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4 Reasons to Add NextEra Energy Partners to Your Portfolio

4 Reasons to Add NextEra Energy Partners to Your Portfolio
NextEra Energy Partners (NEP) is a very promising stock to add to your portfolio right now, courtesy of four factors.

Estimates for NextEra Energy Partners NEP have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 73.1% and 5.7% north to $2.96 and $2.22, respectively.

Units of the partnership have rallied nearly 18.7% over the past six months compared with its industry’s rally of 10.3%. NextEra Energy Partners is a growth-oriented limited partnership formed by NextEra Energy, Inc. NEE to acquire, manage and own contracted clean energy projects with stable long-term cash.



Let’s delve deeper into the factors that make it a good investment option at the moment.
 
Growth Projections: The Zacks Consensus Estimate for 2018 earnings per unit is pegged at $2.96, reflecting a year-over-year improvement of 348.5%. Its long-term earnings growth rate is pegged at 9%.

The Zacks Consensus Estimate for 2018 revenues is pegged at $1.04 billion, reflecting a year-over-year improvement of 38.1%.

Investment in Domestic Renewable Assets: The partnership sold its Canadian portfolio of wind and solar assets to enjoy the domestic benefit of lower effective corporate tax rate and longer tax shield than Canada.

NextEra Energy Partners announced that it has entered into an agreement with NextEra Energy Resources to acquire renewable assets situated in eight states across the nation. The 11 wind and solar projects will collectively produce nearly 1,388 megawatts (MW) and expand the green power capacity beyond 5,200 MW.

Financial Flexibility & Well-Placed Assets: The financial flexibility of the partnership will allow it to fund its long-term growth projects without selling common units till 2020.

NextEra Energy Partners is well poised to gain from its pipeline assets in Texas. Moreover, we expect improving demand for natural gas to create more opportunities for this partnership, further expanding its pipeline operation in North America.

VGM Score: The stock has a favorable VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with an impressive VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.

Zacks Rank & Other Key Picks

NextEra Energy Partners currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other top-ranked stocks from the same sector are Ecopetrol S.A. EC and Petróleo Brasileiro S.A. or Petrobras PBR, each sporting a Zacks Rank #1 and a VGM Score of A.

The Zacks Consensus Estimate for 2018 earnings for Ecopetrol and Petrobras has moved up 16.2% and 7.9% in the past 60 days.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
 
Ecopetrol S.A. (EC) : Free Stock Analysis Report
 
NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
 
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Zacks Investment Research