First Solar (FSLR) closed at $195.20 in the latest trading session, marking a -2.7% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw a downswing of 0.15%, while the tech-heavy Nasdaq appreciated by 1.6%.
The largest U.S. solar company's shares have seen an increase of 0.09% over the last month, not keeping up with the Oils-Energy sector's gain of 0.77% and the S&P 500's gain of 5.15%.
The upcoming earnings release of First Solar will be of great interest to investors. On that day, First Solar is projected to report earnings of $2.8 per share, which would represent year-over-year growth of 43.59%. Alongside, our most recent consensus estimate is anticipating revenue of $1.05 billion, indicating a 23.82% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $17.4 per share and a revenue of $5.11 billion, demonstrating changes of +22.45% and -2.19%, respectively, from the preceding year.
Any recent changes to analyst estimates for First Solar should also be noted by investors. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.34% downward. First Solar currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 11.53. This expresses a discount compared to the average Forward P/E of 16.19 of its industry.
Investors should also note that FSLR has a PEG ratio of 0.43 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.75.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 19% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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First Solar, Inc. (FSLR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).