Jim Cramer is Talking About These 12 Stocks

6. Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Fund Holders: 39

Nextracker Inc. (NASDAQ:NXT) is an energy solutions provider specializing in solar tracking and software solutions designed for utility-scale and distributed generation solar projects both in the United States and internationally.

During his Mad Money show’s Lightning round, Cramer said that he is not going to trust Nextracker Inc. (NASDAQ:NXT) “because it is one of the most poorly acting stocks on good and bad days.” He added that he finds it incredibly disturbing.

On September 3, Jefferies initiated coverage of the stock with a Hold rating and a $46 price target. The analyst views the company as a unique success story within the clean tech arena and highlights its history of beating earnings expectations. However, the firm also pointed to sector challenges, a recent change in the CFO position, and potential project delays as factors that create a complex risk-reward scenario for investors.

An industry note from Philip Shen, managing director of Roth Capital Partners, in April, highlighted some challenges that could impact the industry. He cautioned that the United States may soon face another round of tariffs, which could affect solar equipment prices significantly.

The Biden administration’s imposition of import tariffs on products from China and Southeast Asia has already raised concerns among developers about increased module costs. It has created unease in the solar market, as new tariffs could disrupt pricing and introduce volatility at a time when the industry is seeking stability and effective support for domestic solar manufacturers.

During the Q1 FY25 earnings call, Nextracker Inc.’s (NASDAQ:NXT) management characterized the potential impact of tariffs under the AD/CVD laws as a secondary headwind and acknowledged that these issues could delay some projects.