NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear,natural gas, and other clean energy. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. The company had approximately 33,276 megawatts of net generating capacity; approximately 90,000 circuit miles of transmission and distribution lines; and 883 substations. It serves approximately 12 million people through approximately 5.9 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.

NextEra Energy has a strong operating base combined with a noticeably more expensive valuation in terms of multiples. A P/E of 18.59 is below the industry median, which supports the idea that earnings are already being fairly well monetized by the market, but a P/S of 5.97 and a P/B of 2.89 are significantly above industry benchmarks, limiting rerating potential. What is especially concerning is the lack of visible free cash flow cushion: P/FCF is shown as 0.00, so investors should keep in mind that the quality of cash conversion is not confirmed by this data set. The company’s strength lies in consistently high margins: gross margin of 81.54%, operating margin of 29.82%, and net margin of 32.40% are above the median and generally improving over the years. Capital profitability also looks convincing: ROE of 14.00%, ROA of 3.91%, ROI of 5.88%, and return on tangible equity of 15.13% are all above industry benchmarks and show an upward trend. Revenue, EBITDA, and profit are recorded at high absolute levels, while growth in assets and equity points to balance sheet expansion and support for the investment program. At the same time, leverage remains an important constraint: a debt/equity ratio of 1.45 is above the median, long-term debt is increasing, and total liabilities are growing faster than capital, which is typical for a capital-intensive utility business, but still increases sensitivity to interest rates and refinancing. Liquidity is weak: a current ratio of 0.53 and a quick ratio of 0.44 are below industry benchmarks, so short-term resilience is limited. The dividend yield of 0.76% looks stable but not high, and its trend is slightly declining rather than strengthening. Overall, the fundamentals point to a high-quality, profitable, and growing business, but one that trades at a premium on revenue and book value metrics and carries a notable debt burden. For investors, this means there is upside potential, but it does not look strong enough to justify an aggressive increase in the target price. The base forecast is broadly confirmed, but due to expensive multiples and weak liquidity, only a moderate cautious downward adjustment is appropriate.

NextEra Energy, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

Strong profitability and earnings growth support NEE, but a high P/S and P/B valuation, weak liquidity, and debt limit the upside.

NextEra Energy NEE currently trades at a forward 12-month price-to-earnings (P/E) multiple of 19.39X, which is above the Zacks Utility Electric - Power industry average of 14.76X and the broader Utilities sector’s 15.29X.
This premium valuation is likely due to the strong operational performance and growing customer base, both of which continue to support increasing demand for its services.
Other utilities, Duke Energy Corporation DUK and The Southern Company SO, also have strong capacity to generate clean electricity. Duke Energy and Southern Company are currently trading at P/E12M of 17X and 18.23X, respectively. Both utilities are trading at a discount compared with NextEra Energy.
Shares of NextEra Energy have gained 15.1% in the past year compared with the industry’s rise of 8.7%.
Is NextEra Energy's current premium justified given rising power demand in its service territories and a rising backlog of renewable generation? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add this stock to their portfolio.
Factors Behind NextEra Energy Stock’s Consistent Performance?
Florida’s economic growth is supporting higher electricity demand and customer additions for NextEra Energy. Its subsidiary, Florida Power & Light, benefits from competitive residential rates and continued infrastructure investments, supporting customer growth.
NextEra Energy Resources is expanding its renewable portfolio, targeting 76.6-107.6 GW of new renewable capacity during 2026-2032. A development backlog exceeding 33 GW provides strong visibility into growth. Data centers represent a strong long-term growth opportunity. NextEra Energy Resources is evaluating 30 potential hubs, targeting 40 by year-end 2026 with 15 GW of new generation planned by 2035 and upside potential exceeding 30 GW.
The company is also diversifying through acquisitions and asset rotation. The Symmetry acquisition expanded its natural gas capabilities for commercial and industrial customers, while Caliber added non-operating shale energy interests.
Strategic partnerships are strengthening NextEra Energy's growth outlook. Agreements with Google Cloud and Meta are expanding demand for the company's wind, solar and battery storage projects while adding long-duration contracted revenues. These PPAs enhance earnings visibility, reduce exposure to power price volatility and diversify the customer base through high-quality counterparties.
NextEra Energy’s Earnings Estimates Moving North
The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.60%, respectively.
The same for DUK’s 2026 and 2027 earnings per share indicates a year-over-year increase of 6.5% and 6.43%, respectively.
NEE Stock Returns Better Than Its Industry
Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.28%, ahead of the industry average of 11.4%.
Southern Company’s trailing 12-month ROE is 12.93%, also better than its industry peers.
NextEra Energy’s Capital Return Program
NextEra Energy expects to increase the dividend rate by nearly 10% annually through at least 2026 and grow 6% per year from year-end 2026 through 2028, subject to the approval of its board of directors. NEE’s current quarterly dividend rate is 62.32 cents per share. The dividend yield of 3.02% is better than the S&P 500 composite’s yield of 1.42%.
NEE’s Net Margin
Net margin measures the percentage of revenue retained as profit after deducting all expenses, taxes and interest. NEE’s net margin is currently pegged at 28.44% compared with the industry’s 15.81%.
Wrapping Up
NextEra Energy continues to deliver steady performance, supported by growing demand for clean energy. The company is expanding its clean energy portfolio, while Florida’s strong economic growth provides additional opportunities for sustained utility expansion.
Positive earnings estimate revisions and solid return on equity support maintaining positions in this Zacks Rank #3 (Hold) stock. However, NEE’s premium valuation suggests new investors may consider waiting for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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
This article originally published on Zacks Investment Research (zacks.com).

