10 Cheap New Stocks To Buy Right Now

2. Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Fund Holders: 32

Forward P/E ratio as of January 25: 12.17

Market Capitalization: $5.97 billion

Nextracker Inc. (NASDAQ:NXT) is a solar tracker and software solutions company that focuses on utility-scale and distributed-generation solar projects. Its innovative tracking technologies, such as NX Horizon and NX Horizon-XTR, maximize energy production. Advanced software like TrueCapture and NX Navigator enhance plant performance and provide insights for solar project owners and operators.

The US accounts for 65% of the company’s revenue, with international operations spanning Brazil, India, Spain, and Australia. It enjoys a dominant position in the oligopolistic US solar tracker market, with a 35-40% market share. In EMEA, the company holds a 10% market share. This market has a growth rate of 48%. It’s expanding into the Middle East, with its first system already installed in Saudi Arabia.

The company’s acquisitions of Oijo and South Pile International now allow it to install solar trackers on challenging terrains like bedrock, which is crucial as solar projects increasingly develop on federal lands. By sourcing steel locally, Nextracker Inc. (NASDAQ:NXT) has diversified its supply chain, optimizing costs and maintaining high gross margins. TD Cowen initiated coverage on Nextracker Inc. (NASDAQ:NXT) on 19 December 2024, issuing a hold rating with a $41 target price. However, the majority of analysts recommend buying the stock. This sentiment is reflected in the consensus rating of Moderate Buy and a target of $53.10, higher than the current trading price.