Nextracker (NXT) closed the most recent trading day at $89.60, moving -3.43% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.69%.
Shares of the solar energy equipment supplier witnessed a gain of 2.42% over the previous month, beating the performance of the Oils-Energy sector with its gain of 1.8%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Nextracker in its upcoming earnings disclosure. In that report, analysts expect Nextracker to post earnings of $0.93 per share. This would mark a year-over-year decline of 9.71%. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and a revenue of $3.39 billion, representing changes of -1.66% and +14.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Nextracker should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nextracker presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Nextracker currently has a Forward P/E ratio of 22.35. This signifies a premium in comparison to the average Forward P/E of 16.47 for its industry.
Investors should also note that NXT has a PEG ratio of 2.72 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.61.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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