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Constellation Energy stock is still rising after the power company's landmark announcement last week that it plans to restart the Three Mile Island nuclear plant in Pennsylvania. The operational risk to bring the plant back online in 2028 appears manageable, Morgan Stanley told clients in a note on Monday. Renewable energy and natural gas stocks could also indirectly benefit from nuclear deals, according to Morgan Stanley analyst Stephen Byrd. Renewable stocks such as AES Corp. , NextEra Energy and First Solar could get a tailwind for the same reason, according to Morgan Stanley. CEO John Ketchum said the company is looking at restarting the Duane Arnold nuclear plant in Iowa.
Persons: Morgan Stanley, David Arcaro, Arcaro, Stephen Byrd, Byrd, NextEra, John Ketchum, Duane Arnold, Wells, Neil Kalton, — CNBC's Michael Bloom Organizations: Constellation Energy, Constellation, Microsoft, Vistra Corp, Vistra, Public Service Enterprise Group, Tech, . Companies, GE Vernova, Siemens Energy, Mitsubishi Power, NRG Energy, AES Corp, NextEra Energy Locations: Pennsylvania, Iowa, Wells Fargo
Constellation Energy plans to restart the Three Mile Island nuclear plant , with operations slated to resume in 2028 subject to approval by the Nuclear Regulatory Commission. It demonstrates the growing financial opportunity that nuclear power represents for utilities and their investors. VST YTD mountain Vistra shares, YTD The power company, headquartered outside Dallas, is viewed as one of the lead contenders to ink a data center nuclear deal next. "Vistra's timely acquisition of nuclear portfolio Energy Harbor in 2023 gives the company a coveted nuclear portfolio," the analysts said. Burke specifically called out Comanche Peak, a twin reactor nuclear plant with 2.4 gigawatts of capacity outside Forth Worth, Texas.
Persons: Vistra, Shahriar Pourreza, Jefferies, Julien Dumoulin, Smith, Jim Burke, Burke, John Ketchum, Duane Arnold, Ketchum, NextEra, Robert Blue Organizations: U.S, Constellation Energy, Nuclear Regulatory Commission, Microsoft, Vistra Corp, Nvidia, Energy, Guggenheim Securities, Wall Street, Jefferies, NextEra Energy, Dominion Energy, Dominion Locations: Dallas, Ohio, Pennsylvania, Energy Harbor, Forth Worth , Texas, Iowa, FactSet, Waterford , Connecticut
In this photo illustration the stock market information of NextEra Energy, Inc. seen displayed on a smartphone with NextEra Energy, Inc. logo in the background. Igor Goloniov | LightRocket | Getty ImagesRenewable energy demand will triple over the next seven years as data center growth accelerates to facility the proliferation of artificial intelligence, the NextEra Energy CEO said Wednesday. Of those, 860 megawatts — or 28% — of which comes from agreements with Google to power the tech company's data centers. "These results support our belief that the bulk of the growth demand will be met by a combination of renewables and battery storage." Rebecca Kujawa, CEO of NextEra Energy Resources, a subsidiary NextEra Energy, said it will take time to nail down concrete numbers on exactly how much demand is coming from data centers in particular.
Persons: Igor Goloniov, NextEra, John Ketchum, Brian, Ketchum, Rebecca Kujawa, Kujawa Organizations: NextEra Energy, Inc, LightRocket, Getty, Google, U.S, Consulting, Rystad Energy, NextEra Energy Resources Locations: U.S, Turkey
NextEra Energy is considering restarting a nuclear plant in Iowa as demand for carbon-free energy grows amid a historic surge in electricity consumption. The Duane Arnold Energy Center in Palo, Iowa ceased operations in 2020 after 45 years of service. "There would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold," Ketchum said on NextEra's second-quarter earnings call Wednesday. The Duane Arnold plant was scheduled for retirement in late 2020 after a key customer, Alliant Energy, sought cheaper energy alternatives. Nuclear energy fell out of favor over the past decade as plants struggled to compete with cheaper energy sources such as natural gas and renewables.
