NextEra Energy Close to Lower Rail of Upwardly-Sloped Channel
The utilities sector has been one of the last bastions of hope in the recent market slide and it finally gave a little in the past week. One utility stock that has held up and even gained ground in the last few months is NextEra Energy (NYSE: NEE).
The stock has formed a trend channel over the last six months with the lower rail connecting lows from June, September, and November. The parallel upper rail connects highs from August, November, and December.
With the utilities sector finally seeing some selling pressure last week, NextEra dipped down in to oversold territory based on the daily stochastic readings. This is the first time the indicators have been in oversold territory since the end of September and only the second time in the last six months.
NextEra has mixed fundamentals readings. The earnings have grown nicely in recent years. The average annual growth rate over the last three years has been 9% and analysts expect earnings to grow by 16% this year.
Sales have not been as strong as earnings and have in fact declined in the last three years at a pace 0f 1% per year. Sales fell by 8% in the most recent quarter.
The company does have an above average profit margin at 24.8% and the ROE is at 12.1%.
Given the overall picture for NextEra and given the current market environment, the stock looks like a possible safe haven.
NEE's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for NEE turned positive on July 03, 2025. Looking at past instances where NEE's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 02, 2025. You may want to consider a long position or call options on NEE as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
NEE moved above its 50-day moving average on July 01, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NEE advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 303 cases where NEE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NEE moved out of overbought territory on June 16, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NEE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NEE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.740) is normal, around the industry mean (1.710). P/E Ratio (17.606) is within average values for comparable stocks, (23.490). Projected Growth (PEG Ratio) (2.625) is also within normal values, averaging (2.640). Dividend Yield (0.030) settles around the average of (0.069) among similar stocks. P/S Ratio (4.579) is also within normal values, averaging (3.122).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an investment holding company with interests in generating and distributing electricity
Industry ElectricUtilities
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