In the latest trading session, Nextracker (NXT) closed at $113.64, marking a -2.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 0.83%.
The solar energy equipment supplier's stock has dropped by 0.24% in the past month, falling short of the Oils-Energy sector's gain of 4.75% and the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Nextracker in its upcoming release. The company's upcoming EPS is projected at $0.89, signifying a 31.01% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $805.16 million, down 12.89% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $3.51 billion, which would represent changes of +2.84% and +18.53%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nextracker. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nextracker is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 24.72. This signifies a premium in comparison to the average Forward P/E of 16.03 for its industry.
One should further note that NXT currently holds a PEG ratio of 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.67 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 20% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Nextracker Inc. (NXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).