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Why the Market Dipped But First Solar (FSLR) Gained Today

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The latest trading session saw First Solar (FSLR - Free Report) ending at $235.12, denoting a +0.29% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.04%.

The largest U.S. solar company's shares have seen an increase of 8.84% over the last month, surpassing the Oils-Energy sector's gain of 0.85% and the S&P 500's gain of 1.25%.

The investment community will be closely monitoring the performance of First Solar in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. The company's upcoming EPS is projected at $3.25, signifying a 30% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.11 billion, indicating a 38.74% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.57 per share and a revenue of $4.47 billion, indicating changes of +75.32% and +34.83%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for First Solar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% lower within the past month. First Solar is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that First Solar has a Forward P/E ratio of 17.28 right now. Its industry sports an average Forward P/E of 13.82, so one might conclude that First Solar is trading at a premium comparatively.

It is also worth noting that FSLR currently has a PEG ratio of 0.4. 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. Solar stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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