NEE Stock Trades at a Premium Valuation: Buy, Hold or Stay Away?

Key Points
To brace against market pullbacks, add some defensive stocks or funds to your mix.
Defensive industries include healthcare, utilities, and consumer staples.
Dividend payers can be great to hold in market downturns, too.
Is a stock market crash imminent? Well, no one knows for sure, but roughly 38% of investors surveyed by the American Association of Individual Investors reported expecting the stock market to decline over the coming six months (as of early September). Another worrisome sign is the S&P 500's historically high valuation. The cyclically adjusted price-to-earnings (CAPE) ratio was recently at 41.4, far higher than its long-term average of 17.4 and close to an all-time high of 44 reached in 1999 before the dot-com bubble turned into a crash.
It's generally not smart to jump out of the market fearing a crash -- because that's market timing -- and your timing may well be off. Instead, to calm your jitters, you might just invest in some exchange-traded funds (ETFs) that are built to withstand bear markets better than average investments.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A market crash or correction will happen one of these days. Here are some ETFs to consider, to brace against that. Each is focused on a "defensive" part of the economy -- on businesses that consumers will generally keep buying from, no matter how the economy is doing.
Vanguard Health Care Index Fund ETF
The Vanguard Health Care Index Fund ETF (NYSEMKT: VHT) is a prime example. In a recession, people will still need healthcare -- they will still buy their medications (to the degree that they're able to) and will still visit doctors. This fund recently held 417 stocks, with top holdings including Eli Lilly, Johnson & Johnson, and UnitedHealth Group. Its annual fee is just 0.09%, costing you $9 annually for every $10,000 you have invested in the fund, and its dividend yield was recently 1.5%.
State Street Utilities Select Sector SPDR ETF
The State Street Utilities Select Sector SPDR ETF (NYSEMKT: XLU) also has a low annual fee -- just 0.08% -- and its dividend yield was recently 2.8%. It's focused on utility-related companies, such as NextEra Energy, Southern Co., and Duke Energy, and it recently held about 31 of them. When the economy flags, people and businesses will still need to keep the lights on.
Vanguard Consumer Staples Index Fund ETF Shares
The Vanguard Consumer Staples Index Fund ETF Shares (NYSEMKT: VDC) specializes in consumer staples companies, recently holding 103 of them, such as Walmart, Procter & Gamble, and Coca-Cola. Its annual fee is 0.09%, and its recent dividend yield 2.1%. Clearly, no matter whether the economy is up or down, gobs of people will want to keep buying shampoo, soda, and items from Walmart.
Schwab U.S. REIT ETF
The Schwab U.S. REIT ETF (NYSEMKT: SCHH) is another defensive ETF, in that it holds many real estate investment trusts (REITs) -- companies that buy properties and lease them out. These are typically multiyear leases, if not multidecade, so that income is likely to keep rolling to the REITS. The ETF's annual fee is just 0.07%, and its recent dividend yield 2.8%. Its recent 117 holdings included Prologis, American Tower, and Realty Income.
Schwab U.S. Dividend Equity ETF
A solid dividend-focused ETF such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is also worth considering. (There are other good dividend ETFs, too, of course.) Why? Because dividend-paying companies tend to be established and profitable, with relatively dependable income. So they're more solid than the average stock. This ETF has an ultra-low annual fee of 0.06% and a recent dividend yield of 3%. Its top holdings (out of 98) recently included Merck, Chevron, and Verizon Communications.
Dividend income is particularly nice during recessions because while some stocks may be stagnating, healthy dividend payers will keep delivering cash to shareholders.
Whether the stock market pulls back this year, next year, or the year after, these ETFs will likely keep growing -- and delivering a little income regularly, too. Take a closer look at any of these funds that intrigue you.
Should you buy stock in Vanguard World Fund - Vanguard Health Care ETF right now?
Before you buy stock in Vanguard World Fund - Vanguard Health Care ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard World Fund - Vanguard Health Care ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 10, 2026.
Selena Maranjian has positions in American Tower, NextEra Energy, Procter & Gamble, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends American Tower, Chevron, Eli Lilly, Merck, NextEra Energy, Prologis, Realty Income, and Walmart. The Motley Fool recommends Duke Energy, Johnson & Johnson, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

