This Utility Stock Beat the S&P 500 in the First Half of 2024. Is It Still a Buy?

The utility sector is not exactly known for being a hot performer, but that didn't stop NextEra Energy (NYSE: NEE) from beating the S&P 500 index in the first six months of 2024. This impressive showing, however, needs to be taken with a grain of salt. Yes, NextEra Energy is a well-run utility with a fast-growing business. But it should only be bought by a certain type of investor.

In the first six months of 2024, NextEra Energy's stock price gained roughly 16.5%. By comparison, the S&P 500 rose a slightly less impressive 14.5%. And the Utilities Select Sector SPDR ETF (NYSEMKT: XLU) climbed just 7.5% or so. Clearly, NextEra Energy was a standout, including within the utility sector, which is important to take note of. It means that there was likely something more going on than a rising tide lifting all boats.