First Solar (FSLR – Free Report) closed at $132.51 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500’s 2.13% gain on the day. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.61%.
The largest U.S. solar company’s stock has dropped by 17.17% in the past month, falling short of the Oils-Energy sector’s loss of 5.54% and the S&P 500’s loss of 9.57%.
Analysts and investors alike will be keeping a close eye on the performance of First Solar in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.82, showcasing a 28.18% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $866.58 million, up 9.13% from the prior-year quarter.
FSLR’s full-year Zacks Consensus Estimates are calling for earnings of $18.85 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +56.82% and +31.58%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for First Solar. 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 company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 8.97% lower. First Solar is currently a Zacks Rank #3 (Hold).
Investors should also note First Solar’s current valuation metrics, including its Forward P/E ratio of 7.05. This denotes a discount relative to the industry’s average Forward P/E of 9.38.
One should further note that FSLR currently holds a PEG ratio of 0.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Solar industry stood at 0.49 at the close of the market yesterday.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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