NextEra Energy, Inc.

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Somewhat Bearish -45

The Worst-Performing Stocks of 2023 (2026) - faurit.com

AI-generated analysis

📉 NextEra Energy (NEE) fell 25.1% in 2023, ranking as one of the worst-performing stocks among U.S.-listed firms covered by Morningstar analysts.

⚠️ Market confidence in NEE's management has declined following an announcement that its partially owned subsidiary, NextEra Energy Partners, is cutting growth expectations.

🏛️ Regulatory uncertainty in Florida remains a significant risk for NEE until the company resolves its upcoming rate case determining rates effective January 2026.

📊 The broader utilities sector suffered poor returns in 2023, with the Morningstar US Utilities Index dropping 7% due to high interest rates and decreased demand.

🔋 Clean energy stocks including NEE were pummeled by a combination of high interest rates, supply chain issues, and reduced market demand throughout the year.

Risk Factors
  • NextEra Energy (NEE) fell 25.1% in 2023, ranking among the worst-performing stocks in the U.S. utilities sector.
  • Market confidence in NEE's management has eroded after its subsidiary, NextEra Energy Partners, cut growth expectations.
  • Ongoing concerns about the regulatory environment in Florida persist until the company resolves its upcoming rate case effective January 2026.
  • The broader clean energy sector faced headwinds from high interest rates and decreased demand, contributing to NEE's poor performance.
Full Analysis
According to Morningstar analysts, NextEra Energy (NEE) was among the worst-performing stocks in the U.S. utilities sector during 2023, falling 25.1%. The article notes that utilities as a whole posted the poorest returns of any sector, with the Morningstar US Utilities Index dropping 7% by late December. Morningstar equity strategist Andrew Bischoff highlighted specific concerns regarding NEE's partially owned subsidiary, NextEra Energy Partners, which recently cut its growth expectations. This development has led to a loss of market confidence in management's ability to hit growth targets for the parent company. The article further identifies regulatory uncertainty as a key headwind for NEE, specifically citing ongoing concerns about the regulatory environment in Florida. Analysts believe these concerns will persist until the company resolves its upcoming rate case, which is scheduled to determine effective rates starting in January 2026. Despite these challenges, the broader context of the article contrasts NEE's performance with other worst-performing names like ChargePoint and SunPower, while also mentioning that utilities generally faced headwinds from high interest rates and decreased demand for clean energy assets.