NASDAQ:NXT—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Sep 30, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether NEXTRACKER INC-CL A (NASDAQ:NXT) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but NEXTRACKER INC-CL A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Assessing Growth for NASDAQ:NXT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NXT has achieved a 8 out of 10:

The Earnings Per Share has grown by an impressive 1129.14% over the past year.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 38.50%.
Measured over the past years, NXT shows a very strong growth in Revenue. The Revenue has been growing by 30.49% on average per year.
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 10.61% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:NXT's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NXT scores a 7 out of 10:

NXT's Altman-Z score of 2.98 is fine compared to the rest of the industry. NXT outperforms 66.29% of its industry peers.
NXT has a debt to FCF ratio of 0.47. This is a very positive value and a sign of high solvency as it would only need 0.47 years to pay back of all of its debts.
NXT has a Debt to FCF ratio of 0.47. This is amongst the best in the industry. NXT outperforms 95.51% of its industry peers.
NXT has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
NXT's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. NXT outperforms 61.80% of its industry peers.
A Current Ratio of 2.11 indicates that NXT has no problem at all paying its short term obligations.
NXT has a better Quick ratio (1.91) than 69.66% of its industry peers.

Assessing Profitability for NASDAQ:NXT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NXT has achieved a 9:

With an excellent Return On Assets value of 15.51%, NXT belongs to the best of the industry, outperforming 97.75% of the companies in the same industry.
NXT's Return On Equity of 36.34% is amongst the best of the industry. NXT outperforms 97.75% of its industry peers.
NXT's Return On Invested Capital of 28.37% is amongst the best of the industry. NXT outperforms 98.88% of its industry peers.
NXT had an Average Return On Invested Capital over the past 3 years of 17.04%. This is significantly above the industry average of 10.93%.
The last Return On Invested Capital (28.37%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
The Profit Margin of NXT (14.87%) is better than 94.38% of its industry peers.
NXT's Profit Margin has improved in the last couple of years.
NXT has a Operating Margin of 24.63%. This is amongst the best in the industry. NXT outperforms 97.75% of its industry peers.
In the last couple of years the Operating Margin of NXT has grown nicely.
NXT has a Gross Margin of 34.19%. This is in the better half of the industry: NXT outperforms 79.78% of its industry peers.
In the last couple of years the Gross Margin of NXT has grown nicely.

How does the Setup look for NASDAQ:NXT

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:NXT is 7:

Although the technical rating is bad, NXT does present a nice setup opportunity. Prices have been consolidating lately. There is very little resistance above the current price.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of NXT contains the most current fundamental analsysis.

Check the latest full technical report of NXT for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.