These 5 ETFs Are Built for Bear Markets. History Says Now Is a Fantastic Time to Buy.

PPL Corporation PPL is advancing clean-energy initiatives that can strengthen grid reliability and support rising electricity demand. Its growing focus on wind, energy storage and cleaner generation could diversify its energy mix, improve operational flexibility and efficiency.
Recently, PPL’s unit, Rhode Island Energy, conditionally selected 150 megawatts (MW) of renewable energy from Clearway Energy Group’s proposed 800-MW onshore wind project in Aroostook County, Maine. The energy would be procured through a long-term power purchase agreement, subject to contract negotiations and regulatory approval. This would give PPL exposure to additional renewable supply while supporting regional clean-energy goals.
The company is expanding and modernizing its Kentucky generation fleet through natural gas, renewables and other clean-energy technologies. In Kentucky, PPL units Louisville Gas and Electric Company (LG&E) and Kentucky Utilities (KU) are evaluating the 266-MW Lewis Ridge pumped-storage hydro project, which could provide eight hours of energy storage and strengthen grid flexibility. Construction could begin as early as 2027, with commercial operation targeted for 2031.
The utilities are also collaborating with X-energy to explore deploying Xe-100 small modular reactors in Kentucky to meet growing electricity demand with long term, reliable and clean energy
These initiatives complement PPL’s broader $23 billion capital investment program through 2029, supporting an expected 10.3% average annual rate-base growth and 6-8% annual earnings per share growth through 2029.
Overall, these renewable and clean-energy initiatives could strengthen PPL’s long-term growth by supporting infrastructure expansion, enhancing system resilience and creating opportunities to increase its regulated asset base.
Clean-Energy Investments Support Utility Growth
Clean-energy investments support utility growth by expanding renewable generation, modernizing grids and improving system resilience. Continued spending on cleaner power and infrastructure can strengthen capacity, reliability and long-term earnings prospects.
NextEra Energy NEE benefits from expanding clean-energy demand, as Energy Resources added 3.6 gigawatts (GW) of renewables and storage projects, lifting its backlog to approximately 35.1 GW.
AES Corporation AES benefits from clean-energy expansion, with 19,724 gross megawatts of renewable capacity operating across solar, wind, hydro and storage, strengthening its diversified generation portfolio globally.
The Zacks Rundown on PPL
PPL’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.32%, respectively.
Debt to Capital
PPL's debt-to-capital currently stands at 57.46%, lower than the electric power industry’s 61.32%.
PPL’s Stock Price Performance
In the past month, the company’s shares have risen 0.2% against the industry’s 0.5% decline.
PPL’s Zacks Rank
PPL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

Can Clean-Energy Initiatives Support PPL's Long-Term Growth?

