Why First Solar (FSLR) Outpaced the Stock Market Today

In the latest trading session, First Solar (FSLR) closed at $196.04, marking a +1.89% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.76%.The largest U.S. solar company's shares have seen a decrease of 20.4% over the last month, not keeping up with the Oils-Energy sector's loss of 11.32% and the S&P 500's gain of 1.47%.The investment community will be paying close attention to the earnings performance of First Solar in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. The company is predicted to post an EPS of $3.16, indicating a 26.4% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 34.57% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.39 per share and a revenue of $4.43 billion, indicating changes of +73% and +33.58%, respectively, from the former year.Investors might also notice recent changes to analyst estimates for First Solar. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.69% downward. First Solar is holding a Zacks Rank of #3 (Hold) right now.In terms of valuation, First Solar is presently being traded at a Forward P/E ratio of 14.36. This indicates a premium in contrast to its industry's Forward P/E of 13.08.We can also see that FSLR currently has a PEG ratio of 0.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Solar industry stood at 1.02 at the close of the market yesterday.The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 42% of all industries, numbering over 250.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.You can find more information on all of these metrics, and much more, on Zacks.com.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks