New Trade for June 20th, 2023

Stocks ticked lower this morning as market participants plotted their next moves. Over the past  several weeks participants wary of missing a potential new bull market have poured into popular growth stocks.  Following the Nasdaq’s impressive eight-week streak of consistent gains, many investors are looking for growth stocks that still have room to run.  

Today’s trade alert highlights an unexpected, one-of-a-kind growth stock that the experts see posting double-digit gains over the coming months.

NextEra Energy Inc. (NEE) 

Most stocks from the utility sector are slow-growing income plays.  As such, an electric utility stock wouldn’t typically be considered as a growth stock.   However, Wall Street expects NextEra Energy to grow its earnings by an annual average of around 9% over the next five years. This comes on the heels of averaging more than 8% adjusted earnings growth since 2007. For all intents and purposes, NextEra Energy is a growth stock within the utility sector.

The biggest differentiator that has helped NextEra achieve this stellar growth rate is its focus on renewable energy. NextEra is currently generating 31 gigawatts (GW) of capacity from renewable energy sources, including 23 GW from wind and 5 GW from solar – which has helped to substantially lower electricity generation costs for the company and its customers. 

NextEra Energy pays an annual dividend of 2.47% and is currently trading at its lowest 12-month forward price-to-earnings ratio in five years, which makes it a superior growth opportunity right now.  Overall, NEE gets a Strong Buy rating from the consensus, based on 19 recent reviews that include 15 Buys and 4 Holds. An average price target of $90, represents 20% upside.  

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