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Why the Market Dipped But First Solar (FSLR) Gained Today

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The most recent trading session ended with First Solar (FSLR - Free Report) standing at $185.29, reflecting a +0.32% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.95%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 0.84%.

The largest U.S. solar company's shares have seen an increase of 15.89% over the last month, surpassing the Oils-Energy sector's gain of 8.7% and the S&P 500's gain of 1.78%.

Analysts and investors alike will be keeping a close eye on the performance of First Solar in its upcoming earnings disclosure. The company's earnings report is set to go public on May 1, 2024. The company's upcoming EPS is projected at $2.10, signifying a 425% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $760.71 million, up 38.74% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.54 per share and a revenue of $4.5 billion, representing changes of +74.94% and +35.51%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for First Solar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Currently, First Solar is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, First Solar is presently trading at a Forward P/E ratio of 13.64. For comparison, its industry has an average Forward P/E of 13.69, which means First Solar is trading at a discount to the group.

It is also worth noting that FSLR currently has a PEG ratio of 0.32. 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. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 0.45.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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