In the latest close session, Nextracker (NXT) was down 1.25% at $88.58. This change lagged the S&P 500's 0.09% loss on the day. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.13%.
Coming into today, shares of the solar energy equipment supplier had lost 16.5% in the past month. In that same time, the Oils-Energy sector lost 0.79%, while the S&P 500 gained 1.89%.
The investment community will be paying close attention to the earnings performance of Nextracker in its upcoming release. The company is expected to report EPS of $0.93, down 9.71% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $808.49 million, reflecting a 19.01% rise from the equivalent quarter last year.
NXT's full-year Zacks Consensus Estimates are calling for earnings of $4.15 per share and revenue of $3.39 billion. These results would represent year-over-year changes of -1.66% and +14.63%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Nextracker. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Currently, Nextracker is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nextracker has a Forward P/E ratio of 21.61 right now. For comparison, its industry has an average Forward P/E of 16.27, which means Nextracker is trading at a premium to the group.
It's also important to note that NXT currently trades at a PEG ratio of 2.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Solar industry stood at 0.79 at the close of the market yesterday.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nextracker Inc. (NXT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
