The most recent trading session ended with Nextracker (NXT) standing at $40.12, reflecting a -0.61% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Prior to today's trading, shares of the solar energy equipment supplier had lost 10.73% over the past month. This has lagged the Oils-Energy sector's loss of 10.69% and the S&P 500's loss of 6.57% in that time.
The investment community will be paying close attention to the earnings performance of Nextracker in its upcoming release. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 2.08% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $828.26 million, showing a 12.46% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nextracker. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.87% fall in the Zacks Consensus EPS estimate. Nextracker currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nextracker has a Forward P/E ratio of 10.48 right now. This indicates a premium in contrast to its industry's Forward P/E of 9.86.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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