First Solar (FSLR) Gains As Market Dips: What You Should Know
First Solar (FSLR) closed at $162.16 in the latest trading session, marking a +0.5% move from the prior day. This move outpaced the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Prior to today's trading, shares of the largest U.S. solar company had gained 6.5% over the past month. This has outpaced the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 2.7% in that time.
Analysts and investors alike will be keeping a close eye on the performance of First Solar in its upcoming earnings disclosure. In that report, analysts expect First Solar to post earnings of $2.18 per share. This would mark year-over-year growth of 445%. Alongside, our most recent consensus estimate is anticipating revenue of $823.54 million, indicating a 50.2% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.49 per share and a revenue of $4.5 billion, signifying shifts of +74.29% and +35.52%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for First Solar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.32% higher. First Solar is currently a Zacks Rank #3 (Hold).
Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 11.96. This valuation marks a premium compared to its industry's average Forward P/E of 11.83.
It is also worth noting that FSLR currently has a PEG ratio of 0.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.72.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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
