Is First Solar (FSLR) Stock Due for an Extended Rebound?

Despite spiking as much as +6% in Monday’s trading session, First Solar FSLR stock is still 37% from its 52-week high of over $300 a share last June.That said, shares of the largest solar company in the United States have now risen +9% in January and investors may be wondering if an extended rebound is in store for FSLR.Image Source: Zacks Investment Research Lower Market Sentiment for FSLR Although First Solar is one the world’s largest providers of solar panels, market sentiment has been wayward for FSLR after the company came short of its Q3 top and bottom line expectations in October.Third quarter sales of $887.67 million rose 10% from a year ago but noticeably missed estimates of $1.06 billion. On the bottom line, Q3 EPS of $2.91 spiked 16% year over year but fell short of expectations of $3.10.Image Source: Zacks Investment Research Of course, First Solar’s Q4 results on February 25 will be critical in the hopes of regaining investor sentiment. Based on Zacks estimates, First Solar’s Q4 sales are expected to increase 27% to $1.47 billion with EPS projected to soar 47% to $4.77. However, the Zacks ESP (Expected Surprise Prediction) does indicate First Solar could once again miss EPS expectations with the Most Accurate Estimate having Q4 earnings pegged at $4.57 per share and 4% below the Zacks Consensus.Image Source: Zacks Investment Research Tracking First Solar’s Growth Trajectory First Solar’s immense probability continues to separate the company from many of peers including domestic competitor Sunrun RUN. With Sunrun still striving to cross the probability line, First Solar’s annual earnings are now slated to expand 69% in fiscal 2024 to $13.13 per share versus EPS of $7.74 in 2023. More impressive, FY25 EPS is projected to climb another 54% to $20.14 based on Zacks estimates.Notably, First Solar is expecting high double-digit sales growth in FY24 and FY25 as well with projections edging north of $5 billion.Image Source: Zacks Investment Research Monitoring First Solar’s Valuation Alluding to the notion that an extended rebound could be in store for First Solar’s stock at some point is that FSLR trades at 9.2X forward earnings. This is a sharp discount to the benchmark S&P 500’s 22.2X and nicely beneath its Zacks Solar Industry average of 15.2X.Image Source: Zacks Investment Research Bottom Line For now, First Solar stock lands a Zacks Rank #3 (Hold). While there may still be better buying opportunities ahead, longer-term investors could certainly be rewarded with the Average Zacks Price Target of $275.43 a share suggesting 48% upside from current levels.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Report Sunrun Inc. (RUN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks