U.S. Markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.85
    -0.50 (-2.44%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.5422%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • Vix

    26.70
    -2.01 (-7.00%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.5930%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.4074%)
     
  • BTC-USD

    19,214.82
    -114.54 (-0.59%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     

First Solar (FSLR) Dips More Than Broader Markets: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, First Solar (FSLR) closed at $77.61, marking a -1.18% move from the previous day. This change lagged the S&P 500's daily loss of 0.27%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the largest U.S. solar company had gained 2.67% over the past month. This has lagged the Oils-Energy sector's gain of 4.38% and the S&P 500's gain of 7.36% in that time.

First Solar will be looking to display strength as it nears its next earnings release. On that day, First Solar is projected to report earnings of -$0.25 per share, which would represent a year-over-year decline of 112.76%. Our most recent consensus estimate is calling for quarterly revenue of $616.35 million, down 23.28% from the year-ago period.

FSLR's full-year Zacks Consensus Estimates are calling for earnings of $0.63 per share and revenue of $2.54 billion. These results would represent year-over-year changes of -85.62% and -13.17%, respectively.

Investors should also note any recent changes to analyst estimates for First Solar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.29% lower. First Solar is currently a Zacks Rank #4 (Sell).

In terms of valuation, First Solar is currently trading at a Forward P/E ratio of 124.51. Its industry sports an average Forward P/E of 44.98, so we one might conclude that First Solar is trading at a premium comparatively.

Also, we should mention that FSLR has a PEG ratio of 13.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FSLR's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
First Solar, Inc. (FSLR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research