First Solar (FSLR) Dips More Than Broader Market: What You Should Know

In the latest trading session, First Solar (FSLR) closed at $185.83, marking a -3.97% move from the previous day. This change lagged the S&P 500's daily loss of 1.74%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 2.38%.

The largest U.S. solar company's stock has dropped by 7.91% in the past month, falling short of the Oils-Energy sector's gain of 10.19% and the S&P 500's loss of 4.99%.

Investors will be eagerly watching for the performance of First Solar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.8, reflecting a 43.59% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.05 billion, up 23.93% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.57 per share and a revenue of $5.1 billion, signifying shifts of +30.68% and -2.33%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for First Solar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 20.62% downward. As of now, First Solar holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, First Solar is presently being traded at a Forward P/E ratio of 10.42. This indicates a discount in contrast to its industry's Forward P/E of 19.29.

We can also see that FSLR currently has a PEG ratio of 0.34. 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. FSLR's industry had an average PEG ratio of 0.68 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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