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

In the latest close session, First Solar (FSLR) 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.