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First Solar (FSLR) Exceeds Market Returns: Some Facts to Consider

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First Solar (FSLR - Free Report) closed the most recent trading day at $223.53, moving +1.6% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Shares of the largest U.S. solar company have appreciated by 12.72% over the course of the past month, outperforming the Oils-Energy sector's gain of 4.06%, and the S&P 500's gain of 2.87%.

Market participants will be closely following the financial results of First Solar in its upcoming release. The company's earnings per share (EPS) are projected to be $4.29, reflecting a 47.42% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, up 74.18% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.18 per share and revenue of $5.37 billion, which would represent changes of +26.29% and +27.63%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for First Solar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. First Solar is currently a Zacks Rank #3 (Hold).

Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 14.49. This indicates a discount in contrast to its industry's Forward P/E of 16.91.

It's also important to note that FSLR currently trades at a PEG ratio of 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar was holding an average PEG ratio of 0.71 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 15% 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.


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