In the latest trading session, Nextpower (NXT) closed at $85.50, marking a -4.55% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq decreased by 0.52%.
The stock of solar energy equipment supplier has fallen by 7.55% in the past month, lagging the Oils-Energy sector's gain of 3.79% and the S&P 500's gain of 4.34%.
Market participants will be closely following the financial results of Nextpower in its upcoming release. On that day, Nextpower is projected to report earnings of $1.11 per share, which would represent a year-over-year decline of 6.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 17.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $4.3 billion, which would represent changes of +2.89% and +20.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nextpower. Recent revisions tend to reflect the latest 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% downward. Nextpower is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Nextpower is presently being traded at a Forward P/E ratio of 19.37. This denotes a premium relative to the industry average Forward P/E of 11.83.
It's also important to note that NXT currently trades at a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.67 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nextpower Inc. (NXT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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