XLU - NextEra Energy: Fundamentals And Technicals Solid But Shares Rally To Fair Value (Rating Downgrade)
2024-07-16 05:12:55 ET
Summary
- NextEra Energy has benefitted from a rise in the Utilities sector, with XLU second only to XLK since April.
- Solid earnings from power-generation group helped back in springtime, with key earnings from NEE on tap next week.
- Interest rates have fallen amid a bull steepener across the yield curve, likely a tailwind for the yield-sensitive Utilities sector.
- While I am increasing my fair value estimate to $76, shares up 20% since April result in a stock near full valuation.
- I highlight key price levels to monitor ahead of earnings next week.
NextEra Energy ( NEE ) has benefitted from an overall rise in the Utilities sector over the past three months. The Utilities Select Sector SPDR ETF ( XLU ) is second only to the Information Technology ETF ( XLK ) since the middle of April. Solid earnings from the power-generation group helped back in the springtime, and key earnings from NEE are on tap next week. Since April, interest rates have fallen amid a bull steepener across the yield curve, which is likely a tailwind for the yield-sensitive Utilities sector. ...
NextEra Energy: Fundamentals And Technicals Solid, But Shares Rally To Fair Value (Rating Downgrade)