Nextracker was among a group of solar stocks that jumped Monday on news that the Trump administration's planned cuts to clean energy tax credits won't be as drastic as earlier thought. Nextracker stock shot up more than 11% in Monday afternoon trading.
Also on Monday, No. 1 ranked Nextracker stock saw its Relative Strength (RS) Rating jump 11 points, from 78 to 89. The upgraded RS Rating shows that the solar energy systems stock is in the top 11% of all stocks for price performance over the last 52 weeks.
The rating upgrade also signals a huge leap for the Fremont, Calif.-based company's stock potential. Decades of market research reveals that the best-performing stocks typically have an RS Rating north of 80 as they begin their biggest climbs. That rating level is Nextracker's new wheelhouse.
Nextracker gear enables solar panels to track the sun throughout the day to gain maximum energy collection.
Hone Your Stock-Picking Skills By Focusing On These Factors
Nextracker Is No. 1 In Solar Industry Group
Nextracker holds the No. 1 rank among its peers in the Energy-Solar industry group, according to IBD Stock Checkup. Sunrun and SolarEdge Technologies are also among the group's highest-rated stocks.
Among its other key ratings Nextracker has a terrific 97 out of 99 for both its EPS Rating and Composite Rating. Additionally, it carries a best-possible A SMR Rating (sales + profit margins + return on equity) and a superior B Accumulation/Distribution Rating.
Nextracker posted 25% EPS growth in its most recent report, to $1.16 per share. Sales rose 20% to $864.3 million.
One way to invest in solar stocks without betting on a single stock is to buy ETF shares, such as the Invesco Solar (TAN) exchange traded fund. An IBD story earlier today noted that "The recent moves higher confirm a break in a long-term downward trend from when the ETF reached a high in early 2021."
Working On Consolidation With New Buy Point
Nextracker stock is working on a consolidation with a 67.87 entry. See if the stock can break out in heavy trading. Note that it's a third-stage base. Later-stage patterns can work, but caution is warranted because, by that point, the stock has already made a significant move.
The exclusive Relative Strength Rating from Investor's Business Daily identifies share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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