Why NextEra Energy Stock Could Rally After April Fall
NextEra Energy (NYSE: NEE) stock lost 16.2% in the month of April, or nearly twice the S&P 500's fall, according to data provided by S&P Global Market Intelligence. The biggest drop in the stock price came after NextEra Energy warned about a potential delay in solar projects thanks to a probe by the U.S. government.
Selling pressure on NextEra Energy started to build early in the year as investors fled clean energy stocks in anticipation of rising interest rates at a time when higher input costs and supply bottlenecks were already hurting the industry. So when management warned about project delays last month, some market participants were quick to sell shares in NextEra Energy.
During its first-quarter earnings call on April 21, NextEra Energy's CEO John Ketchum blasted the U.S. government for its recently announced probe on the import of solar panels that could result in hefty retrospective tariffs on solar panels imported from four Southeast Asian countries. This could be a huge blow to companies already battling higher fuel costs. Ketchum also elucidated how the investigation could even ironically force U.S. companies to buy solar panels from China where tariffs are known, unlike in the U.S. where tariffs wouldn't be known for a couple of years under the ongoing probe.
Source Fool.com