Nextracker (NXT): The #1 Solar Stock Isn’t What You Think

If you haven’t noticed, the solar sector has been wrecked.

High interest rates, policy overhangs, and overcapacity fears sent investors running from renewables. 

But buried in the rubble is a stock that doesn’t belong there … and it’s our top-rated name in the entire solar industry.

Meet Nextracker (NASDAQ: NXT): a B-rated stock according to our Zen Ratings system. It’s a global category leader, and one of the cleanest, most profitable businesses in the entire clean energy space. Here’s why it’s so different from the rest of the industry … and ranked accordingly.

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Why Nextracker?

Here are three reasons why NXT warrants a spot on your watchlist (#3 is really important)...

1. #1 in the World: Nextracker is the market leader in solar tracker systems: the hardware + software that optimizes solar panel angles to boost power output. It holds 23% global market share and has been the top shipper nine years running.

2. Hybrid Model = Better Margins: But it’s not just a hardware vendor. Nextracker also generates recurring revenue from software like TrueCapture and NX Navigator, which use machine learning and real-time data to improve energy yield. That mix boosts margins and builds customer stickiness.

3. $4.5B Backlog + Utility-Scale Tailwind: Utility-scale solar is booming. Installations hit a record 593 GW in 2024, with U.S. deployments up 33%. The driver? You guessed it: AI/data centers. Plus, long-term policy incentives (like the 30% IRA tax credit). Nextracker sits right in the middle of that wave.

The Numbers That Matter

With 20+% operating margins, this is one of the most capital-efficient businesses in clean energy today, because it’s not just making commoditized hardware that China can make even cheaper (like many other players in the solar industry). 

Nextracker isn’t a commodity play. It’s a dominant, tech-enabled cash machine with software margins and a balance sheet that gives it offensive flexibility while peers are forced to retrench. Yet it trades at a forward PE of just 14. 

So it’s no wonder it earns a B in Value according to our Zen Component Grades … and an A in Financials, which grades for free cash flow to return on assets (ROA), gross profit to assets, long-term debt to assets, and more. Strong financials are crucial for making exciting stock market gains.

To see how NXT ranks across Growth, Momentum, and more, click here.

Top analysts we track also rate NXT a strong buy, with zero sell or strong sell ratings:

To see their price predictions for the stock, click here.

Bottom Line

Most solar stocks are burning cash or bleeding market share. NXT is priced like it’s doing the same, because most people haven’t bothered to look under the hood. Take a closer look at NXT for yourself here.

What to Do Next?

• 9 Special Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
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Want to get in touch? Email us at news@wallstreetzen.com.