In the latest trading session, First Solar (FSLR) closed at $101.75, marking a +1.51% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.39%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.97%.
Coming into today, shares of the largest U.S. solar company had lost 4.68% in the past month. In that same time, the Oils-Energy sector gained 9.66%, while the S&P 500 gained 2.58%.
Investors will be hoping for strength from FSLR as it approaches its next earnings release. The company is expected to report EPS of $1.26, down 37.62% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $713.18 million, down 49.04% from the prior-year quarter.
Any recent changes to analyst estimates for FSLR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.7% higher within the past month. FSLR is currently a Zacks Rank #3 (Hold).
In terms of valuation, FSLR is currently trading at a Forward P/E ratio of 27.23. This represents a discount compared to its industry’s average Forward P/E of 61.72.
Meanwhile, FSLR’s PEG ratio is currently 1.56. 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. FSLR’s industry had an average PEG ratio of 2.06 as of yesterday’s close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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