NextEra Energy stock eyes a key breakout after robust Q2 results

NextEra Energy Partners LP (NYSE:NEP) closed up 4.99% on Friday. That was after swinging into Q2 earnings of $2.61 per share, from a loss of $0.96 per share last year. The earnings were boosted by a 43% jump in revenue to $362 million in the quarter. The revenue surpassed estimates of $345.1 million.

NextEra earnings distribution also remains healthy. The company announced a quarterly dividend of $0.7625 per share. The dividend was an increase from $0.7325 per share in the prior quarter. The company expects a 12% to 15% annual distribution growth through 2025. The earnings reflect reaps from the company’s renewable energy sector.


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The company’s quarterly results and earnings distribution are an indication of sustainability. The prospects have not gone unnoticed. Before the earnings, on June 17, RBC Capital Markets initiated an outperform rating. The analysts raised the price target from $86 to $89. That represents an upside potential of 16% from the current stock price of $77.We believe it is a matter of days before NextEra stock hits the level (s).

NextEra stock is on the verge of breakout at key resistance

Source – TradingView

Technically, NextEra stock is bullish at the resistance zone. The MACD indicators are in the bull zone, despite the line remaining below the moving average. The stock has been trading along an ascending triangle since May. A breakout is imminent at $77 as the quarter results add a bullish impetus. 

If NextEra stock closes above the resistance, that triggers a buy signal. We believe the stock could rise to $89 but could face a potential resistance at $83.

Summary

NextEra stock is about to break past the $77 resistance. Investors should buy a breakout and ride to $83 or potentially $89.

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Source: https://invezz.com/news/2022/07/23/nextera-energy-stock-eyes-a-key-breakout-after-robust-q2-results/