Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

4. Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Fund Investors: 39

Jim Cramer has expressed some disappointment with Nextracker Inc. (NASDAQ:NXT), despite the stock’s significant rise. He attributes part of the disappointment to concerns about the solar industry, possibly influenced by political uncertainties, particularly regarding President Trump’s fluctuating stance on solar energy. Although Trump has claimed to support solar, his mixed messages have created confusion.

“Nextracker (NASDAQ:NXT) has been a disappointment. I think one of the reasons it’s been disappointing—though it was up very big today—is because a lot of people doomed solar, perhaps because President Trump was going to get re-elected. Even though he says he’s a fan of solar, he also says he’s not a fan of solar, it is very hard to do both. But he’s certainly able to say that because the First Amendment allows you to do that.

I will say that I’ve had to check in with Dan Shugar because I’m not happy with how the stock’s done, and all he can tell me is things just continue to be good. So, I think at 11 times earnings, it’s the stock to buy in the solar group because it has real earnings. But I am sensitive to what you said. I thought I’d waited for it to come down enough to be able to buy.”

Nextracker Inc. (NASDAQ:NXT) is a strong investment choice due to its leadership in solar tracking technology, impressive financial results, and growth potential in the renewable energy sector. Nextracker Inc. (NASDAQ:NXT) leads the market with innovative products like NX Horizon and NX Horizon-XTR, which enhance utility-scale solar projects and give it a competitive edge. Nextracker’s focus on research and development, along with its extensive patent portfolio, reinforces its market position.

In its Q1 FY2024 earnings report, Nextracker Inc. (NASDAQ:NXT) showed outstanding performance. Its revenue grew by 50.1% year-over-year to $719.92 million, and earnings per share (EPS) of $0.93 exceeded expectations. Despite market concerns about margin pressures, Nextracker Inc. (NASDAQ:NXT) maintained strong profitability with a net income margin of 19.8% and a significant increase in free cash flow to $426.6 million.

Looking forward, Nextracker Inc. (NASDAQ:NXT)’s growth prospects are supported by rising global demand for renewable energy, international expansion, and a focus on high-margin products. Analysts have responded positively, issuing “buy” ratings and setting price targets as high as $71. This mix of technological innovation, solid financials, and promising growth makes Nextracker Inc. (NASDAQ:NXT) an attractive investment.