First Solar (FSLR) ended the recent trading session at $207.00, demonstrating a +2.63% change from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.94%.
Heading into today, shares of the largest U.S. solar company had gained 0.88% over the past month, lagging the Oils-Energy sector’s gain of 2.51% and the S&P 500’s gain of 2.32%.
Market participants will be closely following the financial results of First Solar in its upcoming release. It is anticipated that the company will report an EPS of $4.29, marking a 47.42% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.55 billion, up 74.18% from the prior-year quarter.
FSLR’s full-year Zacks Consensus Estimates are calling for earnings of $15.17 per share and revenue of $5.37 billion. These results would represent year-over-year changes of +26.21% and +27.63%, respectively.
Any recent changes to analyst estimates for First Solar should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% decrease. First Solar currently has a Zacks Rank of #3 (Hold).
In terms of valuation, First Solar is presently being traded at a Forward P/E ratio of 13.29. This expresses a discount compared to the average Forward P/E of 16.41 of its industry.
It’s also important to note that FSLR currently trades at a PEG ratio of 0.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. By the end of yesterday’s trading, the Solar industry had an average PEG ratio of 0.65.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
