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Is NextEra (NEE) a Must-Buy AI Energy Stock Before Earnings?
Key Takeaways
{\"0\":\"Buy NextEra as a best-in-class AI energy stock with breakout potential.\\r\\n\\r\\n\",\"1\":\"NEE boasts a strong earnings and revenue growth outlook, great value, dividends, and AI upside.\"}
NextEra Energy (NEE - Free Report) is one of the largest electric power and energy infrastructure companies, with a growing portfolio across solar, battery storage, nuclear energy, and beyond.
NEE stock doubled the S&P 500 over the past 25 years, soaring over 900%. Despite this run, NextEra Energy climbed just 10% in the past five years.
Yet, there are signs of a turnaround brewing. NextEra Energy stock climbed 15% in the past month to the top of a key technical range.
NextEra Energy could easily become the next breakout stock in the artificial intelligence energy trade, especially if it provides solid guidance when it reports its Q3 results on October 28.
It’s time for investors to consider buying NextEra Energy as a potential best-in-class AI energy stock that boasts a strong earnings and revenue growth outlook, great value, dividends (2.7% yield), and breakout potential.
NEE might gain even more momentum as Wall Street takes profits on speculative nuclear energy stocks such as Oklo and other AI energy stocks that have skyrocketed over the last few years.
The Bull Case for NextEra Energy Stock
The renewable energy and Florida-based utility powerhouse steadily grew its earnings and raised its dividend over the past 25 years as it adapted and expanded alongside shifting energy trends in the U.S.
NextEra Energy’s Florida Power & Light (FPL) segment is one of the largest electric utilities in the U.S. On top of its massive utility in a key growth region of the U.S., NEE’s NextEra Energy Resources division is one of the biggest electric power and energy infrastructure companies in the world.
All in, NEE is one of the largest producers of wind and solar energy on the planet, a battery storage leader, and an under-the-radar nuclear energy standout. Plus, FPL “continues to operate and invest in the nation's largest gas-fired fleet.”
Image Source: Zacks Investment Research
Generative AI platforms like ChatGPT use 10X the energy of an average Google search, while large data centers consume as much electricity as a mid-sized city.
This backdrop is why the AI future that the hyperscalers such as Amazon and Meta are betting on is impossible without spending hundreds of billions, if not trillions of dollars, expanding energy generation capacity and the grid over the coming decades.
NextEra Energy is prepared to be a long-term winner as Meta (META - Free Report) , Amazon (AMZN - Free Report) , and all the AI hyperscalers turn to nuclear and renewables to drive their AI growth. On top of that, the U.S. is slowly weaning off coal while growing the economy and using more energy than ever.
Image Source: Zacks Investment Research
Speaking of, NextEra Energy Resources added 3.2 GW to its backlog in the second quarter, including more than 1 GW serving hyperscalers. Its backlog hit nearly 30 GW, with roughly 6 GW of projects in its backlog intended to serve technology and data center customers.
NEE said last quarter that it will have over 10.5 GW serving technology and data center customers across the U.S. through its operating portfolio and its expected buildout.
Buy NEE Stock for Dividends, Value, and Breakout Potential
The stock has climbed around 220% in the past decade, blowing away its highly ranked Utility-Electric Power industry’s 45%, and lagging not too far behind the S&P 500’s 240%. This is more impressive since NEE has climbed just 10% over the last five years while the benchmark soared 100%.
The energy stock underperformed over the last five years as Wall Street grew concerned about slowing earnings and dividend growth, as well as the possibility that some of the beneficial government subsidies for renewable energy would disappear. On top of that, higher interest rates made dividend-paying utility stocks less attractive.
Image Source: Zacks Investment Research
Thankfully, NEE said last quarter that its “long-term financial expectations remain unchanged,” calling for earnings per share to grow at a roughly 6% to 8% range through 2027, off a 2024 base. NextEra Energy also continues to project ~10% annual dividend per share growth through at least 2026. And the Fed is set to keep lowering interest rates.
The company’s dividend currently yields 2.7%. NextEra Energy is one of roughly 70 S&P 500 Dividend Aristocrats (meaning it’s paid and raised dividends for at least 25 straight years). And 14 of the 23 brokerage recommendations Zacks has are “Strong Buys,” with only one sell.
The energy giant is projected to grow its revenue by 13% this year and 14% next year. NextEra Energy is projected to grow its adjusted earnings by 7% in 2025 and 8% in 2026, following a 10% average expansion in the past five years. NEE has also topped our bottom-line estimates for five years running.
Image Source: Zacks Investment Research
NextEra Energy held its ground above its pre-Covid selloff peaks, and its 15% charge in the past month has it on the verge of overtaking a key technical range. It's also far from overheated compared to Oklo (OKLO - Free Report) and other AI energy stocks that have skyrocketed in 2025.
