Back to top

Image: Bigstock

First Solar (FSLR) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

First Solar (FSLR - Free Report) closed at $215.73 in the latest trading session, marking a -1.58% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.

Heading into today, shares of the largest U.S. solar company had gained 9.91% over the past month, outpacing the Oils-Energy sector's gain of 1.1% and the S&P 500's gain of 3.64%.

The investment community will be closely monitoring the performance of First Solar in its forthcoming earnings report. The company is expected to report EPS of $4.29, up 47.42% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 74.18% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.17 per share and revenue of $5.37 billion. These totals would mark changes of +26.21% and +27.63%, respectively, from last year.

Any recent changes to analyst estimates for First Solar should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. First Solar presently features a Zacks Rank of #3 (Hold).

Digging into valuation, First Solar currently has a Forward P/E ratio of 14.45. This expresses a discount compared to the average Forward P/E of 17.09 of its industry.

Investors should also note that FSLR has a PEG ratio of 0.43 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. FSLR's industry had an average PEG ratio of 0.7 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


First Solar, Inc. (FSLR) - free report >>

Published in