NextEra is a large American energy company with revenues exceeding $18 billion in 2020. If the US is heading towards a recession then typically utility companies, like NextEra energy should find buyers.
This is because even when consumers spending power is eroded utility bills are still paid. As a result there can be a pivot from tech stocks into utility stocks if a US recession emerges. So, does this make sense to take advantage to NextEra’s strong seasonal pattern?
Over the last 20 years from September 27 through to November 15 NextEra has gained 14 out of 20 times for an average gain of 2.14% and a maximum gain in 2006 of 14.97%. So, if the US is heading towards an early 2024 recession is NextEra energy worth checking out as a utility stock?
Major Trade Risks:
The major trade risks here is that previous seasonal patterns do not necessarily repeat themselves each year.
Remember don’t just trade it, Seasonax it!