Nextracker (NXT) closed at $87.04 in the latest trading session, marking a -3.51% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.
Coming into today, shares of the solar energy equipment supplier had gained 3.17% in the past month. In that same time, the Oils-Energy sector lost 1.02%, while the S&P 500 gained 0.94%.
The investment community will be closely monitoring the performance of Nextracker in its forthcoming earnings report. The company is forecasted to report an EPS of $0.93, showcasing a 9.71% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $808.49 million, up 19.01% from the prior-year quarter.
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 take note of any recent adjustments to analyst estimates for Nextracker. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nextracker currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Nextracker is currently exchanging hands at a Forward P/E ratio of 21.73. This expresses a premium compared to the average Forward P/E of 17.29 of its industry.
It is also worth noting that NXT currently has a PEG ratio of 2.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NXT's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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