Latest news with #FSLR
Yahoo
2 days ago
- Business
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First Solar Gains 29.3% in Past 3 Months: Should You Buy the Stock?
Shares of First Solar Inc. FSLR have gained 29.4% in the past three months, outperforming the Zacks solar industry's growth of 28.5%, as well as, the Zacks Oil-Energy sector's increase of 13.5% and the S&P 500's rise of 18.9%. Image Source: Zacks Investment Research A similar stellar performance has been delivered by other solar stocks, such as Canadian Solar (CSIQ) and SolarEdge Technologies (SEDG), which have outperformed the industry in the past three months. Shares of CSIQ have gained 86.2%, while shares of SEDG have gained 113.9%. With FSLR's robust performance on the bourses, some investors may consider buying the stock right away. However, before taking any decision, it is important to understand the reasons behind this robust performance. Does the company have what it takes to continue this momentum, or are there risks that may affect its future growth? The idea is to help investors make a more insightful decision. FSLR's robust performance on the bourses seems to have been influenced by its aggressive expansion plans. As the largest solar PV manufacturer in the Western Hemisphere, First Solar has been steadily increasing its production capacity to support future sales growth to meet the rapidly expanding global solar demand. In the second quarter of 2025, it started commercial operations at its fourth U.S. manufacturing facility. This apart, First Solar's ambitious plan to add around four gigawatts (GW) of new capacity, including a fifth U.S. facility, is expected to start operations in the second half of 2025 and thereby achieve an annual manufacturing capacity of more than 25 GW by the end of 2026, should bode well for its long-term performance. Also, a recent upgrade in this stock's target price may have added impetus to investors' confidence and thereby bolstered FSLR's share price. In the first week of this month, Royal Bank of Canada raised their price target for FSLR from $188.00 to $200.00, with an outperform rating on the stock currently per a report by MarketBeat). Looking ahead, FSLR's growth prospects are backed by its ongoing capacity expansion and strong demand outlook for solar energy, both of which are expected to drive its performance in the coming years. The company aims to sell 15.5-19.3 GW of solar modules (by 2025-end), which should bolster its revenue stream. As of March 31, 2025, First Solar entered into contracts with customers for the future sale of 66.1 GW of solar modules for an aggregate transaction price of $19.8 billion, which it expects to recognize as revenues through 2030. Solid revenue growth should duly aid the company's bottom line as well. In line with this, the Zacks Consensus Estimate for FSLR's long-term (three to five years) earnings growth rate is pegged at 34.5%, better than the industry's growth rate of 23.1%. However, First Solar experienced manufacturing issues related to certain Series 7 modules produced in 2023 and 2024. As a result, the company incurred notable warranty charges in recent quarters. Going forward, warranty-related expenses linked to these Series 7 modules are expected to total between $56 million and $100 million, which could negatively impact its operational performance. Additionally, in April 2025, the U.S. President announced a 10% 'baseline' tariff on most trading partners, including Vietnam, India and Malaysia, along with increased tariffs on select countries. Although the higher tariffs have been paused for 90 days, the 10% tariff remains applicable to most nations. Since First Solar manufactures modules in these regions, the tariffs could increase production costs, affect international operations and weigh on overall results. The company has already revised its 2025 guidance downward to reflect the anticipated impact of these tariff changes. Now let's take a quick sneak peek at its near-term estimates to see what trend they reflect. The Zacks Consensus Estimate for FSLR's 2025 and 2026 revenues indicates a solid improvement of 18.2% and 18.3%, respectively, from the prior-year levels. The estimate for its earnings also indicates a year-over-year improvement. Image Source: Zacks Investment Research However, the downward revision in its near-term quarterly and annual (except 2026) estimates over the past 60 days indicates investors' declining confidence in the stock's earnings generation capabilities. Image Source: Zacks Investment Research FSLR shares are expensive on a relative basis, with its forward 12-month Price/Sales (P/S F12M) being 3.16X compared with its industry average of 1.27X. Image Source: Zacks Investment Research Its industry peers, CSIQ and SEDG, are trading at a discount in comparison with FSLR. CSIQ is trading at a P/S F12M of 0.13X, while SEDG is trading at a P/S F12M of 1.30X. Investors interested in FSLR should wait for a better entry point, considering its premium valuation, downward revision in near-term earnings estimates and risks associated with tariff imposition. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, taking into account its upbeat sales estimates, solid stock price performance and long-term growth prospects. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Why First Solar (FSLR) Shares Are Getting Obliterated Today
