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Nextracker (NXT) Outpaces Stock Market Gains: What You Should Know

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In the latest market close, Nextracker (NXT - Free Report) reached $41.89, with a +1.67% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.22%.

Coming into today, shares of the solar energy equipment supplier had gained 12.14% in the past month. In that same time, the Oils-Energy sector lost 1.54%, while the S&P 500 gained 2.69%.

Investors will be eagerly watching for the performance of Nextracker in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 28, 2025. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 39.58% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $641.4 million, indicating a 9.72% downward movement from the same quarter last year.

NXT's full-year Zacks Consensus Estimates are calling for earnings of $3.22 per share and revenue of $2.85 billion. These results would represent year-over-year changes of +5.23% and +14.19%, respectively.

Investors might also notice recent changes to analyst estimates for Nextracker. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nextracker presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Nextracker is presently trading at a Forward P/E ratio of 12.79. This signifies a premium in comparison to the average Forward P/E of 9.26 for its industry.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% 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.

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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