NXT (Long) - Clean energy player with even cleaner financialsNextracker Inc.BATS:NXTjurajholikLet's preamble with what the company actually does (as I imagine a lot of traders trade without even bothering... understandably). In short, Nextracker operates in the solar energy space where it is a leader in providing energy output optimization solutions, i.e. mechanical systems that rotate solar panels to follow the sun, along with software (TrueCapture) that uses sensors and machine learning to fine-tune positioning in real time. Fundamentals NXT has been growing very strongly in recent years (see the table) despite the numerous hiccups this space has seen since 2022. There is also a backlog of $4.5bn, giving us clear visibility into the next year. Profitability is strong with earnings growth even outpacing revenue growth, showing strong operating leverage. This all comes on the back of a relatively cheap valuation, with P/E of just below 18, which is significantly lower than some of its competitors like NVT at 52, and RRX at 43. No clear reason for why the markets are discounting the stock. The balance sheet is rock solid, with no debt and $766m in cash. Moreover, free cash flow is plentiful with the firm most recently generating $622m in FCF. Overall, the company is growing, has strong financials and is cheaply valued compared to its competitors - the kind of smoothie I usually look for. One obvious risk is policy, given that the current administration doesn't really see eye to eye with renewables and two thirds of NXT's revenue still comes from the US. Technicals Just breaking into an all-time high is a nice-to-have advantage when entering a new trade. The stock is breaking out from a decent, almost year-and-half long base, though I would prefer the base to be a tad more prolongated. The stock broke the ATH on higher volume, pulled back to around the breakout point and is currently establishing the next leg higher The price is some distance away from its moving averages, so there is a chance that there still might be some more consolidation around this level before we proceed higher Trade Main caveat is that the stock is about to release its earnings on Tuesday, so naturally it is a slight gamble to buy ahead of it. I decided to jump in beforehand just because I have strong conviction (and I love to punch the wall when I always get it wrong), but I would advise others to first wait on the results as a potential catalyst. For gamblers like myself, the ATH breakout point likely serves as the best possible stoploss (black line). One more reason why these earnings in particular could be even more of a gamble is that the BBB bill was passed since the last earnings, so if the executives decide to sprinkle the release with some not-so-positive comments regarding that, it could spook investors. Follow me for more analysis & Feel free to ask any questions you have, I am happy to help If you like my content, please leave a like, comment or a donation, it motivates me to keep producing ideas, thank you :)