Stock Price Trends

Nextera Energy Inc (NEE)

NextEra Energy, Inc. is an American energy company with about 46 gigawatts of generating capacity, revenues of over $17 billion in 2017, and about 14,000 employees throughout the US and Canada. Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources, NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 61.13% per annum.
  • NEE price at the close of November 20, 2024 was $76.88 and was lower than the bottom border of the primary price channel by $1.67 (2.12%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 47.04% per annum.
  • NEE price at the close of November 20, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of NEE price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: September 28, 2023
End date: October 31, 2024

a = 2.0861

b = 0.0013

s = 0.0544

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 61.13%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0544) – 1
= 24.33%

September 28, 2023 calculations

Top border of price channel:

Exp(Y968)
= Exp(a + b × X968 + 2 × s)
= Exp(a + b × 1,407 + 2 × s)
= Exp(2.0861 + 0.0013 × 1,407 + 2 × 0.0544)
= Exp(4.0338)
= $56.48

Bottom border of price channel:

Exp(Y968)
= Exp(a + b × X968 – 2 × s)
= Exp(a + b × 1,407 – 2 × s)
= Exp(2.0861 + 0.0013 × 1,407 – 2 × 0.0544)
= Exp(3.8161)
= $45.43

October 31, 2024 calculations

Top border of price channel:

Exp(Y1,243)
= Exp(a + b × X1,243 + 2 × s)
= Exp(a + b × 1,806 + 2 × s)
= Exp(2.0861 + 0.0013 × 1,806 + 2 × 0.0544)
= Exp(4.5553)
= $95.14

Bottom border of price channel:

Exp(Y1,243)
= Exp(a + b × X1,243 – 2 × s)
= Exp(a + b × 1,806 – 2 × s)
= Exp(2.0861 + 0.0013 × 1,806 – 2 × 0.0544)
= Exp(4.3376)
= $76.52

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 61.13% per annum.
  • NEE price at the close of November 20, 2024 was $76.88 and was lower than the bottom border of the primary price channel by $1.67 (2.12%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 11, 2024
End date: November 20, 2024

a = 7.5154

b = -0.0017

s = 0.0261

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0017) – 1
= -47.04%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0261) – 1
= 11.01%

September 11, 2024 calculations

Top border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 + 2 × s)
= Exp(a + b × 1,756 + 2 × s)
= Exp(7.5154 + -0.0017 × 1,756 + 2 × 0.0261)
= Exp(4.5096)
= $90.89

Bottom border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 – 2 × s)
= Exp(a + b × 1,756 – 2 × s)
= Exp(7.5154 + -0.0017 × 1,756 – 2 × 0.0261)
= Exp(4.4052)
= $81.88

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(7.5154 + -0.0017 × 1,826 + 2 × 0.0261)
= Exp(4.3877)
= $80.46

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.5154 + -0.0017 × 1,826 – 2 × 0.0261)
= Exp(4.2833)
= $72.48

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 47.04% per annum.
  • NEE price at the close of November 20, 2024 was inside the secondary price channel.