Is First Solar (FSLR) Stock Due for an Extended Rebound?

Core Viewpoint - First Solar's stock has shown volatility, currently trading 37% below its 52-week high, but has seen a 9% increase in January, raising questions about a potential rebound [1][3]. Financial Performance - In Q3, First Solar reported sales of $887.67 million, a 10% increase year-over-year, but fell short of the $1.06 billion estimate. The Q3 EPS was $2.91, a 16% year-over-year increase, but also missed the $3.10 expectation [3][4]. - Q4 results are anticipated on February 25, with sales expected to rise 27% to $1.47 billion and EPS projected to increase 47% to $4.77. However, the most accurate estimate for Q4 EPS is $4.57, indicating a potential miss [4][5]. Growth Projections - First Solar's annual earnings are projected to grow by 69% in fiscal 2024 to $13.13 per share, up from $7.74 in 2023. FY25 EPS is expected to climb another 54% to $20.14 [8]. - The company anticipates high double-digit sales growth in FY24 and FY25, with projections exceeding $5 billion [9]. Valuation Metrics - First Solar's stock trades at 9.2X forward earnings, significantly lower than the S&P 500's 22.2X and below the Zacks Solar Industry average of 15.2X, suggesting potential for an extended rebound [10][11]. Investment Outlook - Currently, First Solar holds a Zacks Rank 3 (Hold). The average Zacks price target is $275.43 per share, indicating a potential upside of 48% from current levels [12].