Back to top

Image: Bigstock

Why the Market Dipped But Nextracker (NXT) Gained Today

Read MoreHide Full Article

In the latest market close, Nextracker (NXT - Free Report) reached $38.03, with a +1.47% movement compared to the previous day. This change outpaced the S&P 500's 0.93% loss on the day. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 1.53%.

Heading into today, shares of the solar energy equipment supplier had lost 7.84% over the past month, lagging the Oils-Energy sector's loss of 2.51% and the S&P 500's gain of 2.17% in that time.

Market participants will be closely following the financial results of Nextracker in its upcoming release. It is anticipated that the company will report an EPS of $0.67, marking a 3.08% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $606.06 million, indicating a 5.7% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.18 per share and a revenue of $2.85 billion, demonstrating changes of +3.92% and +13.96%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nextracker. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Nextracker holds a Zacks Rank of #4 (Sell).

In terms of valuation, Nextracker is presently being traded at a Forward P/E ratio of 11.8. This valuation marks a discount compared to its industry's average Forward P/E of 15.07.

Investors should also note that NXT has a PEG ratio of 4.37 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Solar was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 29% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nextracker Inc. (NXT) - free report >>

Published in