Vistra Corp. VST is well positioned to benefit from rising U.S. electricity demand through its integrated retail and power generation platform. The company serves about 5 million retail customers and operates roughly 43,641 megawatts (MW) of generation capacity across natural gas, nuclear, coal, solar and battery storage, providing significant scale and diversification across major competitive power markets. Growth opportunities are also expanding as data centers, artificial intelligence and electrification drive electricity requirements.
Natural gas, coal, nuclear and renewable sources account for approximately 62%, 20%, 15% and 3%, respectively, of Vistra’s generation capacity. This diversified portfolio enhances operational flexibility, while its nuclear and renewable assets position the company to capitalize on rising clean-energy demand.
A key strength is the company’s ability to link generation, retail load and commodity risk management. Its integrated structure allows the company to optimize generation while using hedging strategies to limit exposure to commodity-price fluctuations. This approach can reduce earnings volatility, enhance cash-flow visibility and support competitive products and contracts for residential, commercial and industrial customers.
Vistra continues to pursue large-load offtake opportunities and long-term power agreements that could strengthen base profitability. Its nuclear and natural gas assets provide reliable, dispatchable power, while solar and battery investments broaden its generation mix and improve flexibility as electricity demand rises. Overall, Vistra’s scale, diversified fleet, integrated model and risk-management capabilities support a favorable long-term growth profile.
Diversified Clean Energy Portfolio Supports Utility Growth
Utilities benefit from a diversified clean energy generation portfolio by reducing dependence on any single fuel source, improving grid reliability and managing fuel-price volatility. Investments in renewables, nuclear, natural gas and energy storage can also support rising electricity demand while strengthening long-term earnings visibility.
NextEra Energy NEE and Duke Energy DUK benefit from diversified generation portfolios spanning renewables, nuclear, energy storage and natural gas. This balanced electricity mix helps these utilities to improve grid reliability, reduce dependence on individual fuel sources and manage price volatility, while supporting rising electricity demand and long-term infrastructure-driven earnings growth.
The Zacks Rundown on VST
VST Stock Returns Higher Than Its Industry
Return on equity (“ROE”) is a key indicator of a company’s financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency.
VST’s trailing 12-month ROE is 108.68%, way ahead of its industry average of 11.12%.
VST’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 75.1% and 14%, respectively.
VST’s Stock Price Performance
In the past three months, the company’s shares have risen 3.8% against the industry’s 2.5% decline.
VST’s Zacks Rank
VST currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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

Can VST's Diversified Power Generation Fleet Drive Long-Term Growth?