Persons: Duane Arnold, John Ketchum, Ketchum Organizations: NextEra Energy, Duane Arnold Energy Center, Alliant Energy, Congressional Research Service Locations: Iowa, Palo , Iowa, Japan, U.S
NextEra Energy stock fell nearly 5% in early trading Tuesday after announcing a plan to sell $2 billion in equity units to finance power projects as electricity demand rises and to pay back debt. The Florida-based power company, which operates the largest portfolio of renewable energy in the U.S., will issue equity units for $50, which will serve as a contract to purchase shares no later than June 1, 2027. The utility sector has gained about 8.5% over the past three months, outpacing the 6.2% gain by the S&P 500. But the utility space has cooled off over the past month, with NextEra falling 5% over that period. About 71% of Wall Street analysts rate NextEra as the equivalent of buy, while 24% have put a hold on the stock and 4.8% have recommended that investors sell.
Persons: NextEra, Goldman Sachs, Goldman, Carly Davenport Organizations: Energy, Energy Capital Holdings, UBS, Wall Street Locations: Florida, U.S
In a Thursday note, analyst Josh Silverstein listed the firm's "most compelling" buy-rated stocks to own across the energy and utilities sectors, including Suncor Energy , Coterra Energy , SLB , NextEra Energy and First Solar . Energy and utilities sectors are faring well this year, gaining 12.5% and 8.9%, respectively, while the broader market has advanced about 9.3%. His $90 price target suggests shares could jump 15.1%. First Solar is another favorite of UBS, which assigned the stock a $350 price target that implies 26.5% upside. Other energy and utility favorites UBS named include Coterra and Suncor Energy .
Persons: Josh Silverstein, William Appicelli, Jon Windham, , SLB Organizations: UBS, Suncor Energy, Coterra Energy, NextEra Energy, . Energy, Big Tech Locations: Schlumberger
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNextera's sell off provides an attractive valuation for investors, says Rockland's Karl FarmerKarl Farmer, Rockland Trust VP, joins 'Power Lunch' to discuss Nvidia, the healthcare sector and the Fed.
Persons: Rockland's Karl Farmer Karl Farmer Organizations: Rockland Trust, Nvidia
The names we found also have a consensus price target that calls for further appreciation of 20% or more from here on out. Discovery has the biggest potential upside — 55% — on the screen, looking at its consensus price target among analysts. Not only has the dominant e-commerce platform gained more than 66% this year—it also stands to rise anogther 24.4% based on the Street's consensus price target. Another Wall Street favorite is NextEra Energy , which has potential upside of more than 26%. Other companies leading the market's comeback are packaging company Sealed Air , discount retailer Dollar Tree and newspaper publisher News Corp .
Persons: Stocks, Wells Fargo, Wells, Steven Cahall, Brent Thill, , Terrell Kirk Crews Organizations: Nasdaq, Dow Jones, CNBC, Warner Bros, Discovery, Jefferies, UBS, Amazon Web Services, American, International, NextEra Energy, News Corp Locations: Florida
Cramer's Lightning Round: Upstart is 'a little too risky'
  + stars: | 2023-10-04 | by ( Julie Coleman | ) www.cnbc.com   time to read: +1 min
Stock Chart Icon Stock chart icon Upstart's year-to-date stock performance. Upstart : "It's a little too risky for me, it's losing money. Stock Chart Icon Stock chart icon Altria's year-to-date stock performance. Stock Chart Icon Stock chart icon SoFi's year-to-date stock performance. Stock Chart Icon Stock chart icon Nextera's year-to-date stock performance.
Persons: it's, I've Locations: Noto
Utility stocks are getting pummeled to a historic degree as interest rates rise to their highest level in more than a decade, according to technical indicators. XLU 1M mountain Utilities stocks have fallen sharply in recent weeks as interest rates have climbed. "The interest rate regime, I certainly think that's what has caused this latest sell-off. Rising interest rates are a double whammy for utility stocks. "Based on our valuation regression model, which accounts for both interest rates and growth among other factors, utilities still screen ~9% overvalued ...
