First Solar (FSLR) Plunges More Than Broader Markets: What You Need to Know


FFirst Solar (FSLR) closed the last trading day at $75.39, down -1.45% from the previous trading session. This change lagged the S&P 500’s 1.3% loss on the day. Meanwhile, the Dow lost 0.69% and the Nasdaq, a technology-heavy index, lost 0.45%.

Prior to today’s trading, shares of America’s largest solar company had gained 7.41% in the past month. This outpaced the Oil & Energy sector’s gain of 7.26% and the S&P 500’s loss of 5.33% during this period.

Wall Street will be looking for positivity from First Solar as it nears its next earnings report date. The company is expected to post EPS of -$0.14, down 107.14% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $616.35 million, down 23.28% from the year-ago quarter.

Zacks consensus estimates for FSLR’s full year call for earnings of $0.87 per share and revenue of $2.53 billion. These results would represent year-over-year variations of -80.14% and -13.5%, respectively.

It’s also important to note recent changes to analyst estimates for First Solar. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has fallen by 76.64%. First Solar is currently a Zacks rank #4 (sell).

In terms of valuation, First Solar is currently trading at a Forward P/E ratio of 87.93. This represents a premium to its industry average Forward P/E of 40.53.

Investors should also note that FSLR has a PEG ratio of 9.29 at this time. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. The Solar held an average PEG ratio of 2.35 at yesterday’s closing price.

The Solar sector is part of the Oil-Energy sector. This group has a Zacks Industry Rank of 219, which places it in the bottom 14% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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