ARRY vs. NXT: Which Solar Tracker Stock Has More Potential?

The demand for solar power is being fueled by improving cost competitiveness, along with global trends toward decarbonization and electrification. Solar remains the fastest-growing segment within renewable energy and has emerged as one of the most economical sources of large-scale electricity generation. In this evolving landscape, Array Technologies ARRY and Nextpower Inc. NXT — two solar tracker stocks — are expected to benefit.

Array Technologies is a leading global provider of solar tracking technology to utility-scale and distributed generation customers who construct, develop and operate solar PV sites. Nextpower is a leading solar technology platform provider whose products are used used in power plants around the world.

As an investment option, which stock, ARRY or NXT, is more attractive for long-term investors? Let’s take a closer look.

The Case for Array Technologies

Array Technologies is well-positioned to capitalize on durable, long-term growth in renewable energy. The U.S. solar market continues to demonstrate strong underlying momentum, as utilities, commercial customers, and homeowners accelerate adoption of solar and storage solutions. Globally, solar deployment is expanding as governments and corporations pursue decarbonization targets. Against this backdrop, ARRY’s substantial order backlog provides meaningful revenue visibility for the coming quarters.

A key differentiator is the company’s ability to offer 100% domestically sourced trackers, strengthening its competitive position amid evolving trade and policy dynamics. Array Technologies is also focused on enhancing its product portfolio. The acquisition of APA Solar last year significantly expanded its capabilities to include foundation and fixed-tilt solutions, enabling it to compete as a more integrated supplier. The company expects to generate both organic growth in its core tracker business and inorganic growth from the APA Solar integration, supported by a healthy order book and improving book-to-bill trends.

Array Technologies has further reinforced its financial position by refinancing higher-cost debt, extending maturities and improving liquidity.
That said, federal policy changes have introduced near-term uncertainty, complicating permitting, procurement and supply-chain planning.

Although module prices have declined, elevated U.S. tariffs have increased overall system costs, putting pressure on margins and raising project risk. While the company has reported losses since the third quarter of 2024, margins have steadily improved. Consensus forecasts point to a return to profitability in full-year 2025.

The Case for Nextpower

Nextpower has evolved from a pure-play solar tracker manufacturer into a broader integrated energy technology platform, positioning itself to capitalize on multiple secular tailwinds driving the clean energy transition.

At the core of its business are advanced solar tracking systems, which optimize energy generation by aligning photovoltaic panels with the Sun’s path, significantly improving output and project returns. This technological edge has enabled Nextpower to build a leading global position, with more than 100 GW of tracker capacity shipped and long-standing relationships with major energy developers.

The company’s rebranding and strategic expansion underscore its ambition to become a full-stack energy solutions provider. Recent acquisitions have added electrical balance of system (eBOS) capabilities, while increased R&D investment has strengthened its innovation pipeline. Today, its broadened portfolio spans trackers, foundations, installation tools, monitoring and control systems, and related services. This diversification reduces reliance on trackers alone and is beginning to contribute meaningfully to growth.

Nextpower has also expanded internationally through Nextpower Arabia, a joint venture with Abunayyan Holding in the Middle East. The partnership aims to localize renewable energy technologies, reinforce regional supply chains, and support the potential manufacture and servicing of up to 12 gigawatts of solar capacity annually.

While execution risks remain as the company integrates new capabilities and scales operations, recent financial performance has been strong. Third-quarter fiscal 2026 revenues rose 34% year over year, earnings surpassed expectations, and full-year guidance was raised. The company has also strengthened shareholder returns through a multi-year buyback program and secured an investment-grade credit rating.

Estimates for ARRY and NXT

The Zacks Consensus Estimate for ARRY’s 2026 revenues implies a 17.8% year-over-year increase, while that for EPS implies a 40.1% year-over-year increase.  EPS estimates have moved 3.1% south over the past 30 days.

The Zacks Consensus Estimate for NXT’s 2026 revenues implies a 18.5% increase, while that for EPS indicates a 2.6% year-over-year increase. EPS estimates have witnessed a 2.6% upward movement over the past 30 days.

Price Performance of ARRY and NXT

NXT shares have rallied 154.3% in a year, while ARRY shares have rallied 56.4% in the same time. 

Are ARRY and NXT Shares Expensive?

Array Technologies is trading at a forward 12-month price-to-sales multiple of 1.09, higher than its median of 1.05X over the past three years. NXT’s forward 12-month price-to-sales multiple sits at 4.72, higher than its median of 2.43X over the past three years.

ARRY is trading lower than the industry average of 2.23, while NXT is trading higher than the industry average.

Parting Thoughts

Array Technologies stands to gain from solar infrastructure growth, supported by product innovation as well as domestic content advantage. Its VGM Score of B instills confidence.  Its successful backlog conversion, cost discipline and synergies from APA Solar bode well for long- term growth. 

Nextpower’s dominant market position, broadening technology portfolio, solid financial results, and supportive industry tailwinds underpin a compelling long-term investment opportunity within the accelerating renewable energy transition.

Though both companies carry a Zacks Rank #3 (Hold), price appreciation and analyst sentiments give NXT an edge over ARRY. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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