First Solar stock is expensive and the future doesn't look as bright as it might seem.First Solar (FSLR 1.46%) is one of the best companies in the solar industry. But after a strong run the last few years, the company is reporting less backlog and profits may come under fire due to subsidy reductions. In this video, Travis Hoium looks at the company's trends and why now may be a great time to sell the stock.*Stock prices used were end-of-day prices of Dec. 7, 2024. The video was published on Dec. 9, 2024. ...

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The report highlights that First Solar benefits from U.S. trade protection policies, particularly following the preliminary ruling on anti-dumping and countervailing duties on Southeast Asian solar components [1] - The company is a leader in cadmium telluride (CdTe) thin-film solar modules, focusing on the U.S. market and expanding domestic production capacity, with a backlog of orders totaling 72.8 GW [1] - The projected net profits for 2024-2026 are estimated at $1.406 billion, $2.377 billion, and $3.064 billion, respectively, reflecting year-on-year growth rates of 69.3%, 69.0%, and 28.9% [1] Financial Summary - As of the end of 2023, the company reported total assets of $10.365 billion, with total liabilities of $3.678 billion, resulting in total equity of $6.687 billion [3] - Revenue for 2023 is reported at $3.319 billion, with projections of $4.233 billion for 2024, $5.707 billion for 2025, and $6.717 billion for 2026, indicating a compound annual growth rate of 26.7% [3] - The gross profit margin is expected to increase from 39.2% in 2023 to 60.1% by 2026, while the net profit margin is projected to rise from 25.0% to 45.6% over the same period [3] Market Dynamics - The U.S. market is expected to see continued expansion in domestic production capacity, with First Solar's production guidance indicating a total capacity of 25.2 GW by 2026, including new capacity coming online in Ohio [1] - The report notes that the U.S. trade protection measures are likely to impact the import volume and competitiveness of solar components, benefiting domestic producers like First Solar [1]

The election of Donald Trump has reignited speculation about the future of clean energy stocks, particularly in the solar sector. With a Republican-controlled White House and likely GOP majorities in Congress, investors are bracing for potential changes to the Inflation Reduction Act (IRA), which has been pivotal in driving clean energy growth. The Invesco Solar ETF, a key barometer for solar stocks, has dropped over 7% this month and is down 35% year-to-date, reflecting market concerns about the sector's o ...

The solar industry is in a downturn, but this one company is primed to continue its winning ways.In this video, Motley Fool contributors Jason Hall and Tyler Crowe explain why First Solar (FSLR 2.25%) is starting to look like a very good buy.*Stock prices used were from the afternoon of Nov. 21, 2024. The video was published on Nov. 23, 2024. ...

Core Viewpoint - The growth of solar power is unstoppable despite political uncertainties, and First Solar is well-positioned to benefit from this trend [1][2][3] Industry Overview - Solar power production capacity in the U.S. grew a record-breaking 32.4 gigawatts last year, accounting for over half of the country's electricity-generating potential expansion [5] - The U.S. Energy Information Administration projects a 15% increase in electricity demand by 2050, with renewables like solar expected to contribute significantly to capacity growth [16] Company Positioning - First Solar has a backlog of 73.3 gigawatts of solar panels yet to be delivered, indicating strong demand despite recent stock price declines [11][12] - The company primarily serves the North American market and is largely insulated from potential tariffs due to its domestic manufacturing [10] Technological Advantage - First Solar's use of Cadmium Telluride (CdTe) photovoltaic panels offers durability and efficiency, making them attractive investments for utility-scale buyers [13] Market Sentiment - Despite recent stock price volatility, analysts maintain a strong buy rating for First Solar, with a consensus price target of $280.79, nearly 50% above its current price [17]

Core Viewpoint - First Solar Inc. (FSLR) has experienced a significant decline in share price, dropping 21.2% over the past three months, which is worse than the solar industry's decline of 6.3% and the S&P 500's gain of 5.2% [1][3]. Company Performance - First Solar's stock performance has been negatively impacted by manufacturing issues with its Series 7 modules, leading to potential losses estimated between $50 million and $100 million [6][7]. - The company has lowered its sales guidance for 2024 due to the termination of a contract with Plug Power and unfavorable average selling prices in certain markets, particularly India [7]. - Despite these challenges, First Solar achieved record production of 3.8 gigawatts (GW) in Q3 2024 and sold 3 GW of solar modules, resulting in a 10.8% year-over-year sales improvement [8]. Market Position and Growth Potential - First Solar is the largest solar PV manufacturer in the Western Hemisphere and is expanding its manufacturing capacity by approximately 5.8 GW, aiming to meet production targets of 15.6-15.9 GW and sell 14.2-14.6 GW of solar modules by the end of 2024 [9]. - The long-term earnings growth rate consensus estimate for FSLR is 43.4% [10]. - The Zacks Consensus Estimate for fourth-quarter revenues and earnings shows improvements of 27.7% and 47.1%, respectively, from the prior year [11]. Financial Estimates - The Zacks Consensus Estimate for 2024 earnings indicates a 70.5% improvement from 2023, while revenues are expected to surge by 25.5% [12]. - Current estimates for Q4 2024 revenues are projected at $1.488 billion, with earnings at $4.78 per share, reflecting a year-over-year growth of 27.7% and 47.1%, respectively [13]. Valuation Metrics - FSLR's forward 12-month price-to-sales (P/S) ratio is 3.59X, significantly higher than the peer group's average of 0.96X, indicating that investors are paying a premium for expected sales growth [17].

First Solar (NASDAQ: FSLR ) is a strong investment opportunity because of its unique positioning. Compared to the traditional silicon-based panels, the thin-film technology is not only proprietary to First Solar but also has essential advantages in efficiency, environmental impacts, and manufacturingAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article mysel ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about First Solar (FSLR) .First Solar currently has an average brokerag ...

With a market capitalization of over $23 billion, First Solar Inc. NASDAQ: FSLR is the biggest solar company in the U.S., where it has notched success with its low-cost and easily scalable Cadmium Telluride (CdTe)-based solar panel technology. First Solar TodayFSLRFirst Solar$196.70 +2.68 (+1.38%) 52-Week Range$129.21▼$306.77P/E Ratio16.94Price Target$281.13Add to WatchlistHowever, in late October 2024, the firm posted disappointing fiscal results for the third quarter, including both top- and bottom-line ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...