In the latest trading session, Nextracker (NXT) closed at $91.04, marking a -1.46% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.57%.
The solar energy equipment supplier's stock has climbed by 6.37% in the past month, exceeding the Oils-Energy sector's gain of 0.15% and the S&P 500's gain of 4.22%.
Analysts and investors alike will be keeping a close eye on the performance of Nextracker in its upcoming earnings disclosure. The company is expected to report EPS of $0.93, down 9.71% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $808.49 million, indicating a 19.01% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $3.39 billion, which would represent changes of -1.66% and +14.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nextracker. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Nextracker boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 22.25. Its industry sports an average Forward P/E of 18.06, so one might conclude that Nextracker is trading at a premium comparatively.
Also, we should mention that NXT has a PEG ratio of 2.71. 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. NXT's industry had an average PEG ratio of 0.95 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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