In the latest close session, Nextpower (NXT) was down 6.14% at $111.95. This change lagged the S&P 500's 1.62% loss on the day. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The solar energy equipment supplier's shares have seen a decrease of 4.87% over the last month, not keeping up with the Oils-Energy sector's loss of 0.59% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Nextpower in its upcoming release. On that day, Nextpower is projected to report earnings of $1.03 per share, which would represent a year-over-year decline of 11.21%. Alongside, our most recent consensus estimate is anticipating revenue of $932.26 million, indicating a 7.87% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.6 per share and a revenue of $4.26 billion, signifying shifts of +2.22% and +19.56%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nextpower. Such recent modifications usually signify the changing landscape of 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.56% lower. At present, Nextpower boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Nextpower is presently being traded at a Forward P/E ratio of 25.92. Its industry sports an average Forward P/E of 19.49, so one might conclude that Nextpower is trading at a premium comparatively.
One should further note that NXT currently holds a PEG ratio of 2.27. 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 0.96.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.
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Nextpower Inc. (NXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).