An Alternative Energy Stock for Mainstream Investors

Some bargain stocks in the alternative energy market have transitioned into fully-fledged growth stocks, and NextEra Energy Inc. (NYSE: NEE) is one of the best of the bunch. This company is focused on electric energy infrastructure, with production operations in wind, solar, and gas. Unlike some of the smaller companies in this segment, NextEra generates a profit and a dividend.

7 of the Biggest Mistakes People Make When Choosing a Financial Advisor Learn More

EnergyIn the 2019 fiscal year, NextEra reported revenue growth of 7.26%, contributing to a gross profit margin of 30.12%. Its profitability goes to the bottom line with an EBITDA margin of 46.03%. Earnings have been strong even during the Coronavirus Pandemic. In its most recent fiscal report, the company revealed adjusted earnings per share of $2.61, a year over year increase of 11.1%.

The company is witnessing high demand in the renewable market. Its established business model and vast generation network allows it to capitalize on this demand. The company has recently raised its forecast for the long-term. In 2022, it expects earnings to reach as high as $2.75 per share. In 2023, it projects growth again with earnings per share of $2.97.

The company is also in the process of splitting its stock 4-for-1. This will be initiated on October 27. This will lower the stock price but shareholders at the time will automatically transition to the split. Because each share will become more affordable, it could drive up demand for this pick.

A dividend yield of 2.00% further reinforces the fact that this is one of the best energy picks of 2020.

Key Data:

  • 1 Year Price Growth: 29%
  • YTD Price Growth: 43%
  • 3 Month Price Growth: 29%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

You May Also Like