We came across a bullish thesis on Nextracker Inc. (NASDAQ:NXT) on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on NXT. Nextracker Inc. (NASDAQ:NXT)’s share was trading at $36.74 as of Dec 24th. NXT’s trailing and forward P/E were 9.19 and 10.81 respectively according to Yahoo Finance.
A rooftop view of a busy city skyline with solar energy panels and wind turbines illuminating the skyline.
Nextracker (NASDAQ:NXT) is a provider of solar tracking systems designed to enhance the efficiency of utility-scale solar power plants by adjusting panels to follow the sun’s trajectory. This innovation significantly increases energy output while reducing costs, supported by advanced system monitoring and optimization software solutions. The company’s financial metrics highlight its strong performance with a robust revenue growth of 50.13% and a gross profit margin of 32.98%. NXT trades at an attractive valuation, with a forward EV/Sales of 1.6x and EV/EBITDA of 7.7x. It generates $2.20 in free cash flow per share over the last twelve months, making it a compelling investment opportunity.
Compared to competitors like Array Technologies, NXT stands out for its more geographically diversified revenue base. A significant portion of sales are derived from outside the U.S., reducing exposure to regional risks. This positioning, combined with its strong financials and operational expertise, underscores its potential for long-term growth. For investors who are bullish on the solar industry, NXT emerges as a top choice, given its strategic advantages and industry tailwinds. At current valuation levels, NXT appears undervalued, offering a unique opportunity for significant upside in a rapidly expanding market.
Nextracker Inc. (NASDAQ:NXT) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held NXT at the end of the third quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of NXT as an investment, our conviction lies in the belief that some 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 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 was originally published at Insider Monkey.