In the latest close session, Nextpower (NXT) was down 2.51% at $116.15. The stock trailed the S&P 500, which registered a daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
The solar energy equipment supplier's shares have seen a decrease of 21.73% over the last month, not keeping up with the Oils-Energy sector's loss of 4.76% and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Nextpower in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.03, reflecting a 11.21% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $932.26 million, indicating a 7.87% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.63 per share and revenue of $4.31 billion. These totals would mark changes of +2.89% and +21.16%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nextpower. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 1.2% higher. Currently, Nextpower is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Nextpower is currently being traded at a Forward P/E ratio of 25.74. This denotes a premium relative to the industry average Forward P/E of 23.19.
We can also see that NXT currently has a PEG ratio of 2.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.97.
The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nextpower Inc. (NXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).