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NextEra Energy Might Be Overbought, But Not Overvalued

The recent run-up in NextEra has the stock at an overbought level.

However, the stock is not overvalued on an EV/EBITDA basis.

NextEra is still likely to achieve better than average growth for a utility company.

Some investors who have NextEra (NYSE:NEE) on their watch list of stocks to buy may be scared away temporarily because of the recent run-up in price. NextEra's stock gained an impressive 25% year-to-date. While this move has the stock at a temporary overbought level, the company is not overvalued.

I compared NextEra to other utility companies with similar market caps. NextEra has outperformed all of them over the...