Persons: Jason Goepfert, SentimenTrader, Chris Verrone, I'm, Goepfert, It's, They're, Josh Brown, NextEra's, Brown, Ross Fowler, — CNBC's Michael Bloom Organizations: Federal, CNBC, Wealth, NextEra Partners, NextEra Energy, UBS
America’s largest renewable power company is among several U.S. energy and utility companies, including Exxon and Southern Company, that continue to promote big, concentrated bets on company stock in worker retirement plans. Nearly 50% of the investments in NextEra’s employee-funded 401(k) retirement plan are in company stock, the highest among all 30 companies in the S&P 500 Utilities Sector (.SPLRCU). NextEra declined to comment on its use of company stock in employee 401(k) plans. "If we saw a concentration of more than 20% in a single company stock, we would definitely tell them it's a big risk." `Keith Rasmussen, a retired geologist, said he still feels the financial repercussions of holding big bets on company stock in his retirement plans.
Persons: Robert Knoche, Yoon, NextEra, , Alicia Munnell, Kristin McKenna, McKenna, Ryan Frazier, Keith Rasmussen, jolt, Rasmussen, , ” Rasmussen, Richard Valdmanis, Anna Driver Organizations: REUTERS, Exxon, Southern Company, Corporate America, Enron, Utilities, Vanguard Group, Center for Retirement Research, Boston College, Employees, Silicon Valley Bank, Darrow Wealth Management, SEC, Corporations, U.S . Securities, Exchange Commission, Southern Co, Dominion Energy Inc, Dominion, Chesapeake Energy Corp, Thomson Locations: Douglas County , Kansas, U.S, Silicon, Boston, Atlanta , Georgia
Goldman Sachs and Bank of America named an assortment of companies this week that they say have upside in the weeks ahead. NextEra Energy Buy the dip in shares of the renewable energy company, Goldman analyst Carley Davenport says. Endeavor Group Bank of America analyst Jessica Reif Ehrlich said earlier this week that shares of the media company offer "striking value." Endeavor Group- Bank of America, buy rating "An entourage of highly attractive assets. ... .We continue to believe that valuation is attractive..." H World Group Limited- Bank of America, buy rating "Shares weak despite solid results = attractive opportunity.
Persons: Goldman Sachs, Goldman, Carley Davenport, Davenport, she's, Jessica Reif Ehrlich, Reif Ehrlich, BofA, Neil Mehta, Mehta Organizations: Bank of America, CNBC, Marathon Petroleum, Endeavor, H, NextEra, Florida, Endeavor Group Bank of America, WWE, UFC, Media, Entertainment, MPC, Petroleum, ~$ Locations: China
Jan 25 (Reuters) - NextEra Energy Inc (NEE.N) on Wednesday posted mixed quarterly results, sending its shares sliding as the renewable power company announced the retirement of the head of its key Florida utility unit. NextEra's shares dropped 6% on Wednesday, making the company one of the day's biggest losers in the Standard & Poor's 500 Index. The company is the third-largest U.S. energy company by market value, trailing only oil and gas giants Exxon Mobil (XOM.N) and Chevron Corp (CVX.N). NextEra is banking on increased use of renewable energy like solar and wind for power generation amid a global push to shift to cleaner fuel sources. Natural gas prices averaged $6.10 per million British thermal units (mmBtu) in the October-December quarter, about 26% higher than the previous year.
Investors looking for stocks to ride out a recession may want to consider NextEra Energy and cyber security firm Fortinet , according to one fund manager. The remaining 40% of revenues come from its NextEra Energy Partners subsidiary, one of the biggest wind and solar generators in the United States. When asked by CNBC's Mandy Drury to name recession-proof stocks, Masters said NextEra Energy fit the bill. The fund manager said Fortinet would likely see revenue growth this year despite a global recession as companies fear being hacked amid an increase in online crime. Masters manages the Alphinity Global Equity Fund, which outperformed the MSCI World Index last year.
The companies are rated buy by at least 70% of the analysts covering them. Cabot, which yields 2.1%, has nearly 22% upside to the average price target. First Merchants, along with its 3.1% yield, has nearly 18% upside to its consensus price target. Of all names on the list, Broadcom has the highest dividend yield, at 3.2%. Lastly, payments company Visa has an 0.8% dividend yield and 12% upside, based on the consensus price target.
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