Shares of solar panel manufacturer First Solar (NASDAQ:FSLR) fell 5.5% in the afternoon session after continued weakness in the clean energy sector driven by concerns over new tariffs and changes to government subsidies. The slide in clean energy stocks, including First Solar, comes as investors weigh the impact of President Trump's announcement of new tariffs of 25%–40% on 14 countries. Although the start date was moved to August 1, the policy creates uncertainty for solar panel importers. Adding to investor concerns, a new domestic policy bill is expected to end key subsidies for the clean energy sector. This combination of potentially higher costs from tariffs and the removal of government financial support is pressuring the outlook for solar companies. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy First Solar? Access our full analysis report here, it's free. First Solar's shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. First Solar is down 10.4% since the beginning of the year, and at $166.90 per share, it is trading 34.7% below its 52-week high of $255.75 from September 2024. Investors who bought $1,000 worth of First Solar's shares 5 years ago would now be looking at an investment worth $2,877. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
08-07-2025
- Business
- Yahoo
What to Expect From First Solar's Next Quarterly Earnings Report
Tempe, Arizona-based First Solar, Inc. (FSLR) is a solar technology company. Valued at a market cap of $19 billion, the company manufactures and sells photovoltaic (PV) solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It also designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. The company is scheduled to announce its fiscal Q2 earnings for 2025 on Tuesday, Jul. 29. Prior to this event, analysts project this solar technology company to report a profit of $2.63 per share, down 19.1% from $3.25 per share in the year-ago quarter. The company has missed Wall Street's bottom-line estimates in three of the last four quarters, while surpassing on another occasion. Its earnings of $1.95 per share in the previous quarter fell short of the consensus estimates by 22%. This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now? Why Alibaba Stock Looks Like a Screaming Buy After Falling 27% From Its 2025 Highs 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect First Solar to report EPS of $14.50, up 20.6% from $12.02 in fiscal 2024. Furthermore, its EPS is expected to grow 53.2% year-over-year to $22.21 in fiscal 2026. First Solar has declined 20.3% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 11.9% return and the Technology Select Sector SPDR Fund's (XLK) 9.5% uptick over the same time frame. On Apr. 29, First Solar reported disappointing Q1 results, leading to an 8.3% drop in its share price in the following trading session. The company generated revenue of $844.6 million, marking a 6.4% increase from the prior-year quarter but falling slightly short of analyst expectations. Moreover, its net income declined 11.4% year-over-year to $1.95 per share and missed the consensus estimates by a significant 22%. Profitability was pressured by higher costs of sales and operating expenses, along with operational challenges stemming from a shifting geographic sales mix and ongoing changes in industry policies. In addition, uncertainty surrounding evolving U.S. tariffs and their potential impact on customer demand and production planning led the company to sharply lower its fiscal 2025 guidance. It now expects net sales to be between $4.5 billion and $5.5 billion, and anticipates EPS in the range of $12.50 to $17.50. Nonetheless, despite these short-term challenges tied to the new tariff environment, the company remains optimistic about the long-term growth prospects of the solar industry, particularly in its core U.S. market, and believes it is well-positioned to capitalize on future demand. Wall Street analysts are highly optimistic about FSLR's stock, with a "Strong Buy" rating overall. Among 30 analysts covering the stock, 24 recommend "Strong Buy," two indicate "Moderate Buy," three suggest "Hold,' and one advises a 'Strong Sell' rating. The mean price target for FSLR is $203.01, which indicates a 14.7% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
06-07-2025
- Business
- Yahoo
First Solar, Inc. (FSLR) Is Benefiting From Domestic Production, Says Jim Cramer
We recently published . First Solar, Inc. (NASDAQ:FSLR) is one of the stocks Jim Cramer recently discussed. First Solar, Inc. (NASDAQ:FSLR) is an American solar energy company that makes and sells solar panels. The firm's shares have experienced significant volatility in 2025 and are flat year-to-date. First Solar, Inc. (NASDAQ:FSLR)'s stock gained an unbelievable 52% in May after a House panel surprised investors and left a lot of tax credits in place for solar energy. However, the shares sank by 18% in June after a Senate committee proposed ending credits for solar firms in 2028. Yet, the shares have gained 29% since late June, which Cramer believes might be influenced due to the firm's domestic manufacturing exposure: 'First Solar, which was up a lot yesterday because they make it here.' A solar panel farm with an orange sky illuminating the vast landscape. The CNBC TV host had last discussed First Solar, Inc. (NASDAQ:FSLR) in January. Here's what he said: 'It is a very inexpensive stock. I'm telling you, I'm still reeling from the fact that NXT, Nextracker… actually reported an upside surprise tonight. And… when I look into that and it says that it's good for solar, I will tell people who belong to the Charitable Trust, to CNBC Investing Club, whether it's time to get a little more aggressive on solar.' While we acknowledge the potential of FSLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
03-07-2025
- Business
- Yahoo
This 1 Solar Stock Could Be a Rare Winner from Trump's Big Beautiful Bill
Solar stocks have faced an uphill battle in 2025 as President Donald Trump's administration has sought to remove clean energy tax credits and redirect attention and funding from wind, solar, and hydrogen initiatives. These actions against clean energy mark a stark difference from the landscape under former President Joe Biden and have culminated in Trump's 'One Big Beautiful Bill Act,' his tax-and-spending bill. Nat-Gas Prices Rebound on the Outlook for a Smaller-Than-Average EIA Inventory Build Crude Oil Prices Supported by Middle East Tensions Energy Demand Optimism Pushes Crude Prices Sharply Higher Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Solar stocks are largely expected to suffer as a result of the legislation, which passed the House of Representatives today following a Senate vote earlier this week. But First Solar (FSLR) may be an unlikely beneficiary. Thanks to First Solar's vertically integrated, U.S.‑based production, it qualifies for a carve‑out in the bill that preserves tax credits on certain American‑made components of larger renewable energy projects. Wolfe Research says this appears 'intended' to help First Solar. Based in Tempe, Arizona, First Solar is America's leading utility-scale solar manufacturer, known for its U.S.-based supply chain and thin-film technology. Valued at $18.3 billion by market cap, shares of FSLR have recently recovered their year-to-date losses and are now up 5% for 2025. Shares initially struggled ahead of the phase out of lucrative tax credits, tariffs on imported solar panel components, and a demand slowdown amidst higher financng costs. However, FSLR exhibits an attractive valuation profile. Its price-earnings ratio is 11.2x, a 53% discount compared to the sector median, indicating the stock is relatively cheap. The 'One Big Beautiful Bill Act' introduces sweeping changes that are expected to send shockwaves through the solar industry. The version passed today by the House and headed for Trump's signature eliminates the residential solar tax credit after this year. Commercial solar projects leveraging the 45Y or 48E tax credits must have started construction by 2026 in order to be eligible or be in service by the end of 2027 if construction starts later. Together, these changes create significant headwinds for solar developers, potentially rendering projects after 2027 economically unfeasible. However, First Solar might have a better shot at survival than its peers. Its core business serves the commercial market, so the immediate phase out of the residential solar tax credit is less impactful. And, an update this week in the legislation makes 'subcomponents in renewable projects eligible for tax credits if they are produced in the same facility as the larger component into which they are integrated and at least 65% of the total costs of the larger component are domestic.' First Solar satisfies these requirements, and is in a better position than rivals who source components from China. These imported components will face an additional new excise tax, further hampering their finances. In its first quarter of 2025, sales rose 6.4% to $844 million. However, revenue missed the consensus estimate for $847.9 million. First Solar reported net income of approximately $209.5 million, or $1.95 in earnings per share, marking an 11% year-over-year drop. The company said new tariffs presented 'near-term challenges' that impacted its business. As a result, the company lowered its full-year outlook. The company now expects revenue of $4.5 billion to $5.5 billion, down from $5.3 billion to $5.8 billion. It now expects operating income of $1.45 billion to $2 billion, down from $1.95 billion to $2.35 billion. Investors should note that the tax-and-spending bill had not been passed at the time this guidance was issued, and the new legislation could force the company to further revise its outlook for the year. Wall Street analysts remain confident about First Solar's growth prospects, assigning the stock a consensus rating of 'Strong Buy.' Among the 31 analysts covering the company, 25 rate it as a 'Strong Buy,' two as a 'Moderate Buy,' three as 'Hold,' and one as a 'Strong Sell.' The average price target of $205 implies upside potential of 10.8% from current levels. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
