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

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Nextracker (NXT - Free Report) closed at $85.83 in the latest trading session, marking a -2.47% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.16% for the day. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.81%.

Shares of the solar energy equipment supplier witnessed a loss of 2.82% over the previous month, beating the performance of the Oils-Energy sector with its loss of 3.94%, and underperforming the S&P 500's gain of 1.03%.

Investors will be eagerly watching for the performance of Nextracker in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.93, indicating a 9.71% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $808.49 million, up 19.01% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.15 per share and a revenue of $3.39 billion, signifying shifts of -1.66% and +14.63%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Nextracker holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Nextracker has a Forward P/E ratio of 21.2 right now. Its industry sports an average Forward P/E of 16.06, so one might conclude that Nextracker is trading at a premium comparatively.

It is also worth noting that NXT currently has a PEG ratio of 2.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.84.

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NXT in the coming trading sessions, be sure to utilize Zacks.com.


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