Key Points
Warren Buffett guided the Berkshire Hathaway holding company to market-beating returns for 60 years.
He regularly said that everyday investors could do well by purchasing an exchange-traded fund that tracks a diversified index like the S&P 500.
In February 2014, Buffett specifically recommended the Vanguard S&P 500 ETF for its low fees and its ability to help young investors secure their financial future.
Warren Buffett is one of the world's most iconic investors. He served as CEO of the Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) holding company from 1965 to 2025, turning it into a $1 trillion conglomerate with numerous subsidiaries, a stock portfolio worth over $350 billion, and another $365 billion in cash.
Berkshire stock returned 19.7% annually during Buffett's 60-year tenure, so an investment of $500 in 1965 would have grown to a whopping $24 million by the end of 2025. But he was a seasoned professional, so he always knew the average investor would struggle to replicate his performance. That's why he consistently advocated exchange-traded funds (ETFs) that track a diversified index, like the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one that Buffett specifically recommended in 2014 for its ultra-low fees. Here's how it could help young investors in their 20s build a financially secure future.
America's best stocks from 11 economic sectors
The S&P 500 is the most widely followed U.S. stock market index for a couple of reasons. First, it's made up of 500 companies from 11 different sectors of the economy, so it's highly diversified. Second, it has very strict entry criteria: its members must maintain a market capitalization of at least $22.7 billion and be profitable. But even after those boxes are ticked, a special committee ultimately decides which companies make the cut.
The S&P is weighted by market capitalization, so the largest companies in the index have a much higher representation than the smallest. Therefore, despite its diversified composition, the information technology sector has a massive weighting of 36.6% because it's home to five companies worth $1 trillion or more (Nvidia, Apple, Microsoft, Broadcom, and Micron Technology).
Below are the 11 sectors that make up the Vanguard S&P 500 ETF, along with their weightings and the three largest companies in each.
S&P 500 Sector
Sector Weighting
Largest Companies
Information technology
36.6%
Nvidia, Apple, Microsoft
Financials
12.5%
Berkshire Hathaway, JPMorgan Chase, Visa
Communication services
9.9%
Alphabet, Meta Platforms, Netflix
Consumer discretionary
9.4%
Amazon, Tesla, Home Depot
Healthcare
9.1%
Eli Lilly, Johnson & Johnson, AbbVie
Industrials
8.7%
Caterpillar, GE Aerospace, RTX Corporation
Consumer staples
4.7%
Walmart, Costco, Coca-Cola
Energy
3.4%
ExxonMobil, Chevron, ConocoPhillips
Utilities
2.1%
NextEra Energy, Constellation Energy, Southern Co
Real estate
1.9%
Welltower, Prologis, Equinix
Materials
1.8%
Linde, Newmont, Freeport-McMoRan
Data source: Vanguard. Sector weightings are accurate as of July 31, 2026, and are subject to change.
The technology sector is exerting a particularly strong influence on the performance of the S&P 500 right now, thanks to the artificial intelligence (AI) revolution, which began to gain momentum when OpenAI's ChatGPT application surpassed 100 million users in early 2023. In fact, if we exclude the sector's contribution over the last three-and-a-half years, the S&P 500's return drops from 101% to just 63%.
Simply put, the Vanguard ETF gives investors exposure to the fastest-growing area of the market in a diversified manner, which is why it's a popular long-term investment option.
Taking Buffett's advice could yield spectacular results
The S&P 500 has returned 10.7% since its inception in 1957 (assuming all dividends were reinvested). But it has delivered an accelerated return of 13.9% since Buffett recommended the Vanguard S&P 500 ETF in 2014, primarily thanks to the tech sector.
Past performance isn't always a reliable indicator of future results, but a 25-year-old investor could build a very nice retirement fund using the Vanguard ETF if its historical returns persist. Below are two potential outcomes.
Starting Balance at Age 25
Compound Annual Return
Balance at Age 65
$20,000
10.7%
$1,166,634
$20,000
13.9%
$3,647,362
Those results don't include costs, but with an expense ratio of just 0.03%, investors would incur an annual fee of just $3 for every $10,000 they have parked in the Vanguard ETF.
To conclude, investors probably shouldn't sell their entire position at retirement age, because compounding yields the greatest benefits over time. With a large enough balance after 40 years, the subsequent annual returns could provide a significant income to fund life after employment.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 8, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Caterpillar, Chevron, Constellation Energy, Costco Wholesale, Eli Lilly, Equinix, GE Aerospace, Home Depot, JPMorgan Chase, Meta Platforms, Micron Technology, Microsoft, Netflix, NextEra Energy, Nvidia, Prologis, RTX, Tesla, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends ConocoPhillips, Johnson & Johnson, and Linde. The Motley Fool has a disclosure policy.

