First Solar (FSLR) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, First Solar (FSLR) reached $156.70, with a -0.85% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Heading into today, shares of the largest U.S. solar company had gained 11.44% over the past month, outpacing the Oils-Energy sector's gain of 3.04% and the S&P 500's gain of 4.83% in that time.
The investment community will be paying close attention to the earnings performance of First Solar in its upcoming release. The company's upcoming EPS is projected at $2.32, signifying a 480% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $899.86 million, reflecting a 64.12% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.66 per share and revenue of $4.5 billion, which would represent changes of +76.49% and +35.66%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.15% higher within the past month. Right now, First Solar possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that First Solar has a Forward P/E ratio of 11.57 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.71.
It's also important to note that FSLR currently trades at a PEG ratio of 0.27. 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. The Solar was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
