First Solar (FSLR) closed at $102.81 in the latest trading session, marking a -1.8% move from the prior day. This move was narrower than the S&P 500’s daily loss of 2.57%. Meanwhile, the Dow lost 2.05%, and the Nasdaq, a tech-heavy index, lost 2.61%.
Investors will be hoping for strength from FSLR as it approaches its next earnings release. In that report, analysts expect FSLR to post earnings of $1.27 per share. This would mark a year-over-year decline of 37.13%. Our most recent consensus estimate is calling for quarterly revenue of $713.18 million, down 49.04% from the year-ago period.
Investors might also notice recent changes to analyst estimates for FSLR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. FSLR is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that FSLR has a Forward P/E ratio of 29.75 right now. For comparison, its industry has an average Forward P/E of 67.68, which means FSLR is trading at a discount to the group.
Investors should also note that FSLR has a PEG ratio of 1.71 right now. 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 2.26 as of yesterday’s close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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