Why NASDAQ:NXT Is a Promising High-Growth Stock in the Midst of Consolidation.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if NEXTRACKER INC-CL A (NASDAQ:NXT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted NEXTRACKER INC-CL A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Exploring NASDAQ:NXT's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NXT boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 1002.10% over the past year.
• NXT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.42%.
• 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.
• Based on estimates for the next years, NXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.90% on average per year.
• NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.85% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Insights: NASDAQ:NXT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NXT has received a 5 out of 10:

• NXT has a debt to FCF ratio of 0.34. This is a very positive value and a sign of high solvency as it would only need 0.34 years to pay back of all of its debts.
• NXT has a better Debt to FCF ratio (0.34) than 96.47% of its industry peers.
• NXT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
• NXT has a better Quick ratio (1.76) than 64.71% 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:

• NXT has a Return On Assets of 12.16%. This is amongst the best in the industry. NXT outperforms 95.29% of its industry peers.
• The Return On Equity of NXT (30.87%) is better than 95.29% of its industry peers.
• NXT's Return On Invested Capital of 27.67% is amongst the best of the industry. NXT outperforms 98.82% 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 10.96%.
• The last Return On Invested Capital (27.67%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 12.25%, NXT belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
• In the last couple of years the Profit Margin of NXT has grown nicely.
• With an excellent Operating Margin value of 23.49%, NXT belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
• In the last couple of years the Operating Margin of NXT has grown nicely.
• NXT's Gross Margin of 32.52% is fine compared to the rest of the industry. NXT outperforms 72.94% of its industry peers.
• NXT's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:NXT?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NXT currently has a 8 as setup rating:

Although the technical rating is bad, NXT does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 47.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 42.71, 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.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

For an up to date full technical analysis you can check the technical report of NXT

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.