Nextracker (NXT) Declines More Than Market: Some Information for Investors

In the latest trading session, Nextracker (NXT) closed at $119.85, marking a -8.1% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.74%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.

Shares of the solar energy equipment supplier have appreciated by 11.94% over the course of the past month, outperforming the Oils-Energy sector's gain of 10.19%, and the S&P 500's loss of 4.99%.

Analysts and investors alike will be keeping a close eye on the performance of Nextracker in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.9, showcasing a 30.23% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $805.16 million, showing a 12.89% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.34 per share and revenue of $3.51 billion. These totals would mark changes of +2.84% and +18.53%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Nextracker. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Nextracker presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Nextracker is at present trading with a Forward P/E ratio of 30.03. This indicates a premium in contrast to its industry's Forward P/E of 19.29.

Investors should also note that NXT has a PEG ratio of 2.64 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Solar stocks are, on average, holding a PEG ratio of 0.68 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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