NEE stock trades 11% below its all-time high, and it could easily break out if impresses Wall Street. On the valuation front, NextEra trades at a 36% discount to its highs and in line with its 10-year median at 21.4X forward 12-month earnings.
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Is NextEra (NEE) a Must-Buy AI Energy Stock Before Earnings?
Key Takeaways
NextEra Energy (NEE - Free Report) is one of the largest electric power and energy infrastructure companies, with a growing portfolio across solar, battery storage, nuclear energy, and beyond.
NEE stock doubled the S&P 500 over the past 25 years, soaring over 900%. Despite this run, NextEra Energy climbed just 10% in the past five years.
Yet, there are signs of a turnaround brewing. NextEra Energy stock climbed 15% in the past month to the top of a key technical range.
NextEra Energy could easily become the next breakout stock in the artificial intelligence energy trade, especially if it provides solid guidance when it reports its Q3 results on October 28.
It’s time for investors to consider buying NextEra Energy as a potential best-in-class AI energy stock that boasts a strong earnings and revenue growth outlook, great value, dividends (2.7% yield), and breakout potential.
NEE might gain even more momentum as Wall Street takes profits on speculative nuclear energy stocks such as Oklo and other AI energy stocks that have skyrocketed over the last few years.
The Bull Case for NextEra Energy Stock
The renewable energy and Florida-based utility powerhouse steadily grew its earnings and raised its dividend over the past 25 years as it adapted and expanded alongside shifting energy trends in the U.S.
NextEra Energy’s Florida Power & Light (FPL) segment is one of the largest electric utilities in the U.S. On top of its massive utility in a key growth region of the U.S., NEE’s NextEra Energy Resources division is one of the biggest electric power and energy infrastructure companies in the world.
All in, NEE is one of the largest producers of wind and solar energy on the planet, a battery storage leader, and an under-the-radar nuclear energy standout. Plus, FPL “continues to operate and invest in the nation's largest gas-fired fleet.”
Image Source: Zacks Investment Research
Generative AI platforms like ChatGPT use 10X the energy of an average Google search, while large data centers consume as much electricity as a mid-sized city.
This backdrop is why the AI future that the hyperscalers such as Amazon and Meta are betting on is impossible without spending hundreds of billions, if not trillions of dollars, expanding energy generation capacity and the grid over the coming decades.
NextEra Energy is prepared to be a long-term winner as Meta (META - Free Report) , Amazon (AMZN - Free Report) , and all the AI hyperscalers turn to nuclear and renewables to drive their AI growth. On top of that, the U.S. is slowly weaning off coal while growing the economy and using more energy than ever.
Image Source: Zacks Investment Research
Speaking of, NextEra Energy Resources added 3.2 GW to its backlog in the second quarter, including more than 1 GW serving hyperscalers. Its backlog hit nearly 30 GW, with roughly 6 GW of projects in its backlog intended to serve technology and data center customers.
NEE said last quarter that it will have over 10.5 GW serving technology and data center customers across the U.S. through its operating portfolio and its expected buildout.
Buy NEE Stock for Dividends, Value, and Breakout Potential
The stock has climbed around 220% in the past decade, blowing away its highly ranked Utility-Electric Power industry’s 45%, and lagging not too far behind the S&P 500’s 240%. This is more impressive since NEE has climbed just 10% over the last five years while the benchmark soared 100%.
The energy stock underperformed over the last five years as Wall Street grew concerned about slowing earnings and dividend growth, as well as the possibility that some of the beneficial government subsidies for renewable energy would disappear. On top of that, higher interest rates made dividend-paying utility stocks less attractive.
Image Source: Zacks Investment Research
Thankfully, NEE said last quarter that its “long-term financial expectations remain unchanged,” calling for earnings per share to grow at a roughly 6% to 8% range through 2027, off a 2024 base. NextEra Energy also continues to project ~10% annual dividend per share growth through at least 2026. And the Fed is set to keep lowering interest rates.
The company’s dividend currently yields 2.7%. NextEra Energy is one of roughly 70 S&P 500 Dividend Aristocrats (meaning it’s paid and raised dividends for at least 25 straight years). And 14 of the 23 brokerage recommendations Zacks has are “Strong Buys,” with only one sell.
The energy giant is projected to grow its revenue by 13% this year and 14% next year. NextEra Energy is projected to grow its adjusted earnings by 7% in 2025 and 8% in 2026, following a 10% average expansion in the past five years. NEE has also topped our bottom-line estimates for five years running.
Image Source: Zacks Investment Research
NextEra Energy held its ground above its pre-Covid selloff peaks, and its 15% charge in the past month has it on the verge of overtaking a key technical range. It's also far from overheated compared to Oklo (OKLO - Free Report) and other AI energy stocks that have skyrocketed in 2025.
NEE stock trades 11% below its all-time high, and it could easily break out if impresses Wall Street. On the valuation front, NextEra trades at a 36% discount to its highs and in line with its 10-year median at 21.4X forward 12-month earnings.