First Solar and Renewable Energy Stocks Surge, But Their Future Outlook Varies.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Source: Barron's
Market Reaction: Recent developments in renewable-energy stocks indicate that negative news can still lead to positive market reactions if the outcomes are not as severe as anticipated.
Investor Sentiment: Investors appear to be reassured by the latest updates, suggesting a resilience in the renewable energy sector despite challenges.
Stock Performance: The performance of renewable-energy stocks reflects a complex relationship between expectations and actual news, highlighting the market's ability to adapt.
Future Outlook: The situation underscores the importance of monitoring market trends and investor psychology in the renewable energy industry moving forward.
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEE is 92.50 USD with a low forecast of 84.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 89.470
Low
84.00
Averages
92.50
High
100.00
Current: 89.470
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: NextEra Energy's stock rose 0.3% on Friday, reflecting a cautious optimism in the market despite a lukewarm response to its earnings report, with a 52-week high of $90.99 indicating potential resistance levels.
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- Stable Financial Performance: NextEra's subsidiary, Florida Power & Light Company, reported over $5 billion in revenue for 2025, an 11% increase year-over-year, indicating that its dual business model in regulated utilities and renewables lays a solid foundation for future growth.
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- Renewable Energy Leader: NextEra Energy achieved over 8% growth in adjusted earnings per share in 2025 and brought 8.7 gigawatts of new generation and storage projects online last year, showcasing its strong growth potential in renewable energy, with expectations of over 8% annual earnings growth through 2035.
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- Data Center Demand Growth: Xcel Energy stated that the agreement will allow it to increase the data center demand it can serve through the 2030s, reflecting a positive outlook on future market potential and further solidifying its position in the energy market.
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- Stock Sale Announcement: NextEra Energy officer Ketchum John plans to sell 99,603 shares of its common stock on February 9.
- Market Value: The total market value of the shares to be sold is approximately $8.9 million.
See More
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- Overbought Signals: As of February 9, 2026, three stocks in the utilities sector, namely Clearway Energy, Brookfield Infrastructure, and NextEra Energy, have Relative Strength Index (RSI) values exceeding 70, indicating potential overbought risks that could negatively impact investors' short-term trading decisions.
- NextEra Energy Performance: NextEra Energy reported mixed quarterly results on January 27, and despite a 13% stock price increase over the past month, its RSI value of 70.3 suggests a possible price correction risk, closing at $89.47.
- Market Reaction: NextEra Energy's stock rose 0.3% on Friday, reflecting a cautious optimism in the market despite a lukewarm response to its earnings report, with a 52-week high of $90.99 indicating potential resistance levels.
- Investor Caution: With rising RSI indicators, investors should remain vigilant regarding these utility stocks, especially in a volatile market, as overbought conditions may lead to short-term price adjustments.
See More
NextEra Energy Positioned for Growth in AI Era
- Surging Power Demand: As electricity demand from artificial intelligence continues to rise, NextEra Energy is poised to benefit significantly over the coming years, particularly with the expansion of AI infrastructure projects.
- Stable Financial Performance: NextEra's subsidiary, Florida Power & Light Company, reported over $5 billion in revenue for 2025, an 11% increase year-over-year, indicating that its dual business model in regulated utilities and renewables lays a solid foundation for future growth.
- Strategic Partnership: The collaboration with Alphabet's Google Cloud is set to accelerate NextEra's go-to-market strategy in AI solutions, aiming to modernize the energy sector and enhance the company's competitive edge and innovation capabilities.
- Dividend Growth Potential: With a current annual dividend of $2.26 per share expected to increase by 10%, NextEra not only reduces investment risk but also provides stable returns for investors, further enhancing its appeal in the utility sector.
See More
Utility Stocks Poised for Strong Growth Amid AI Demand
- Utility Index Performance: The Vanguard Utilities Index Fund ETF has risen over 11% in the past 12 months, indicating strong returns for this typically sleepy sector, reflecting sustained growth in power demand.
- NextEra Energy Growth Potential: NextEra Energy's adjusted earnings per share grew over 8% last year, with 8.7 gigawatts of new generation and storage projects, and it expects to grow earnings per share at over 8% annually through 2035, supporting its plans to increase dividends in the coming years.
- Dominion Energy Investment Plans: Dominion Energy is collaborating with data centers and plans to invest $50 billion between 2025 and 2029 to support power demand, particularly in Virginia, where power demand surged 30% last year and is expected to continue growing.
- Dual Return Potential: NextEra and Dominion are expected to be the biggest beneficiaries of the AI power surge, and combined with their dividends, this will drive strong shareholder returns, making them top utility stocks to buy this month.
See More
AI Data Centers Drive Surge in Power Demand
- Surge in Power Demand: Power demand in Virginia surged by 30% due to the rise of AI data centers, prompting Dominion Energy to plan a $50 billion investment from 2025 to 2029 to support its utility operations and maintain its leadership in this rapidly growing market.
- Renewable Energy Leader: NextEra Energy achieved over 8% growth in adjusted earnings per share in 2025 and brought 8.7 gigawatts of new generation and storage projects online last year, showcasing its strong growth potential in renewable energy, with expectations of over 8% annual earnings growth through 2035.
- Major Investment Projects: Dominion's Coastal Virginia Offshore Wind project is expected to deliver nearly 3 gigawatts of power, with 50% funding from partner Stonepeak, and is on track for full completion in 2027, further driving its earnings growth.
- Shareholder Return Potential: With dividend yields of 2.5% for NextEra Energy and over 4% for Dominion Energy, combined with robust earnings growth, both companies are expected to deliver double-digit annual returns, making them top utility stocks to buy this month.
See More
NextEra Energy and Xcel Energy Sign MOU to Enhance Resource Delivery
- MOU Signing: NextEra Energy signed a memorandum of understanding with Xcel Energy to accelerate the delivery of generation resources for large load customers, including data centers, resulting in a 1.4% stock price increase on Wednesday, reaching its highest level in over three years.
- Resource Delivery Enhancement: The companies expect improved collaboration on generation, storage, and transmission investments will enable them to better anticipate system needs and quickly assess where large customer demand intersects with available grid and power assets, enhancing market responsiveness.
- Data Center Demand Growth: Xcel Energy stated that the agreement will allow it to increase the data center demand it can serve through the 2030s, reflecting a positive outlook on future market potential and further solidifying its position in the energy market.
- Formal Agreement Upcoming: Key commercial terms have been agreed upon in the MOU, with a formal joint development agreement expected to be executed in the coming months, marking a significant step in the deepening collaboration between the two companies in the energy sector.
See More
