On Wednesday, NEXTracker got an upgrade for its IBD SmartSelect Composite Rating from 94 to 96. Keep in mind this is an IPO, so it is still very early in the game. Thus, the wide and loose action of the chart.
The new score indicates the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. Winning stocks often have a 95 or higher score in the early stages of a new price run, so that's an important benchmark to look for when looking for the best stocks to buy and watch.
NEXTracker broke out earlier, but is now approximately -5% below the prior 34.95 entry from a ipo base. If a stock you're tracking breaks past a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a more traditional pattern and breakout, as an IPO chart is much riskier.
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One weak spot is the company's 78 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
In Q3, the company posted 263% earnings-per-share growth. That marks three straight reports with rising EPS performance. Revenue growth rose 52%, up from 38% in the prior report. The company has now posted rising growth in each of the last two reports.
NEXTracker holds the No. 1 rank among its peers in the Energy-Solar industry group. Array Technologies and Canadian Solar are also among the group's highest-rated stocks.
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