Nextracker (NXT) Gains As Market Dips: What You Should Know

In the latest close session, Nextracker (NXT) was up +2.91% at $118.74. The stock's change was more than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.28%.

The solar energy equipment supplier's stock has dropped by 7.32% in the past month, falling short of the Oils-Energy sector's gain of 8.87% and the S&P 500's loss of 3.59%.

The upcoming earnings release of Nextracker will be of great interest to investors. The company is predicted to post an EPS of $0.9, indicating a 30.23% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $805.16 million, down 12.89% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.34 per share and a revenue of $3.51 billion, demonstrating changes of +2.84% and +18.53%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Nextracker. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Nextracker is currently a Zacks Rank #3 (Hold).

Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 26.57. This represents a premium compared to its industry average Forward P/E of 17.48.

Investors should also note that NXT has a PEG ratio of 2.34 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 0.6 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 182, finds itself in the bottom 26% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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Nextracker Inc. (NXT): Free Stock Analysis Report

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

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