Nextracker (NXT) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Nextracker (NXT) closed at $63.94, marking a -3.78% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.

The solar energy equipment supplier's stock has climbed by 12.59% in the past month, exceeding the Oils-Energy sector's gain of 3.17% and the S&P 500's gain of 3.94%.

Investors will be eagerly watching for the performance of Nextracker in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.03, reflecting a 10.75% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $867.15 million, up 20.45% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.87 per share and revenue of $3.33 billion, indicating changes of -8.29% and +12.56%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. At present, Nextracker boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Nextracker is holding a Forward P/E ratio of 17.19. For comparison, its industry has an average Forward P/E of 17.43, which means Nextracker is trading at a discount to the group.

It's also important to note that NXT currently trades at a PEG ratio of 1.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.65.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NXT in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nextracker Inc. (NXT) : Free Stock Analysis Report

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

Zacks Investment Research