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Nextracker (NXT) Exceeds Market Returns: Some Facts to Consider

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Nextracker (NXT - Free Report) ended the recent trading session at $78.34, demonstrating a +1.57% change from the preceding day's closing price. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.71%.

Coming into today, shares of the solar energy equipment supplier had gained 10% in the past month. In that same time, the Oils-Energy sector gained 2.31%, while the S&P 500 gained 4.26%.

The investment community will be paying close attention to the earnings performance of Nextracker in its upcoming release. The company is slated to reveal its earnings on October 23, 2025. It is anticipated that the company will report an EPS of $0.98, marking a 1.03% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $830.62 million, showing a 30.69% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.09 per share and revenue of $3.34 billion, which would represent changes of -3.08% and +13.02%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.84% higher. Nextracker is currently a Zacks Rank #3 (Hold).

Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 18.88. This signifies a premium in comparison to the average Forward P/E of 16.91 for its industry.

One should further note that NXT currently holds a PEG ratio of 2.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 0.83.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 36, positioning it in the top 15% of all 250+ industries.

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.

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


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