Top Stock to Buy #5 — NextEra Energy (NEE)
Formerly FPL Group, NextEra Energy (NYSE:NEE) is the holding company for Florida Power & Light and NextEra Energy Resources. NextEra should grow and reflect a recovery in Florida’s economy and housing market. The company’s ambitious investment plans include wind and solar development.
Earnings are estimated at $4.54 for 2012 and $4.95 for 2013. The stock has a dividend yield of 3.5%, and analysts’ targets average $76.
Technically the stock has fallen through its 50-day moving average but should find support at around $65 — a Fibonacci 61.8% decline from the breakout in March. NEE appears to be a solid investment with above-average growth potential and a solid plan for expansion. Our 12-month target is $75.