Nextracker (NXT) closed the most recent trading day at $67.64, moving +1.41% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
The solar energy equipment supplier's shares have seen an increase of 10.1% over the last month, surpassing the Oils-Energy sector's gain of 2.51% and the S&P 500's gain of 2.32%.
Investors will be eagerly watching for the performance of Nextracker in its upcoming earnings disclosure. The company is expected to report EPS of $0.98, up 1.03% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $832.73 million, indicating a 31.02% growth compared to the corresponding quarter of the prior year.
NXT's full-year Zacks Consensus Estimates are calling for earnings of $4.07 per share and revenue of $3.33 billion. These results would represent year-over-year changes of -3.55% and +12.56%, respectively.
It is also important to note the recent changes to analyst estimates for Nextracker. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Nextracker holds a Zacks Rank of #3 (Hold).
Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 16.41. Its industry sports an average Forward P/E of 16.41, so one might conclude that Nextracker is trading at no noticeable deviation comparatively.
We can additionally observe that NXT currently boasts a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 0.65.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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