Business

First Solar (FSLR) Stock Tumbles as Market Gains: What You Need to Know


FFirst Solar (FSLR) closed at $77.60 in the last trading session, marking a -0.79% move from the previous day. This change lagged the S&P 500’s 1.17% gain on the day. Meanwhile, the Dow Jones gained 0.8% and the Nasdaq, a technology-heavy index, added 0.18%.

Going into today, shares of America’s largest solar company had gained 11.82% over the past month, outpacing the Oil & Energy sector’s gain of 4.63% and the S&P 500’s gain 0.88% over this period.

First Solar will look to show strength ahead of its next earnings release. In this report, analysts expect First Solar to post earnings of -$0.14 per share. This would mark a year-over-year decline of 107.14%. Our most recent consensus estimate calls for quarterly revenue of $616.35 million, down 23.28% from the prior year period.

For the full year, our Zacks consensus estimates call for earnings of $0.87 per share and revenue of $2.53 billion, which would represent swings of -80.14% and -13, 5%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for First Solar. Recent revisions tend to reflect the latest short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating 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 currently holds a Zacks rank of #4 (sell).

As for its valuation, First Solar holds a Forward P/E ratio of 89.91. This represents a premium to its industry average Forward P/E of 50.47.

We can also see that FSLR currently has a PEG ratio of 9.49. 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. FSLR’s industry had an average PEG ratio of 2.32 at yesterday’s close.

The Solar sector is part of the Oil-Energy sector. This industry currently has a Zacks Industry Rank of 227, which places it in the bottom 11% 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 use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know our top 10 picks for all of 2022?

From its creation in 2012 to 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% vs. +348.7% for the S&P 500. Now our research director has combed through 4,000 companies covered by the Zacks Ranking and selected the top 10 tickers to buy and keep. Don’t miss your chance to enter…because the sooner you do, the better your chances of winning.

See actions now >>

Click to get this free report

First Solar, Inc. (FSLR): Free Stock Analysis Report

To read this article on Zacks.com, click here.

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


nasdaq

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.

Eleon

"Writer. Coffee practitioner. Twitter specialist. Food trailblazer. Subtly charming analyst. Troublemaker. Unable to type with boxing gloves on."
Back to top button