The latest trading session saw First Solar (FSLR) ending at $174.11, denoting a +1.29% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.
Coming into today, shares of the largest U.S. solar company had lost 7.68% in the past month. In that same time, the Oils-Energy sector lost 1.54%, while the S&P 500 gained 2.69%.
The upcoming earnings release of First Solar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.71, reflecting a 44.92% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.47 billion, reflecting a 26.91% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for First Solar. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. First Solar is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, First Solar is presently trading at a Forward P/E ratio of 8.46. This valuation marks a discount compared to its industry's average Forward P/E of 9.26.
Investors should also note that FSLR has a PEG ratio of 0.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Solar industry had an average PEG ratio of 0.68 as trading concluded yesterday.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FSLR in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.