First Solar (FSLR) ended the recent trading session at $224.30, demonstrating a -1.5% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The stock of largest U.S. solar company has fallen by 13.15% in the past month, lagging the Oils-Energy sector's loss of 4.3% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of First Solar in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.85, indicating a 10.38% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, down 3.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.61 per share and revenue of $5.1 billion, which would represent changes of +23.93% and -2.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for First Solar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. First Solar currently has a Zacks Rank of #3 (Hold).
Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 12.93. For comparison, its industry has an average Forward P/E of 20.25, which means First Solar is trading at a discount to the group.
It's also important to note that FSLR currently trades at a PEG ratio of 0.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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First Solar, Inc. (FSLR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).