Why NEXTRACKER INC-CL A (NASDAQ:NXT) Is a Promising High-Growth Stock in the Midst of Consolidation.

Exploring Growth Potential: NEXTRACKER INC-CL A (NASDAQ:NXT) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and NEXTRACKER INC-CL A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected NEXTRACKER INC-CL A on our screen for growth with base formation, suggesting it merits a closer look.

Understanding NXT's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NXT has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 57.49% over the past year.
• The Revenue has grown by 21.46% in the past year. This is a very strong growth!
• NXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.49% yearly.
• Based on estimates for the next years, NXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.14% on average per year.
• NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.99% yearly.
• 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.

Assessing Health Metrics for NXT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NXT, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 3.39 indicates that NXT is not in any danger for bankruptcy at the moment.
• NXT's Altman-Z score of 3.39 is fine compared to the rest of the industry. NXT outperforms 75.27% of its industry peers.
• NXT has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.29, NXT belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
• NXT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
• NXT's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. NXT outperforms 66.67% of its industry peers.
• A Current Ratio of 2.20 indicates that NXT has no problem at all paying its short term obligations.
• NXT has a better Current ratio (2.20) than 62.37% of its industry peers.
• NXT has a better Quick ratio (1.96) than 76.34% of its industry peers.

Profitability Analysis for 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, NXT has achieved a 9:

• With an excellent Return On Assets value of 18.69%, NXT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• The Return On Equity of NXT (39.64%) is better than 98.92% of its industry peers.
• The Return On Invested Capital of NXT (26.41%) is better than 97.85% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 9.76%.
• The last Return On Invested Capital (26.41%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
• NXT has a Profit Margin of 20.12%. This is amongst the best in the industry. NXT outperforms 100.00% of its industry peers.
• NXT's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 25.83%, NXT belongs to the top of the industry, outperforming 98.92% of the companies in the same industry.
• NXT's Operating Margin has improved in the last couple of years.
• NXT's Gross Margin of 37.66% is amongst the best of the industry. NXT outperforms 86.02% of its industry peers.
• NXT's Gross Margin has improved in the last couple of years.

Why is NXT a setup?

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 NXT is 7:

NXT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 48.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.98, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NXT in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.