WSJ Stock Tip: Watch For Florida Power & Light Shares to Soar

A Wall Street Journal stock picker likes the prospects at Florida Power & Light.

Calling utility companies "energized" for growth generally, Reshma Kapadia noted that FPL (NextEra Energy, NEE) is currently trading at 12 times next year's expected earnings, "among the cheapest stocks in the sector."

"The company is one of the largest generators of wind and solar power in North America," Kapadia reports. "Analysts expect the company to generate 5 percent to 7 percent profit growth in the coming years. NextEra pays out just 43 percent of its earnings as dividends now, which leaves room for future dividend hikes."

Though FPL tabled billions of dollars in capital projects after the Public Service Commission denied a rate-hike request earlier this year, the utility stands to gain from any renewable-energy bills passed by the Legislature.