Nextracker (NXT) closed at $110.12 in the latest trading session, marking a -4.18% move from the prior day. This change lagged the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
Heading into today, shares of the solar energy equipment supplier had lost 5.68% over the past month, lagging the Oils-Energy sector's gain of 0.77% and the S&P 500's gain of 5.15%.
The upcoming earnings release of Nextracker will be of great interest to investors. The company is forecasted to report an EPS of $0.89, showcasing a 31.01% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $807.33 million, indicating a 12.66% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.36 per share and revenue of $3.51 billion. These totals would mark changes of +3.32% and +18.59%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Nextracker. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Nextracker holds a Zacks Rank of #2 (Buy).
In terms of valuation, Nextracker is currently trading at a Forward P/E ratio of 24.56. This indicates a premium in contrast to its industry's Forward P/E of 16.19.
It's also important to note that NXT currently trades at a PEG ratio of 2.16. 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. NXT's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 19% echelons of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nextracker Inc. (NXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).