2% to trade at $ 75.48, on its way to its highest close in nearly two months.
During this recent consolidation, the stock’s 200-day moving average has kept breakouts in check. Keep an eye on that trendline later today to see if it has been taken. Despite a 12-month lead of 28%, the next milestone for NEE will be the break-even level of the share since the beginning of the year. The stock also has a forward dividend of $ 1.54 and a dividend yield of 2.11%.
From a fundamental perspective, NextEra Energy’s stock is valued at the high end of the spectrum with a price / earnings ratio of 35.00. This fact is not supported by the company’s lack of consistency in terms of sales and earnings. Over the past few years, NextEra Energy has seen a decline in annual sales in fiscal 2018 and fiscal 2020. NEE continued to see consecutive net profit declines in FY 2019 and FY 2020. Another red flag rests on the company’s balance sheet with a whopping $ 52.67 billion in total debt and just $ 1.46 billion in cash.
That said, NextEra Energy stock remains a huge company valued at $ 145 billion, which overall is less likely to fail in the long run. NextEra Energy stock also has potential as a recovery move, with NEE earnings still down 11% since fiscal year 2019 and net income down 37% since fiscal year 2018.
From a volatility point of view, too, these options are currently favorably valued. The stock’s Schaeffer’s Volatility Index (SVI) of 18% is in the lower percentile of its annual range, which means option players have rarely priced in lower volatility expectations over the past year. It’s also worth noting that NEE is on the Schaeffer’s volatility scorecard (SVS) with a score of 72 out of 100. In other words, the security has consistently realized a higher volatility than its options have priced in, a boon for premium buyers.