First Solar (FSLR) closed at $268.78 in the latest trading session, marking a -1.18% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
Shares of the largest U.S. solar company have appreciated by 6.3% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.26%, and the S&P 500's gain of 0.59%.
The investment community will be paying close attention to the earnings performance of First Solar in its upcoming release. The company is forecasted to report an EPS of $5.21, showcasing a 42.74% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.58 billion, showing a 4.23% escalation compared to the year-ago quarter.
FSLR's full-year Zacks Consensus Estimates are calling for earnings of $14.6 per share and revenue of $5.11 billion. These results would represent year-over-year changes of +21.46% and 0%, respectively.
Investors might also notice recent changes to analyst estimates for First Solar. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% higher. As of now, First Solar holds a Zacks Rank of #3 (Hold).
Looking at its valuation, First Solar is holding a Forward P/E ratio of 11.67. This valuation marks a discount compared to its industry average Forward P/E of 19.41.
Investors should also note that FSLR has a PEG ratio of 0.33 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. Solar stocks are, on average, holding a PEG ratio of 0.61 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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