Nextracker (NXT) ended the recent trading session at $40.57, demonstrating a +0.82% swing from the preceding day's closing price. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.23%.
Heading into today, shares of the solar energy equipment supplier had lost 18.11% over the past month, lagging the Oils-Energy sector's loss of 1.02% and the S&P 500's gain of 2.55% in that time.
Investors will be eagerly watching for the performance of Nextracker in its upcoming earnings disclosure. On that day, Nextracker is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 1.54%. Our most recent consensus estimate is calling for quarterly revenue of $620.73 million, up 8.26% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.13 per share and a revenue of $2.85 billion, representing changes of +2.29% and +14.05%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nextracker. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.85% fall in the Zacks Consensus EPS estimate. At present, Nextracker boasts a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Nextracker is currently exchanging hands at a Forward P/E ratio of 12.86. For comparison, its industry has an average Forward P/E of 13.02, which means Nextracker is trading at a discount to the group.
It is also worth noting that NXT currently has a PEG ratio of 4.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 44% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
