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Nextracker (NXT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Nextracker (NXT - Free Report) closed at $55.81, marking a -0.91% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.09%.

Shares of the solar energy equipment supplier have appreciated by 28.79% over the course of the past month, outperforming the Oils-Energy sector's loss of 2.35% and the S&P 500's gain of 4.59%.

Market participants will be closely following the financial results of Nextracker in its upcoming release. The company's earnings per share (EPS) are projected to be $0.61, reflecting a 27.08% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $618.56 million, up 28.99% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.89 per share and a revenue of $2.87 billion, demonstrating changes of -5.56% and +14.72%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nextracker. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.34% lower within the past month. Nextracker presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Nextracker currently has a Forward P/E ratio of 19.46. Its industry sports an average Forward P/E of 13.59, so one might conclude that Nextracker is trading at a premium comparatively.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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