Trump Administration's Solar Policy Shift Boosts Nextracker Stock to 80-Plus RS Rating

Nextracker stock surged 11% after the Trump administration's planned cuts to clean energy tax credits were revealed to be less severe. The company's RS rating jumped 11 points to 89, ranking it No. 1 among solar stocks. The news eased concerns about the impact of the administration's policy on the solar industry.

Nextracker Inc. (NXT) stock surged 11% on Monday afternoon following the revelation that the Trump administration's planned cuts to clean energy tax credits would not be as severe as initially feared. The company's Relative Strength (RS) Rating jumped 11 points to 89, ranking it No. 1 among solar stocks. This news significantly eased concerns about the impact of the administration's policy on the solar industry.

The Trump administration's new clean energy tax guidance, released on Friday, dealt a fresh blow to many wind and solar companies already reeling from the enactment of the Republican tax-and-spending bill. The guidance no longer allows projects that incur 5% of their costs to be considered under construction, a move that could make it difficult for many developers to receive federal support. However, the guidance also requires companies to meet the new standards within two weeks, angering industry advocates. The move is part of an unprecedented side deal the administration made with anti-clean energy ideologues to undermine Congress.

The new guidance, however, is not as restrictive as some had expected. It will allow many projects to receive credits through the end of the decade and is not retroactive. The guidance largely leaves intact another standard where companies prove they commenced construction by doing "physical work of a significant nature" on projects. Once a project is under construction, it also will still have four years to come online while receiving credits.

Nextracker's stock performance reflects the positive sentiment in the solar industry following the announcement. The company's stock price has shown strong performance, with a 25% earnings per share (EPS) growth in its most recent report. Sales rose 20% to $864.3 million.

The Relative Strength Rating from Investor's Business Daily (IBD) identifies share price performance with a score ranging from 1 (worst) to 99 (best). The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in the database. Nextracker's new RS Rating of 89 indicates that the stock is in the top 11% of all stocks for price performance over the last 52 weeks.

The news of the eased tax credit cuts has been well-received by the industry, with Nextracker and other solar companies seeing significant gains. The Trump administration's new guidance provides some relief to the solar industry, which has been under pressure due to the administration's policies against wind and solar power. However, the stricter requirements for big projects will add another hurdle to an industry already reeling from the administration's attacks.

References:
1. [https://finance.yahoo.com/news/trump-latest-attack-wind-solar-172443114.html](https://finance.yahoo.com/news/trump-latest-attack-wind-solar-172443114.html)
2. [https://www.investors.com/news/technology/nextracker-clears-key-benchmark-hitting-80-plus-rs-rating-2/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619](https://www.investors.com/news/technology/nextracker-clears-key-benchmark-hitting-80-plus-rs-rating-2/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619)
3. [https://www.eenews.net/articles/how-trumps-tax-plan-for-renewables-will-remake-us-energy-2/](https://www.eenews.net/articles/how-trumps-tax-plan-for-renewables-will-remake-us-energy-2/)