We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. Since Nextracker Inc. (NASDAQ:NXT) ranks 9th on the list, it deserves a deeper look.
Jim Cramer in a fresh episode of “Mad Money” on CNBC said that while investing isn’t easy, it’s made even more difficult by “authentic Wall Street gibberish” and “arcane technology.” Cramer said that there’s an “entire industry” in Wall Street wanting people to think that investing is hard and “ordinary people” cannot do it on their own. Cramer said that many people in the financial industry are just “after your fees” and they aren’t interested in making money from original investing. Cramer said that hedge fund managers and mutual funds make investing look inaccessible and impenetrable.
Cramer said that he’s “pulling back the curtain” and emphasized that investing isn’t “rocket science” or “brain surgery” and you don’t need to go to a business school to understand it. Cramer pitched himself as a “coach” or a “translator” who can explain the meaning of complex financial terms to ordinary people.
“You can comprehend all the mystical-sounding vocabulary we throw around here as long as you have a translator, a coach like me, who can explain what the darn words mean.”
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Nextracker Inc. (NASDAQ:NXT)
Number of Hedge Fund Investors:47
Jim Cramer recently said there is a great buying opportunity on the dip around Nextracker Inc. (NASDAQ:NXT).
“Their technology lets you increase your yield from solar panels. The stock is down. It’s a great opportunity.”
Wall Street is also growing bullish on Nextracker Inc. (NASDAQ:NXT). Mizuho earlier this month gave a $59 price target on the stock, saying Nextracker Inc. (NASDAQ:NXT) is positioned to benefit from demand growth of solar power driven by data center and AI.
Nextracker Inc. (NASDAQ:NXT) is also seeing a boost in worldwide demand. During the fiscal fourth quarter, the company saw a 90% YoY increase in international revenue as it expands into markets such as India, Australia, Europe and Brazil. During the quarter, Nextracker Inc. (NASDAQ:NXT) reported an increase in full-year gross margins to 28%, thanks to global supply chain optimization which allowed the company to lower logistics expense. As of the end of the fiscal fourth quarter, Nextracker Inc. (NASDAQ:NXT) had $474 million in total cash, exceeding its total debt of $150 million by more than threefold. During an earnings call, Nextracker Inc. (NASDAQ:NXT) disclosed that its global supply chain capacity had expanded to over 50 gigawatts annually, with U.S. capacity surpassing 30 gigawatts per year.
Nextracker Inc. (NASDAQ:NXT) stands to benefit from the secular tailwinds in the industry. According to data from the U.S. Energy Information Administration, solar is expected to grow at a CAGR of 26% over the next five years.
Overall, Nextracker Inc. (NASDAQ:NXT) ranks 9th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: Top 10 Stocks in July. While we acknowledge the potential of Nextracker Inc. (NASDAQ:NXT), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Nextracker Inc. (NASDAQ:NXT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.