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Here's How Much You'd Have If You Invested $1000 in NextEra Energy a Decade Ago

Zacks Equity Research
Updated ·4-min read

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in NextEra Energy (NEE) ten years ago? It may not have been easy to hold on to NEE for all that time, but if you did, how much would your investment be worth today?

NextEra Energy's Business In-Depth

With that in mind, let's take a look at NextEra Energy's main business drivers.

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Juno Beach, FL-based NextEra Energy Inc. (previously known as FPL Group Inc.) is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The company has both regulated and non-regulated energy-related products and services, with operations in 27 states in the U.S. and four provinces in Canada. NextEra Energy was founded in 1925. The company serves nearly 10 million people through approximately 5 million customer accounts.

NextEra Energy's primary subsidiaries are Florida Power & Light Company (FPL), Gulf Power Company and NextEra Energy Resources LLC (NEER). NextEra Energy Capital Holdings, Inc. (NEECH) is a wholly owned subsidiary of NextEra, which owns and provides funds for NEER and other operating subsidiaries apart from FPL and its subsidiaries. In 2014, NextEra Energy formed NextEra Energy Partners, LP  to own, manage and acquire contracted clean energy projects.

NextEra Energy produces a large volume of electricity from wind and solar energy. The company, through its subsidiaries, is advocating higher usage of clean fuel sources to generate electricity and aiming to reduce total carbon emissions by 67% within 2025 from 2005 base.

FPL and NEER contributed $17,282 million and $3,720 million to its top line in 2022, respectively. Corporate and Other negatively impacted the top line by $46 million in 2022.

On Jan 1, 2021, Gulf Power merged into FPL. Gulf Power will continue as a separate operating division during 2021, serving the existing customers under separate retail rates.

NEER is the competitive energy business of NextEra and plans to add 32,700-41,800 megawatts (MW) of clean power generation assets across the United States over the 2023-2026 time frame. Amid the challenges posed by the outbreak of COVID-19, the company ensured that its major capital projects continued to proceed without any hindrances.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in NextEra Energy ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in April 2013 would be worth $3,924.85, or a 292.48% gain, as of April 12, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 157.88% and the price of gold increased 23.32% over the same time frame in comparison.

Analysts are forecasting more upside for NEE too.

NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions. The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds. Its shares have outperformed the industry in the past three months. However, the nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.

The stock has jumped 5.08% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

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Zacks Investment Research