In the latest trading session, Nextracker (NXT) closed at $64.33, marking a -7.78% move from the previous day. This change lagged the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.37%.
The solar energy equipment supplier's shares have seen an increase of 29.67% over the last month, surpassing the Oils-Energy sector's gain of 0.87% and the S&P 500's gain of 1.85%.
The upcoming earnings release of Nextracker will be of great interest to investors. In that report, analysts expect Nextracker to post earnings of $0.98 per share. This would mark year-over-year growth of 1.03%. At the same time, our most recent consensus estimate is projecting a revenue of $832.73 million, reflecting a 31.02% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.07 per share and a revenue of $3.33 billion, demonstrating changes of -3.55% and +12.56%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nextracker. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Nextracker currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Nextracker is holding a Forward P/E ratio of 17.16. This signifies a discount in comparison to the average Forward P/E of 18.01 for its industry.
It's also important to note that NXT currently trades at a PEG ratio of 1.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.7.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nextracker Inc. (NXT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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