If I Were in My 20s, I'd Buy This Vanguard ETF Warren Buffett Recommended and Hold It Forever

Key Points
The Department of Energy approved a loan of up to $1.9 billion to help NextEra Energy fund the restarting of Iowa's only nuclear plant.
The company and the government touted the 615 megawatts of power the project would provide.
But the real reason for the restart is to provide power for Google's AI data centers being constructed in the region.
Well, that didn't last long.
In 2020, NextEra Energy (NYSE:NEE) couldn't close the Duane Arnold Energy Center (DAEC) nuclear plant fast enough. Although the plant's license wasn't set to expire until 2034, the company cited unfavorable economics and shut down Iowa's only nuclear plant 14 years early.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But now, NextEra is proudly touting a $1.9 billion loan guarantee from the U.S. Department of Energy (DOE) to restart the shuttered plant and bring "reliable, around-the-clock energy to the regional grid."
According to the DOE, "Returning 615 megawatts of reliable baseload generation will drive down electricity costs, while supporting thousands of American jobs."
But the real reason why NextEra reversed course wasn't mentioned in the public statements. Here's why it's happening and what it means for investors.
Image source: Getty Images.
Energy economics haven't changed, but demand has
In 2018, natural gas and wind power had become so cheap and abundant in Iowa that even the DAEC's relatively inexpensive nuclear power couldn't compete in terms of price.
In fact, it was cheaper for the local utility to pay a $110 million fee to break its existing five-year contract with NextEra and get electricity from cheaper sources.
The DAEC – located just northwest of Cedar Rapids, Iowa's second-most-populous city – was producing nearly 10% of the state's electricity. But without a supply contract, NextEra decided to shut it down in October 2020. But then a derecho – a "land hurricane" with 140 mph winds – damaged the plant's cooling towers and forced an emergency shutdown in August 2020. The plant never reopened.
U.S. natural gas prices are just as low today as they were in 2018, and wind power is more abundant than ever in Iowa, generating about 63% of the state's electricity. So what changed?
Demand.
The ongoing AI build-out has been one factor in an unprecedented spike in U.S. electricity demand. Natural gas and wind power are still cheaper to produce than nuclear power. But in the current environment, utilities are being forced to buy electricity at higher prices to meet rising demand.
And demand is about to surge in the Cedar Rapids area for one big reason.
Image source: The Motley Fool.
Google needs power for new AI data centers
Given the amount of backlash being faced by AI data center projects lately, it's no surprise that neither NextEra's press release nor the Department of Energy's accompanying statement mentioned the primary reason NextEra wants to restart the DAEC. It's to provide Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) with power for Google's AI data centers.
In 2025, Google announced a $7 billion investment to increase its data center footprint in Iowa, including the construction of a $576 million data center southwest of Cedar Rapids.
According to recent reports, however, the company is also considering developing up to six additional AI data centers on unincorporated land near the DAEC. It has funded a water usage study to help determine capacity.
So, while the DAEC will provide 615 megawatts of baseload generation, most of those megawatts will likely go directly to Google, which has signed a 25-year agreement to purchase power from the DAEC.
Two of DAEC's former owners, the Central Iowa Power Cooperative (CIPCO) and the Corn Belt Power Cooperative, will sell their combined 30% interest in the DAEC to NextEra, which will then own 100% of the plant. As part of that agreement, CIPCO will be able to buy power from the DAEC on the same contract terms as Google, but only 50 of the 615 megawatts will be set aside for that purpose.
What it means for investors
Although the recent announcements downplayed the AI data center angle, it's not as though NextEra or Google haven't been transparent about the situation.
Google needs to build AI data centers and needs power for them. And in the current regulatory environment, getting approval to restart an existing nuclear plant is easier than getting approval for a new solar or wind project.
With the federal government's loan helping offset the massive cost of restarting the wind-damaged plant, the same nuclear power that was a victim of "unfavorable economics" a few short years ago is now viable. And, of course, Google's plan to build in unincorporated areas will help minimize the chances of the project being derailed by local opposition.
All in all, this is likely a long-term win for NextEra shareholders. But the company probably won't see any benefits anytime soon: the plant isn't scheduled to be fully operational until early 2029. And as the DAEC's history proves, in the world of energy, a lot can change in only a few short years.
Should you buy stock in NextEra Energy right now?
Before you buy stock in NextEra Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
John Bromels has positions in Alphabet and NextEra Energy. The Motley Fool has positions in and recommends Alphabet and NextEra Energy. The Motley Fool has a disclosure policy.

