Why the Market Dipped But First Solar (FSLR) Gained Today
The latest trading session saw First Solar (FSLR) ending at $153.31, denoting a +0.41% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.14%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.
The largest U.S. solar company's shares have seen an increase of 5.49% over the last month, surpassing the Oils-Energy sector's gain of 4.9% and the S&P 500's gain of 5.34%.
The investment community will be paying close attention to the earnings performance of First Solar in its upcoming release. The company is forecasted to report an EPS of $2.18, showcasing a 445% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $800.53 million, up 46% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.55 per share and revenue of $4.5 billion, indicating changes of +75.06% and +35.52%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for First Solar. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 2.24% higher. First Solar is currently a Zacks Rank #2 (Buy).
In terms of valuation, First Solar is presently being traded at a Forward P/E ratio of 11.27. This expresses a discount compared to the average Forward P/E of 11.94 of its industry.
It's also important to note that FSLR currently trades at a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar was holding an average PEG ratio of 0.63 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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
