Nextracker (NXT) closed the most recent trading day at $60.71, moving +2.17% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.13%. Elsewhere, the Dow lost 1.79%, while the tech-heavy Nasdaq lost 1.3%.
The solar energy equipment supplier's stock has dropped by 3.52% in the past month, falling short of the Oils-Energy sector's gain of 5.03% and the S&P 500's gain of 3.55%.
The investment community will be closely monitoring the performance of Nextracker in its forthcoming earnings report. The company is predicted to post an EPS of $1.03, indicating a 10.75% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $867.15 million, indicating a 20.45% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $3.33 billion, which would represent changes of -8.29% and +12.56%, respectively, from the prior year.
Any recent changes to analyst estimates for Nextracker should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.27% higher. Nextracker presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nextracker has a Forward P/E ratio of 15.37 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 15.37.
Investors should also note that NXT has a PEG ratio of 1.29 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. Solar stocks are, on average, holding a PEG ratio of 0.57 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 250+ industries.
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.
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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