NextEra Just Secured Up to $1.9 Billion to Restart Iowa's Only Nuclear Plant. Here's The Real Reason Why.

(RTTNews) - U.S. power company NextEra Energy Inc. (NEE), announced on Tuesday that it has closed a loan agreement with the Department of Energy or DOE to support the restart of its Duane Arnold Energy Center in Iowa, moving closer to bringing the state's only nuclear facility back online.
The DOE's Office of Energy Dominance Financing approved a loan of up to $1.9 billion to help fund the restart of the 615-megawatt plant in Linn County. NextEra said the project is expected to generate more than $9 billion in economic benefits for Iowa over 25 years, create thousands of jobs during construction and refurbishment, support more than 400 permanent positions once operational, and deliver about $75 million in tax revenue over its lifetime.
The company announced last October that it plans to restart Duane Arnold no later than the first quarter of 2029. The DOE loan marks one of the most significant nuclear restart efforts underway in the United States.
The Duane Arnold plant had been in operation for more than four decades, before closing in 2020. NextEra is pursuing the restart through regulatory, licensing and readiness processes under the oversight of the Nuclear Regulatory Commission and state agencies.
In pre-market activity on the NYSE, shares of NextEra Energy were down 0.25 percent, changing hands at $83.21, after closing Monday's regular session 0.75 percent lower.

NextEra Wins Up To $1.9 Bln Financing From DOE To Revive Iowa Nuclear Facility

Key Points
NextEra's announced acquisition of Dominion Energy is under regulatory scrutiny.
Constellation's stock has dropped 20% despite an optimistic growth trajectory.
Both companies are benefiting from increasing AI-related power demand.
As electricity demand surges amid AI data center growth, two utility companies stand out. NextEra Energy (NYSE: NEE) and Constellation Energy (NASDAQ: CEG) are both incredibly strong businesses, but are taking different approaches to this new chapter in North American power.
NextEra is both a traditional utility provider and a powerhouse in renewable energy. It is planning to spend $94 billion through 2030 in an aggressive push to build out its footprint. In May, the energy giant announced an all-stock agreement to acquire Dominion Energy. This deal will make NextEra the world's largest utility business, but the megamerger is facing intense regulatory scrutiny.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The company's dividend yield is holding strong at over 3%. The stock has risen just 2% this year. NextEra is a reliable income producer, but could see substantial growth through the early 2030s.
Constellation's approach is completely different from NextEra's. Constellation is the largest nuclear power operator in the U.S. It's also an independent power producer, meaning it sells electricity on the open market and not through a regulated utility model. This gives it greater pricing volatility, but potentially more upside.
Constellation is also a favorite among hyperscalers, including Meta Platforms and Microsoft. Its dividend yield is considerably less than NextEra's, but the earnings projections are higher.
Constellation's stock has declined significantly in 2026, falling over 20%. This has created a compelling entry point for investors. Much of the stock's downward trend is due to softer profit guidance and investor nervousness regarding the company's expensive acquisition of Calpine Corporation, which added short-term costs and debt to the balance sheet.
Which stock is better?
The better play right now depends heavily on the investor's risk tolerance. NextEra, with its regulated utility business, offers greater stability and income, thus lower risk. There's still upside potential as it grows its renewables arm, however. Constellation arguably has more growth potential, though, as it's even more closely tied to the AI boom. With that comes more volatility and risk. Both stocks have a lot going for them and serve a different purpose within a portfolio.
Should you buy stock in NextEra Energy right now?
Before you buy stock in NextEra Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!*
Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 3, 2026.
Catie Hogan has positions in NextEra Energy. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, Microsoft, and NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Better Energy Play: NextEra vs. Constellation Energy

