bombermoon Investment Thesis First Solar, Inc. (NASDAQ:FSLR) is an American Solar manufacturer headquartered in Tempe, Arizona, with research and development labs in Ohio and California and manufacturing facilities in Ohio, Alabama (expected 2024), Louisiana (expected 2025), Malaysia, Vietnam, and India. With 6 GW of US nameplate capacity, expected to rise to over 14 GW by 2026, First Solar is the largest producer of solar panels manufactured in the United States. With First Solar's leading position as a US ...

There is some truth behind the old investment adage, “sell in May and go away.” The summer months tend to be stock market low points with September being one of the worst across all three major market indices. There is even a name for it: the September Effect.But for me, the summer doldrums mean it is time to buy. Because I like to buy stocks when they go on sale, periods when stocks are falling is when I’m looking for bargains. Previous high-fliers are now more attractively priced. So long as you seek out ...

First Solar (FSLR) ended the recent trading session at $233.24, demonstrating a -0.09% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.Coming into today, shares of the largest U.S. solar company had lost 19.93% in the past month. In that same time, the Oils-Energy sector lost 11.53%, while the S&P 500 gained 4.28%.The upcoming earnings release of Firs ...

UKRAINE - 2021/04/19: In this photo illustration a First Solar logo of an US solar company is seen ... [+] on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesFirst Solar stock has had a solid year, rising by about 33% year-to-date. In comparison, Enphase Energy stock, another solar component player, has seen its stock decline by 18% over the same period. First Solar stock has been benefiting from several fact ...

First Solar Inc.’s (FSLR) shares surged an impressive 32.6% in the year-to-date period, outperforming the Zacks solar industry, the broader Zacks Oil-Energy sector as well as the S&P 500. As the largest solar module manufacturer in the United States, First Solar rides on its consistent strategy of enhancing manufacturing capacities and innovating new products, backed by a solid financial position.First Solar Outperforms Industry, Sector & S&P500Image Source: Zacks Investment ResearchWith First Solar riding ...

Analyst Sentiments and Stock Performance - Several research firms, including BMO Capital Markets and Evercore ISI, have upgraded their price targets and ratings for First Solar, indicating confidence in the company's long-term prospects [1] - First Solar's stock has risen over 50% this year, driven by regulatory tailwinds, easing supply chain issues, and strong demand for renewable energy [1] - The company's recent earnings report exceeded expectations, further fueling investor optimism [1] AI-Driven Demand and Renewable Energy - Anticipated surge in electricity demand from AI applications is a significant factor driving bullish sentiment [2] - AI models require substantial energy, positioning solar power as a key beneficiary, with First Solar's cadmium telluride panels well-suited for large utility-scale installations [2] - First Solar's strategic positioning, with over 95% of its sales in the U.S., allows it to capitalize on the trend of increasing energy demand from AI [2] Government Support and Strategic Expansion - First Solar has benefited from the Biden administration's policies, including increased tariffs on Chinese solar cells and tax credits under the Inflation Reduction Act, enhancing the competitiveness of U.S.-based manufacturers [3] - The company is expanding its production capacity in Ohio and other states, aiming to increase manufacturing capacity to over 25 GW by 2026 [3] - A solid backlog of bookings provides revenue and margin visibility, despite operating in a politically charged environment [3] Market Outlook and Risks - First Solar's growth potential is significant, but the stock is highly susceptible to political developments, particularly the upcoming presidential election [4] - A potential Trump victory could jeopardize the favorable regulatory environment that has benefited the company [4] - The stock is likely to remain a high-risk, high-reward play, influenced by political headlines as well as operational successes [4]

Core Viewpoint - First Solar is experiencing significant growth driven by regulatory support, easing supply chain issues, and increasing demand for renewable energy, particularly in the context of the artificial intelligence sector [1][2][3]. Group 1: Company Performance - First Solar's stock has risen over 50% since early 2024, with revenues increasing by 45% year-over-year to $794 million and earnings surpassing estimates at $2.20 per share [1]. - The company has a strong backlog of bookings, growing to over 78 GW as of March 2024, up from 61.4 GW at the end of 2022, providing solid revenue and gross margin visibility [4]. Group 2: Market Trends - The demand for solar power is expected to rise as big tech companies expand data centers powered by AI, which requires significantly more electricity [2]. - First Solar's cadmium telluride panels are preferred for large utility-scale installations, positioning the company favorably in the market [2]. Group 3: Regulatory Environment - The Biden Administration's increase of tariffs on solar cells imported from China from 25% to 50% enhances the competitiveness of U.S.-based manufacturers like First Solar [3]. - First Solar is set to benefit from the Section 45X tax credit under the U.S. Inflation Reduction Act, with expectations to realize $1.0 billion to $1.05 billion in tax credits this year [3]. Group 4: Production Capacity - First Solar's manufacturing capacity is expanding, with total nameplate capacity expected to grow from 16.6 GW in 2023 to over 25 GW by 2026 [4]. - The company is increasing its manufacturing presence in the U.S., particularly in states like Alabama, Louisiana, and Ohio [4]. Group 5: Stock Performance - First Solar's stock has seen a 160% increase from $100 in early January 2021 to around $260, outperforming the S&P 500's 45% increase over the same period [5]. - The stock's performance has been inconsistent, with returns of -12% in 2021, 72% in 2022, and 15% in 2023, indicating challenges in consistently outperforming the S&P 500 [5]. Group 6: Future Outlook - The macroeconomic environment is improving, with cooling inflation and potential interest rate reductions by the Federal Reserve, which could benefit renewable energy stocks [7]. - First Solar is positioned as a key beneficiary of U.S. efforts to promote domestic renewable production due to its vertically integrated manufacturing [7].

Company Performance - First Solar (FSLR) closed at $261.29, with a +0.93% change from the previous day, outperforming the S&P 500's loss of 0.31% [1] - Over the past month, First Solar shares declined by 6.46%, underperforming the Oils-Energy sector's loss of 4.31% and the S&P 500's gain of 2.73% [1] - The upcoming earnings per share (EPS) is projected at $2.81, reflecting a 51.89% increase year-over-year, while revenue is expected to reach $980.77 million, up 20.98% from the previous year [1] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $13.59 per share and revenue of $4.53 billion, indicating increases of +75.58% and +36.37% respectively compared to the previous year [2] Analyst Estimates - Recent changes to analyst estimates for First Solar suggest positive short-term business trends, which are typically seen as favorable for the company's outlook [2] - The Zacks Rank system, which evaluates stocks based on estimate changes, currently ranks First Solar at 3 (Hold) [3] Valuation Metrics - First Solar has a Forward P/E ratio of 19.06, which is a premium compared to the industry average of 11.23 [3] - The company has a PEG ratio of 0.34, indicating a favorable valuation relative to its expected earnings growth rate, while the average PEG ratio for solar stocks is 0.47 [3] Industry Context - The Solar industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 214, placing it in the bottom 16% of over 250 industries [4] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with top-rated industries historically outperforming lower-rated ones by a factor of 2 to 1 [4]

Wall Street experts have reputations to protect. Therefore, whenever analyst downgrades materialize, it could send impacted investors into a foul mood. However, it’s important to realize that everyone makes mistakes, even market professionals.In other words, it’s not the end of the world when bearish opinions are broadcasted. In some cases, they may lay the groundwork for contrarian stocks to buy.To be sure, I don’t want to make light of the matter. Analysts – especially those from top financial firms – inf ...

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