Nextracker (NXT) Gains As Market Dips: What You Should Know
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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%.
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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.