NextEra Energy: Charging Into Q4 Earnings — Will Clean Energy's Powerhouse Keep Its Momentum?

NextEra Energy Inc. NEE is ready to report its fourth-quarter earnings on Friday before the market opens. Analysts expect the energy giant to report earnings per share (EPS) of 52 cents and revenues of $7.53 billion.

Despite recent setbacks—the company’s stock is down 4.31% over the past six months and 3.64% year-to-date—NextEra Energy has a lot to prove as it faces increasing competition in the renewable energy space.

JPMorgan’s Mark Strouse believes that the growth-oriented strategy of NextEra's subsidiary, Nextera Energy Partners LP NEP, could help stabilize its long-term outlook, despite challenges with financing and project development.

Investors should pay attention to cash flow visibility, U.S.-based manufacturing and diversified end markets when considering clean energy stocks in the current environment.

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What's Ahead For Clean Energy?

NextEra Energy's stock isn’t the only clean energy stock on a rocky ride lately. Brookfield Renewable Partners LP BEP and Brookfield Renewable Corp BEPC are two names that investors have been eyeing. JPMorgan maintains an "Overweight" rating on both. The bank has a price target of $28 for BEP and $32 for BEPC by December 2025.

Meanwhile, Enphase Energy Inc ENPH, another clean energy player, is expected to continue its growth with a price target of $91, although analysts have reduced the target from a previous $112.

But not all players are in favor—Nextera Energy Partners LP NEP, with its reliance on NextEra, remains a bit of a wildcard. With JPMorgan’s neutral rating and a revised price target of $20 for NEP, it's clear that the market views some caution as warranted.

In contrast, Nextracker Inc NXT, a leader in solar energy, has seen an "Overweight" rating with a target price of $58 by December 2025.

Is the Clean Energy Rally Losing Steam?

Despite these targets, NextEra's recent struggles and broader market conditions, including interest rates and potential delays in new projects, suggest that clean energy stocks may face a bumpy ride ahead.

Still, with renewable energy's long-term growth prospects and NextEra's vast footprint in solar and wind generation, there's reason to believe that the utility will continue to be a cornerstone in any clean energy-focused portfolio.

As NextEra prepares to deliver its fourth-quarter results, all eyes will be on whether the company can deliver on expectations.

Could a surprise earnings beat turn the tide for NextEra? Despite its diversified business model and massive scale in renewable energy, NextEra Energy's short-term prospects remain tied to broader market dynamics at play.

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