We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy the Surge in First Solar Stock Before It's Too Late?
The excitement for First Solar’s (FSLR - Free Report) massive earnings potential is back in effect, with the solar industry leader being boosted by a powerful mix of policy support, analyst upgrades, and strong business fundamentals.
Being a prime beneficiary of the Inflation Reduction Act, which has an emphasis on incentivizing and investing in clean energy and climate initiatives, more long-term visibility demand is on the horizon amid increased government funding for renewable energy.
This comes as First Solar’s U.S. production facilities are reportedly sold out through 2028, with the company specializing in cadmium telluride (CdTe) thin-film solar modules that offer superior performance compared to traditional silicon panels.
As a reminder that the all-time high for First Solar stock is over $300 a share, FSLR has spiked +10% so far this month and is now up nearly +40% year to date.
Recently hitting a fresh 52-week peak of $248, this certainly begs the question of whether it's time to buy the surge in FSLR before it gets more expensive or if there will still be better buying opportunities ahead.
Image Source: Zacks Investment Research
FSLR Reports On October 30
Propelling FSLR is that First Solar is expected to post strong Q3 results on Thursday, October 30. Zacks' projections call for First Solar’s Q3 sales to be up an eye-popping 74% to $1.54 billion compared to $887.67 million in the prior year quarter.
Taking advantage of this impressive top line expansion, First Solar’s earnings are expected to climb 46% to $4.24 per share versus EPS of $2.91 in Q3 2024.
FSLR Technical Analysis
With investors being lured by foreseeable expectations of high double-digit top and bottom line growth in fiscal 2025 and FY26, FSLR has been on a tear since breaking out above its 50-day and 200-day SMAs in July.
Previously, at the end of last year, the drop in First Solar’s 50-day SMA (green line) below the 200-day SMA (red line) led to an extended downtrend in FSLR before the reemergence of several catalysts, including the clarification of what ended up being favorable policy changes regarding updated rules for clean energy tax credits and federal incentives.
First Solar’s 50-day and 200-day SMA support levels are currently at roughly $169 and $210 a share, respectively.
Image Source: Zacks Investment Research
First Solar’s Attractive P/E Valuation
At current levels, FSLR still trades at a reasonable 16X forward earnings multiple despite such an extensive rally in recent months.
From a historical perspective, First Solar stock not only offers a nice discount to the benchmark S&P 500 and many of its solar peers but also trades more than 20% from its decade-long median of 21X, with an extreme high of over 1,500X during this period.
Image Source: Zacks Investment Research
FSLR Price Target & Analyst Upgrades
Blowing past its current Average Zacks Price Target of $231.17, several analysts have recently upgraded their price targets for First Solar stock to over $260.
This includes analysts at BMO Capital (BMO - Free Report) , Jefferies Financial Group (JEF - Free Report) , and JPMorgan (JPM - Free Report) , with Citigroup (C - Free Report) currently having the street high price target of $300.
Image Source: Zacks Investment Research
What the Zacks Rank Suggests
Most influential to Zacks' proprietary ranking system is the trend of earnings estimate revisions (EPS), with FSLR currently landing a Zacks Rank #3 (Hold). Over the last quarter, EPS revisions for First Solar are still positive but have dipped in the last week for FY25 and FY26.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Although it’s very enticing to chase the rally, the technical analysis of FSLR also shows how this stock can be very volatile and influenced by these trading indicators. It’s understandable how FOMO could be setting in, but the possibility of better buying opportunities is not off the table, even with new emerging catalysts such as the use of solar energy to support AI infrastructure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Buy the Surge in First Solar Stock Before It's Too Late?
The excitement for First Solar’s (FSLR - Free Report) massive earnings potential is back in effect, with the solar industry leader being boosted by a powerful mix of policy support, analyst upgrades, and strong business fundamentals.
Being a prime beneficiary of the Inflation Reduction Act, which has an emphasis on incentivizing and investing in clean energy and climate initiatives, more long-term visibility demand is on the horizon amid increased government funding for renewable energy.
This comes as First Solar’s U.S. production facilities are reportedly sold out through 2028, with the company specializing in cadmium telluride (CdTe) thin-film solar modules that offer superior performance compared to traditional silicon panels.
As a reminder that the all-time high for First Solar stock is over $300 a share, FSLR has spiked +10% so far this month and is now up nearly +40% year to date.
Recently hitting a fresh 52-week peak of $248, this certainly begs the question of whether it's time to buy the surge in FSLR before it gets more expensive or if there will still be better buying opportunities ahead.
Image Source: Zacks Investment Research
FSLR Reports On October 30
Propelling FSLR is that First Solar is expected to post strong Q3 results on Thursday, October 30. Zacks' projections call for First Solar’s Q3 sales to be up an eye-popping 74% to $1.54 billion compared to $887.67 million in the prior year quarter.
Taking advantage of this impressive top line expansion, First Solar’s earnings are expected to climb 46% to $4.24 per share versus EPS of $2.91 in Q3 2024.
FSLR Technical Analysis
With investors being lured by foreseeable expectations of high double-digit top and bottom line growth in fiscal 2025 and FY26, FSLR has been on a tear since breaking out above its 50-day and 200-day SMAs in July.
Previously, at the end of last year, the drop in First Solar’s 50-day SMA (green line) below the 200-day SMA (red line) led to an extended downtrend in FSLR before the reemergence of several catalysts, including the clarification of what ended up being favorable policy changes regarding updated rules for clean energy tax credits and federal incentives.
First Solar’s 50-day and 200-day SMA support levels are currently at roughly $169 and $210 a share, respectively.
Image Source: Zacks Investment Research
First Solar’s Attractive P/E Valuation
At current levels, FSLR still trades at a reasonable 16X forward earnings multiple despite such an extensive rally in recent months.
From a historical perspective, First Solar stock not only offers a nice discount to the benchmark S&P 500 and many of its solar peers but also trades more than 20% from its decade-long median of 21X, with an extreme high of over 1,500X during this period.
Image Source: Zacks Investment Research
FSLR Price Target & Analyst Upgrades
Blowing past its current Average Zacks Price Target of $231.17, several analysts have recently upgraded their price targets for First Solar stock to over $260.
This includes analysts at BMO Capital (BMO - Free Report) , Jefferies Financial Group (JEF - Free Report) , and JPMorgan (JPM - Free Report) , with Citigroup (C - Free Report) currently having the street high price target of $300.
Image Source: Zacks Investment Research
What the Zacks Rank Suggests
Most influential to Zacks' proprietary ranking system is the trend of earnings estimate revisions (EPS), with FSLR currently landing a Zacks Rank #3 (Hold). Over the last quarter, EPS revisions for First Solar are still positive but have dipped in the last week for FY25 and FY26.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Although it’s very enticing to chase the rally, the technical analysis of FSLR also shows how this stock can be very volatile and influenced by these trading indicators. It’s understandable how FOMO could be setting in, but the possibility of better buying opportunities is not off the table, even with new emerging catalysts such as the use of solar energy to support AI infrastructure.