The latest trading session saw First Solar (FSLR) ending at $126.60, denoting a +0.21% adjustment from its last day's close. This change outpaced the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.
Heading into today, shares of the largest U.S. solar company had lost 19.45% over the past month, lagging the Oils-Energy sector's gain of 3.64% and the S&P 500's loss of 4.03% in that time.
The investment community will be closely monitoring the performance of First Solar in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.71, reflecting a 23.18% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $847.11 million, up 6.67% from the year-ago period.
FSLR's full-year Zacks Consensus Estimates are calling for earnings of $18.78 per share and revenue of $5.52 billion. These results would represent year-over-year changes of +56.24% and +31.16%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.35% lower. First Solar is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, First Solar is presently trading at a Forward P/E ratio of 6.73. This signifies a discount in comparison to the average Forward P/E of 10.2 for its industry.
Investors should also note that FSLR has a PEG ratio of 0.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.52.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
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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First Solar, Inc. (FSLR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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