Nextracker (NXT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Nextracker (NXT) closed at $36.73, marking a -0.33% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.56%.
Shares of the solar energy equipment supplier witnessed a loss of 12.7% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 0.05% and the S&P 500's gain of 1.65%.
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 $0.67, indicating a 3.08% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $606.06 million, reflecting a 5.7% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $2.85 billion, which would represent changes of +3.92% and +13.96%, respectively, from the prior year.
Any recent changes to analyst estimates for Nextracker should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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 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, the Zacks Consensus EPS estimate has remained steady. Nextracker currently has a Zacks Rank of #4 (Sell).
Investors should also note Nextracker's current valuation metrics, including its Forward P/E ratio of 11.6. This indicates a discount in contrast to its industry's Forward P/E of 17.19.
Meanwhile, NXT's PEG ratio is currently 4.3. 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. Solar stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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