ZACKS·2025-06-30 14:31Core Insights - Clean energy investments are rising globally, with solar power being the fastest-growing energy source, benefiting companies like First Solar (FSLR) and Nextracker Inc. (NXT) [1][20] - Both companies present unique investment opportunities amid increasing investor interest in green energy [1][20] Company Overview - First Solar specializes in advanced thin-film photovoltaic (PV) solar modules and utility-scale solar projects, while Nextracker focuses on solar tracker technologies for utility-scale and distributed generation applications [2] - Global solar power generation has doubled in the past three years, attracting investors to solar stocks [3] Financial Stability & Growth Drivers - As of March 31, 2025, First Solar had cash and cash equivalents of $891 million, long-term debt of $328 million, and current debt of $197 million, indicating strong solvency [4] - Nextracker reported cash and cash equivalents of $766 million with no notable debt, reflecting solid financial footing [5] - The solar energy market is experiencing enhanced demand due to favorable government policies, declining technology costs, and increased awareness of clean energy, benefiting both FSLR and NXT [6] Production Capacity & Contracts - First Solar's total installed nameplate production capacity was approximately 21 gigawatts (GW) as of March 31, 2025, with expectations to exceed 25 GW by the end of 2026 [7] - First Solar has contracts for the future sale of 66.1 GW of solar modules valued at $19.8 billion, expected to be recognized as revenue through 2030 [7] Recent Developments - Nextracker's NX Horizon solar trackers were selected for a 550 MW solar park in Europe, and the company surpassed 10 GW of tracker deployments in India [8] - Nextracker acquired Bentek Corporation for $78 million to enhance its domestic supply chain and accelerate solar plant construction [8] Stock Performance & Valuation - Nextracker's stock has outperformed First Solar, gaining 38.4% in three months and 26.5% over the past year, while FSLR's stock has declined by 31.6% [10][18] - First Solar is trading at a forward earnings multiple of 8.32X, below its median of 9.42X, while Nextracker's forward earnings multiple is 14.55X, indicating a more attractive valuation for FSLR [18] Analyst Sentiment & Future Outlook - The Zacks Consensus Estimate for FSLR's 2025 sales implies a 16.3% year-over-year rise, while NXT's fiscal 2026 sales estimate suggests a 12.6% increase [14][15] - First Solar's long-term contracts and aggressive capacity expansion make it appealing for value-focused investors, despite recent downward revisions in near-term estimates [20] - Nextracker's strategic acquisitions and global project wins reflect improving analyst sentiment, although it faces a short-term dip in earnings estimates [21][22]