Back to top

Image: Bigstock

First Solar (FSLR) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

In the latest close session, First Solar (FSLR - Free Report) was up +1.95% at $224.82. The stock outpaced the S&P 500's daily gain of 0.34%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.

Shares of the largest U.S. solar company have appreciated by 12.64% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.17%, and the S&P 500's gain of 3.54%.

The investment community will be paying close attention to the earnings performance of First Solar in its upcoming release. On that day, First Solar is projected to report earnings of $4.29 per share, which would represent year-over-year growth of 47.42%. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 74.18% escalation compared to the year-ago quarter.

FSLR's full-year Zacks Consensus Estimates are calling for earnings of $15.18 per share and revenue of $5.37 billion. These results would represent year-over-year changes of +26.29% and +27.63%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for First Solar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. First Solar is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, First Solar is currently being traded at a Forward P/E ratio of 14.53. This denotes a discount relative to the industry average Forward P/E of 17.18.

Meanwhile, FSLR's PEG ratio is currently 0.44. 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. Solar stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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