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Here's Why First Solar (FSLR) Fell More Than Broader Market

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In the latest close session, First Solar (FSLR - Free Report) was down 3.51% at $226.08. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.

Shares of the largest U.S. solar company have appreciated by 15.24% over the course of the past month, outperforming the Oils-Energy sector's gain of 2.1%, and the S&P 500's gain of 3.5%.

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 October 30, 2025. The company's upcoming EPS is projected at $4.24, signifying a 45.70% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 73.89% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.08 per share and a revenue of $5.36 billion, indicating changes of +25.46% and +27.43%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for First Solar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% lower. Right now, First Solar possesses a Zacks Rank of #3 (Hold).

Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 15.54. This valuation marks a discount compared to its industry average Forward P/E of 16.91.

It is also worth noting that FSLR currently has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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