First Solar (FSLR) Beats Stock Market Upswing: What Investors Need to Know

Core Viewpoint - First Solar is expected to report strong financial results, with significant year-over-year growth in both earnings and revenue, indicating a positive outlook for the company and the solar industry as a whole [2][3]. Company Performance - First Solar's stock closed at $207.00, reflecting a +2.63% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.47% [1]. - Over the past month, First Solar's shares have gained 0.88%, which is below the Oils-Energy sector's gain of 2.51% and the S&P 500's gain of 2.32% [1]. Financial Estimates - The anticipated EPS for First Solar is $4.29, representing a 47.42% increase compared to the same quarter last year, with expected revenue of $1.55 billion, up 74.18% from the prior-year quarter [2]. - Full-year estimates project earnings of $15.17 per share and revenue of $5.37 billion, indicating year-over-year increases of +26.21% and +27.63%, respectively [3]. Analyst Sentiment - Recent adjustments to analyst estimates for First Solar are crucial, as positive revisions often reflect favorable business outlooks [3]. - The Zacks Rank system currently rates First Solar at 3 (Hold), with a recent 0.49% decrease in the consensus EPS estimate over the last 30 days [5]. Valuation Metrics - First Solar has a Forward P/E ratio of 13.29, which is lower than the industry average of 16.41, indicating a potential undervaluation [6]. - The company also has a PEG ratio of 0.4, compared to the solar industry's average PEG ratio of 0.65, suggesting strong growth potential relative to its valuation [6]. Industry Context - The solar industry is part of the Oils-Energy sector and holds a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries, indicating strong performance relative to other sectors [7].