Nextpower (NXT) closed at $112.71 in the latest trading session, marking a +2.71% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Shares of the solar energy equipment supplier have depreciated by 1.97% over the course of the past month, outperforming the Oils-Energy sector’s loss of 3.61%, and lagging the S&P 500’s gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Nextpower in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 10.34% fall compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.66 per share and revenue of $4.35 billion, indicating changes of +3.56% and +22.3%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Nextpower. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Nextpower presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Nextpower is currently trading at a Forward P/E ratio of 23.55. This valuation marks a premium compared to its industry average Forward P/E of 20.26.
One should further note that NXT currently holds a PEG ratio of 1.75. 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 0.89.
