NextEra Energy: Pioneering Green Power In The U.S.

nextera energy

Are you interested in investments in renewable energies, but shy away from the above-average price fluctuations and risks of these stocks? Today, I would like to introduce you to a stock from the sector whose price performance has been quite consistent and successful. I’m talking about NextEra Energy (NEE).

NextEra Energy is No. 1 Green Electricity Producer in the USA

The utility company is the largest producer of electricity from renewable sources in the United States. The company has a presence in 30 U.S. states as well as Canada. NextEra Energy is not only active in the field of solar and wind energy, but also in the areas of gas and nuclear energy.

In the field of renewable energies, NextEra Energy is one of the driving forces in the USA. According to its own information, it’s the largest producer of electricity from renewable energies in the USA. Its market share for wind energy is around 50%. The market share for solar energy around 15% currently, but the company is expanding strongly.

In addition to solar and wind energy and natural gas, the Group is also focusing on green hydrogen. In Florida – one of the company’s regional focal points – NextEra Energy recently received approval to build the first green hydrogen plant. We can expect it to come on stream in 2023.

Renewable Energies are Now Unrivaled in Price

In addition to climate protection and reducing dependence on energy raw materials from Russia, there is another reason for the massive expansion of renewable energies. Thanks to constant technological progress, they now produce electricity considerably more cheaply than other types of energy.

In Germany, new solar parks and wind turbines can already operate at 4 cents per kilowatt hour (KWh). And in sunny regions of the U.S., production costs for solar power are even lower.

For this reason, NextEra Energy will also be able to consistently further increase its profits in the coming years through cost reductions. Since 2016, operating and maintenance costs per megawatt-hour of electricity have been reduced by more than a third. The company expects to achieve a further 10% reduction by the end of 2023.

Successful Q2 With Consistent Share Price Performance

Results for the past quarter underscore the group’s robust growth. NextEra Energy grew its second quarter revenue +32% to $5.2 billion. And its earnings are up +14% to $0.81 per share – beating analysts’ earnings forecasts by 6 cents.

Over the past ten years, the share price has increased fivefold and shown a high degree of consistency. There have only been two notable setbacks in recent years. One was during the Corona crash in 2020, and the other in the first half of 2022. Although, here the share price losses have a comparative limit at -30% and -25% respectively.

For long-term investors who want to invest in the renewable energy sector, but want to keep the risk manageable, the NextEra share is worth a closer look.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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