Opinions
Jim Cramer - Mad Money
Nextracker
NXT-Q
BUY
Nov 04, 2024
Stock price when the opinion was issued
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The global provider of solar panel monitoring technology has over $2 billion in order backlogs. It trades at 28x earnings and supports a 43% ROE. We like that cash reserves are growing, while shares are aggressively bought back and debt is reduced. We recommend setting a stop-loss at $44, looking to achieve $65 -- upside potential of 22%. Yield 0%
(Analysts’ price target is $64.88)We would attribute a lot of the weakness simply to investor boredom and digesting recent gains. In the short-term, NXT can trade in sympathy to interest rate expectations, with rates impacting feasibility of solar projects, so there might be some sentiment around rates weighing on shares. Overall though, the fundamentals remain strong as does the growth and tax credits/infrastructure spending over the next two years should act as a support for demand of their products.
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It has missed past quarters, but reported well last week. They have a huge backlog in solar equipment orders. Their solar panels rotate to follow the sun, thereby maximizing the sun's power. This is the best solar energy stock if Harris wins, which is why he bought it--to hedge his bets.