Nextracker (NXT) Stock Drops Despite Market Gains: Important Facts to Note

Nextracker (NXT) closed the most recent trading day at $73.99, moving -2.81% from the previous trading session. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%. The solar energy equipment supplier's shares have seen an increase of 13.19% over the last month, surpassing the Oils-Energy sector's gain of 0.91% and the S&P 500's gain of 3.15%.Market participants will be closely following the financial results of Nextracker in its upcoming release. It is anticipated that the company will report an EPS of $0.98, marking a 1.03% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $832.73 million, up 31.02% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.07 per share and a revenue of $3.33 billion, representing changes of -3.55% and +12.56%, respectively, from the prior year. Any recent changes to analyst estimates for Nextracker should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been no change in the Zacks Consensus EPS estimate. Nextracker is currently sporting a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Nextracker has a Forward P/E ratio of 18.73 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.09. We can also see that NXT currently has a PEG ratio of 1.5. 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 the market closed yesterday, the Solar industry was having an average PEG ratio of 0.7. The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 20% of all industries, numbering over 250. 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks