Highly ranked IPO stock Nextracker continues to improve as the solar energy industry recovers. On Thursday the Relative Strength (RS) Rating for Nextracker stock climbed to 72, up from 69. The upgraded rating means that Nextracker outperformed 72% of all other stocks for price performance this past year.
Nextracker's fundamentals shine. Its earnings growth rate ranged from 153% to 231% over the last four quarters. During that time its revenue growth rate rose every quarter, from 19% four quarters ago to 42% in its most recent quarter. Last quarter the company recorded a 153% rise in EPS to 96 cents per share on a 42% surge in revenue to $736.5 million.
On its website Nextracker says it will hold a conference call with analysts on Aug. 1 to discuss its fiscal Q1 2025 earnings results. Analyst consensus is for a smaller but still strong 33% rise in EPS to 64 cents, on a 29% hike in revenue to a record $616.9 million.
Nextracker Stock Rises Amid Blazing Earnings Growth
Its powerful profit growth earns Nextracker a nearly-perfect 98 IBD Earnings Per Share Rating out of a best-possible 99. It carries a good but-not-yet-great 72 Composite Rating.
One yellow flag to watch is its E Accumulation/Distribution Rating on an A+ to E scale with A+ tops and E worst The E rating means that institutional investors like ETFs and mutual funds are selling more shares than buying. However, the number of funds holding Nextracker stock jumped from 499 in the December-ended quarter to 833 in the June quarter, a bullish indicator.
Fremont, Calif.-based Nextracker is known for its gear and software that enables racks of solar panels to track the sun's movement throughout the day, collecting the most possible energy for that day. It also offers a variety of services, including training solar energy workers and providing management services to solar energy companies.
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Nextracker went public in February 2023 and traded as low as 28.24 in the first weeks after its IPO. It soared about 121% to 62.31 on June 13. It's consolidated in the weeks since then amid recent market consolidation. Thursday afternoon Nextracker stock was down about 1.5% for the day.
No. 2 Among 30 Solar Energy Stocks
The company earns the No. 2 rank among its peers in the 30- stock Energy-Solar industry group. First Solar is the top-ranked stock in the group. The solar energy group ranks no. 55 on IBD's list of 197 industry groups. That's up from a weak 140 rank three months ago
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves. See if Nextracker can continue to show renewed price strength and clear that threshold.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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