Why Nextracker Stock Is Soaring After Earnings

Nextracker Inc. NXT shares are trading higher Thursday after the company posted better-than-expected third-quarter financial results.

The Details:

Nextracker reported its third-quarter financials after the bell on Wednesday with blockbuster earnings of 96 cents per share, beating the analyst consensus estimate of 48 cents by 100%.

Revenue clocked in at $710.43 million, representing a 38.38% increase over sales of $513.37 million from the same period last year.

The company also raised its full-year 2024 outlook, with revenue now estimated to be between $2.425 billion and $2.475 billion.

Several analysts have raised their price targets on Nextracker following the earnings release:

• Goldman Sachs analyst Brian Lee maintained Nextracker with a Buy and raised the price target from $62 to $70.
• Wells Fargo analyst Praneeth Satish maintained Nextracker with an Overweight and raised the price target from $57 to $68.
• JP Morgan analyst Mark Strouse maintained Nextracker with an Overweight and raised the price target from $61 to $73.

According to data from Benzinga Pro, Nextracker shares are trading above the stock’s 50-day moving average of $43.29 and marked a new, intraday 52-week high of $54.95 on Thursday.

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NXT Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at NEXTracker, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For NEXTracker, the 200-day moving average sits at $39.58, according to Benzinga Pro, which is below the current price of $52.48. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

NXT Price Action: According to Benzinga Pro, Nextracker shares are up 17% at $53.00 at the time of publication.

Image: Created using AI via Midjourney