The NASDAQ 100 After Hours Indicator is down -33.11 to 29,110.22. The total After hours volume is currently 126,206,478 shares traded.
The following are the most active stocks for the after hours session:
NVIDIA Corporation (NVDA) is -0.41 at $224.00, with 7,962,626 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2026. The consensus EPS forecast is $2.47. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Hewlett Packard Enterprise Company (HPE) is -1.13 at $50.70, with 5,863,165 shares traded. As reported by Zacks, the current mean recommendation for HPE is in the "buy range".
Bausch Health Companies Inc. (BHC) is unchanged at $6.83, with 5,017,170 shares traded. BHC's current last sale is 97.57% of the target price of $7.
Broadcom Inc. (AVGO) is -20.4701 at $346.77, with 2,843,052 shares traded. Smarter Analyst Reports: Broadcom’s Q1 Results Surpass Estimates; Street Says Buy
NextEra Energy, Inc. (NEE) is unchanged at $83.10, with 2,506,204 shares traded. NEE's current last sale is 82.69% of the target price of $100.5.
Snowflake Inc. (SNOW) is +67.66 at $373.50, with 2,156,638 shares traded. Smarter Analyst Reports: Snowflake Drops 22% on Surprise Quarterly Loss & Disappointing Guidance
Rivian Automotive, Inc. (RIVN) is -0.05 at $15.56, with 2,142,718 shares traded. As reported in the last short interest update the days to cover for RIVN is 9.033029; this calculation is based on the average trading volume of the stock.
Albertsons Companies, Inc. (ACI) is -0.055 at $12.48, with 2,141,741 shares traded. ACI's current last sale is 96% of the target price of $13.
Coca-Cola Company (The) (KO) is +0.3349 at $88.57, with 2,118,461 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Walmart Inc. (WMT) is +0.2298 at $106.32, with 2,062,886 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2027. The consensus EPS forecast is $0.84. As reported by Zacks, the current mean recommendation for WMT is in the "buy range".
Applied Digital Corporation (APLD) is -0.1154 at $24.79, with 2,060,534 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
Ultragenyx Pharmaceutical Inc. (RARE) is -12.53 at $14.00, with 2,046,801 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $-0.63. As reported in the last short interest update the days to cover for RARE is 7.77841; this calculation is based on the average trading volume of the stock.

After Hours Most Active for Sep 2, 2026 : NVDA, HPE, BHC, AVGO, NEE, SNOW, RIVN, ACI, KO, WMT, APLD, RARE

Investors in NextEra Energy Inc (Symbol: NEE) saw new options begin trading today, for the November 20th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 79 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NEE options chain for the new November 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $80.00 strike price has a current bid of $1.61. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $80.00, but will also collect the premium, putting the cost basis of the shares at $78.39 (before broker commissions). To an investor already interested in purchasing shares of NEE, that could represent an attractive alternative to paying $82.79/share today.
Because the $80.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.01% return on the cash commitment, or 9.29% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for NextEra Energy Inc, and highlighting in green where the $80.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $87.50 strike price has a current bid of $1.48. If an investor was to purchase shares of NEE stock at the current price level of $82.79/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $87.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.48% if the stock gets called away at the November 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if NEE shares really soar, which is why looking at the trailing twelve month trading history for NextEra Energy Inc, as well as studying the business fundamentals becomes important. Below is a chart showing NEE's trailing twelve month trading history, with the $87.50 strike highlighted in red:
Considering the fact that the $87.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 68%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.79% boost of extra return to the investor, or 8.26% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 24%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $82.79) to be 21%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Further NEE Research:

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	NEE	Industry	NEE	Industry	Volume, $
Yesterday 82.2 - 83.3	-0.91	0.57	6.84	1.94	606.49M
Week 82.2 - 84.4	-1.50	0.65	2.59	2.30	2.73B
Month 80.8 - 87.5	-3.86	1.88	7.21	3.90	12.19B
3 Months 80.8 - 91.0	-3.22	0.78	11.12	7.11	38.33B
6 Months 80.8 - 98.8	-11.09	2.46	14.55	15.32	78.28B
Year 69.4 - 98.8	15.87	1.74	21.10	22.68	146.33B
3 years 47.1 - 98.8	21.45	21.36	47.07	37.82	397.59B
5 years 47.1 - 98.8	-4.01	34.06	60.03	56.04	604.42B
All time 4.5 - 93.7	1,078.37	57.55	—	—	501.12B

NextEra Energy, Inc.

Price and volatility history

Risk ratios