In the latest trading session, Nextracker (NXT) closed at $73.14, marking a +2.51% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 0.7%.
The stock of solar energy equipment supplier has risen by 3.75% in the past month, leading the Oils-Energy sector's gain of 3.62% and undershooting the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Nextracker in its upcoming release. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 1.03% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $832.73 million, up 31.02% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.07 per share and a revenue of $3.33 billion, representing changes of -3.55% and +12.56%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nextracker. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nextracker presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Nextracker is holding a Forward P/E ratio of 17.55. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 17.55.
It's also important to note that NXT currently trades at a PEG ratio of 1.4. 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. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.68.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many 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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