NEXTRACKER INC-CL A (NASDAQ:NXT) – A Strong Growth Stock Meeting Minervini’s Trend Template

NEXTRACKER INC-CL A (NASDAQ:NXT) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, a provider of solar tracking solutions, demonstrates strong technical and fundamental characteristics that make it a candidate for growth-focused investors.

Why NXT Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends, supported by key technical indicators. NXT meets these criteria:

• Price Above Key Moving Averages:

  • Current price ($59.31) is above the 50-day ($43.67), 150-day ($41.29), and 200-day ($40.57) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.

• Upward-Trending Averages:

  • The 150-day and 200-day MAs are rising, reinforcing long-term strength.

• Price Relative to 52-Week Range:

  • NXT is trading 92% above its 52-week low ($30.93) and within 6% of its 52-week high ($63.19).

• Strong Relative Strength:

  • With a ChartMill Relative Strength score of 93.34, NXT outperforms 93% of the market.

High Growth Momentum Fundamentals

Beyond technical strength, NXT shows robust growth metrics:

• Earnings Growth:

  • EPS (TTM) stands at $4.22, up 38.4% year-over-year.
  • Quarterly EPS growth (Q2Q) is strong at 34.4%, with past quarters showing even higher spikes (93.8% in Q-3).

• Revenue & Profitability:

  • Sales growth (Q2Q) is up 25.5%, with consistent beats on revenue estimates (4 out of last 4 quarters).
  • Profit margins remain healthy, with the latest quarter at 16.97%.

• Free Cash Flow Growth:

  • FCF per share surged 1,726% year-over-year to $3.46, indicating strong operational efficiency.

Technical Outlook

According to ChartMill’s technical report, NXT scores a perfect 10 on technical health, supported by:

• A strong uptrend in both short and long-term timeframes.
• High liquidity with average daily volume of 2.25M shares.
• Recent price consolidation near its 52-week high, suggesting potential for further upside.

However, the setup quality rating is currently low (3/10), indicating that the stock may need a pullback or consolidation before presenting an optimal entry point.

For a deeper analysis, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

This is not investment advice. The observations are based on data available at the time of writing. Always conduct your own research before making investment decisions.