First Solar Inc. Shares Fall Behind the Market in Recent Session

In a recent trading session, First Solar Inc. (FSLR) saw its shares drop to $156.70, which represents a -0.85% decline from the previous day's close. This decline was notably steeper than the S&P 500's loss, which was just 0.12%. Comparatively, the Dow Jones Industrial Average saw a 0.25% drop, while the tech-heavy Nasdaq Composite Index decreased by 0.41%.

First Solar's Performance

Before this downturn, FSLR had been outperforming other indices with an 11.44% gain over the prior month, surpassing the Oils-Energy sector's advance of 3.04% and the S&P 500's improvement of 4.83%. Investors have now set their sights on First Solar’s upcoming earnings report, where the company is expected to post earnings per share (EPS) of $2.32. This projected EPS denotes a 480% surge from the same quarter in the preceding year. Revenues are also expected to have grown, with current estimates suggesting a 64.12% increase to $899.86 million.

Future Outlook and Analysts’ Estimates

For the upcoming full year, analysts are predicting earnings of $13.66 per share and total revenue reaching $4.5 billion. These figures would mark significant increases of +76.49% for earnings and +35.66% for revenue compared to the previous year. Any changes to analysts' estimates for First Solar are crucial indicators of the company's near-term business prospects. Upward revisions suggest analysts are optimistic about the company’s profit-generating abilities. As a result, these revisions could give hints about the stock's future performance.

Zacks Rank and Valuations

First Solar currently holds a Zacks Rank of #3 (Hold), which takes into account recent estimate revisions and provides investors with a guideline for action. When it comes to valuation, First Solar's Forward Price-to-Earnings (P/E) ratio is at 11.57, slightly lower than the industry average of 11.71. Additionally, FSLR's Price/Earnings to Growth (PEG) ratio stands at 0.27, which is below the Solar industry average PEG ratio of 0.72, suggesting that the stock could be undervalued considering its growth potential.

The Solar industry, part of the larger Oils-Energy sector, is currently ranked 165 by Zacks, placing it in the bottom 35% of over 250 industries. This ranking helps investors gauge the performance potential of different industry groups.

FirstSolar, StockMarket, Earnings