Is NextEra Energy Overvalued After Its 18% 1-Month Surge?

Through the close of trading Oct. 10, shares of NextEra Energy (NYSE: NEE) delivered an impressive 18% gain over the past month. This not only beat the S&P 500's 1% advance and edged out all 30 of its peers in the Utilities Select Sector SPDR Fund (NYSEMKT: XLU) -- which itself was up 8%. The move also marked NextEra's best one-month rally since June 2024. The leadership change within this defensive sector was also notable for several other reasons, including the fact that NextEra Energy is also the largest company in the utility sector by market cap with a $172 billion valuation that leaves it nearly 50% larger than its closest peer, Constellation Energy, which is worth about $115 billion. Prior to this short-term run to the top of the utilities leaderboard, NextEra had been lagging the sector and the broader market, on a six-month, year-to-date, one-year, three-year, and five-year basis. Even with its recent outperformance, Koyfin data shows NextEra's 19% year-to-date gain leaves it 18th of 31 utility sector members. On a five-year basis, the underperformance is even more stark, as NextEra shares have returned just 24% in the past 60 months, ranking them 25th of 31 in the group, at a time when the utility sector rose 66% and the S&P 500 gained 90%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool