This story originally appeared on Zacks
First Solar (FSLR) closed the last trading day at $83.02, up 0.29% from the previous trading session. That change outpaced the S&P 500’s gain of 0.08% on the day. Meanwhile, the Dow Jones lost 0.56%, and the tech-heavy Nasdaq lost 0.42%.
As of today, shares of the largest US solar energy company have lost 9.23% in the last month. At the same time, the oil and energy sector rose 10.22%, while the S&P 500 rose 0.22%.
Wall Street will be looking for the positivity from First Solar as it approaches the next earnings report date. In this report, analysts expect First Solar to report earnings of $1.07 per share. This would represent a year over year decline of 0.93%. Meanwhile, our latest consensus estimate is $906.43 million in revenue, an increase of 48.78% over the prior year quarter.
Investors may also notice recent changes in analyst estimates for First Solar. These recent reviews tend to reflect the evolving nature of short-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% per year since 1988. In the past 30 days, Our EPS forecast has moved 1.35%. First Solar currently has a Zacks No. 3 (Hold) rating.
Looking at the valuation, First Solar currently has a forward P/E ratio of 39.65. For comparison, its industry has an average forward P/E of 39.13, which means First Solar is trading at a premium to the group.
We can also see that the FSLR currently has a PEG ratio of 3.67. The price-earnings-growth (PEG) ratio is similar to the widely used price-to-earnings (P/E) ratio, but this metric also takes into account a company’s expected earnings growth rate. Solar stocks have, on average, a price-to-commission ratio of 1.88 based on yesterday’s closing prices.
The solar energy industry is part of the oil and energy sector. The industry currently has a Zacks Industry Rating of 189, placing it in the lowest 26% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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