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Here's Why You Must Add Nextracker Stock to Your Portfolio Now

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Nextracker Inc. (NXT - Free Report) , with its rising earnings estimates, robust ROE, better debt management, and strong liquidity, offers a great investment opportunity in the Zacks Solar industry.

Let us focus on the reasons that make this Zacks Rank #1 (Strong Buy) stock a solid investment pick at the moment.

NXT’s Growth Projections & Surprise History
 

The Zacks Consensus Estimate for NXT’s fiscal 2025 and 2026 earnings per share (EPS) has increased 19.7% and 15.7%, respectively, over the past 60 days.

The Zacks Consensus Estimate for its fiscal 2025 revenues is pegged at $2.86 billion, which implies a rise of 14.2% from the fiscal 2024 reported sales figure. The Zacks Consensus Estimate for its fiscal 2026 revenues is pegged at $3.19 billion, which indicates a year-over-year increase of 11.7%.

It delivered an average earnings surprise of 57.44% in the last four quarters.

NXT’s Return on Equity
 

Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, NXT’s ROE is 41.22% compared with the industry’s 1.39%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.

Debt Position of Nextracker
 

Currently, NXT’s total debt to capital is 9.26%, much better than the industry’s average of 58.18%.

NXT’s times interest earned ratio (TIE) at the end of the third quarter of fiscal 2025 was 51.2. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

NXT’s Liquidity
 

NXT’s current ratio at the end of the third quarter of fiscal 2025 was 2.21, higher than the industry’s average of 1.59. The ratio being greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

NXT Stock Price Performance
 

In the past three months, NXT shares have risen 18.1% against the industry’s decline of 20.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider
 

A few other top-ranked stocks from the same sector are Expand Energy Corporation (EXE - Free Report) , IREN Limited (IREN - Free Report) and National Fuel Gas Company (NFG - Free Report) , each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

EXE delivered an average earnings surprise of 67.46% in the last four quarters. The Zacks Consensus Estimate for 2025 EPS is pegged at $7.23, which indicates a year-over-year improvement of 412.8%.

IREN delivered an average earnings surprise of 63.89% in the last four quarters. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at 38 cents, which suggests a year-over-year rise of 231%.  

NFG delivered an average earnings surprise of 8.27% in the last four quarters. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $6.64, which calls for a year-over-year improvement of 32.5%.

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