Nextracker is Thursday's IBD Stock Of The Day, with the solar stock in a buy zone as President Donald Trump's "Big Beautiful Bill," which broadly includes support for the fossil fuel industry while doing away with renewable energy incentives, faces a House vote ahead of a July 4 deadline set by the president.
Solar stocks initially cratered in late June stock market action after a Senate version of Trump's spending and tax plan kept a full phaseout of solar and wind energy tax credits by 2028.
However, solar stocks generally moved higher on Wednesday as analysts claimed the Senate-passed bill could be positive for renewables, as it dropped the solar and wind excise tax, which was designed to penalize renewable energy projects that utilized materials or components from designated "foreign entities of concern."
Under the Senate version, solar projects that begin construction within a year of the bill's enactment are exempted from the year-end 2027 placed in service requirement.
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Mizuho and Wells Fargo analysts wrote Tuesday that this decision by the U.S. Senate is good news for the solar and wind energy industry, including Nextracker. The Senate approved its version of Trump's tax and spending bill on Tuesday.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Nextracker Stock Performance
NXT stock advanced 8.6% to 66.31 on the stock market Thursday. It gained more than 6% on Wednesday.
That left the stock up around 14% for the week. Nextracker stock is trading above traditional 63.19 buy point from a consolidation that dates back to May 15. Shares are within the 5% buy zone that runs to 66.35, according to MarketSurge analysis.
Investors could have plotted an early entry at 61.01.
Among analysts, NXT shares have an average 63.65 price target and an overweight rating, according to FactSet.
Nextracker stock is up more than 80% in the 2025 stock market while the collective 27-stock IBD-tracked Energy-Solar industry group has edged 0.4% higher this year.
Meanwhile, Sunrun soared 16.8% on Thursday.
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SolarEdge Technologies surged 16.7% while First Solar jumped 8.5% on Thursday.
Nextera Energy advanced 1.2% while Enphase Energy gained 3.9% in stock market action on Thursday.
Average True Range Within Guidelines
Nextracker stock has a 21-day average true range of 4.81%. The ATR metric is available on IBD's MarketSurge charting tool and gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
The S&P 500 and Nasdaq are now in a power trend. Investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
NXT shares have a strong 98 Composite Rating out of a best-possible 99. Nextracker stock also has a 94 Relative Strength Rating and a 93 EPS Rating.
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