This ‘Buy’-Rated Stock Lets You Profit from the Sunshine

• Nextracker (NXT) has exceptional technical momentum.
• Shares just hit a new all-time high and are up 162% over the past year.
• NXT maintains a 100% “Buy” opinion from Barchart.
• Fundamentals show projected revenue growth and positive analyst sentiment, although NXT’s valuation appears stretched and volatility is high.
• While analysts project continued growth, investors should exercise disciplined risk management due to NXT’s extreme volatility and speculative nature.

Today’s Featured Stock

Valued at $13.8 billion, Nextracker (NXT) is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. NXT checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 19, the stock has gained 38.25%.

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www.barchart.com

Barchart Technical Indicators for Nextracker

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Nextracker hit an all-time high of $93.90 in morning trading on Oct. 16.

• NXT has a Weighted Alpha of +166.30.
• Nextracker has an 100% “Buy” opinion from Barchart.
• The stock gained 162.61% over the past year.
• Nextracker has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $92.07 with a 50-day moving average of 70.43.
• NXT has made 16 new highs and gained 37.65% in the last month.
• Relative Strength Index (RSI) is at 76.09.
• There’s a technical support level around $89.84.

Don’t Forget the Fundamentals

• $13.8 billion market capitalization.
• 22.82x trailing price-earnings ratio.
• Revenue is projected to grow 14.38% this year and another 10.23% next year.
• Earnings are estimated to decrease by 0.59% this year but increase again by 8.82% next year.

Analyst and Investor Sentiment on Nextracker

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts and most investment advisory services agree on NXT.

• The Wall Street analysts tracked by Barchart have issued 18 “Strong Buy,” 1 “Moderate Buy,” and 8 “Hold” opinions on the stock with price targets between $55 and $110, a very wide range.
• Value Line rates the stock "Above Average" with a price target of $98.
• CFRA’s MarketScope Advisor rates it a “Buy.”
• 8,570 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy" and comments: “The company shows strong growth, excellent profitability, outstanding stock momentum, and highly positive earnings revisions, even though its valuation is somewhat stretched.”

The Bottom Line on Nextracker

Analysts project growth in revenue and earnings for NXT, and the company has a solid following by Wall Street analysts. Investors should note the stock’s extreme volatility and employ disciplined risk management.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.