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Nextracker (NXT) Outperforms Broader Market: What You Need to Know

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Nextracker (NXT - Free Report) ended the recent trading session at $60.53, demonstrating a +0.41% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.23% gain on the day. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq increased by 0.34%.

Prior to today's trading, shares of the solar energy equipment supplier had gained 31.1% over the past month. This has outpaced the Oils-Energy sector's loss of 4.97% and the S&P 500's gain of 3.96% in that time.

Market participants will be closely following the financial results of Nextracker in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 27.08% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $618.56 million, indicating a 28.99% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.89 per share and a revenue of $2.87 billion, indicating changes of -5.56% and +14.72%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nextracker. These revisions help to show the ever-changing nature of near-term business trends. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.34% downward. Nextracker is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Nextracker is at present trading with a Forward P/E ratio of 20.83. This indicates a premium in contrast to its industry's Forward P/E of 12.96.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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