Bear Of The Day: First Solar (FSLR)

First Solar (FSLR) is a Zacks Rank #5 (Strong Sell) after recently missing the Zacks Consensus Estimate. The stock has a Zacks Style Score for Value of C and an A for Growth.  This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.Description                                              First Solar, Inc. is a solar technology company, which engages in the provision of solar modules. It is involved in the design, manufacture, and sale of cadmium tellurid (CdTe) solar modules, which convert sunlight into electricity. The company was founded by Michael J. Ahearn in 1999 and is headquartered in Phoenix, AZ.Earnings HistoryWhen I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.In the case of First Solar (FSLR) I see the company has beaten the Zacks Consensus Estimate in one of the last four quarters. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.The most recent earnings report from First Solar (FSLR)  saw the company post $4.84 in EPS when the Zacks Consensus Estimate was calling for $5.22.  That 38 cent miss translates to a -7.28% negative earnings surprise.Earnings Estimate RevisionsThe Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.  For First Solar (FSLR)  I see annual estimates for next year moving lower of late.The current fiscal year consensus number has slid from $23.36 to $18.57 over the last 60 days. The next fiscal year has also dropped from $29.52 to $25.23 over the last 60 days.Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions.  That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Solar, Inc. (FSLR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks