The July 7th Trump Executive Order on eliminating IRS tax credits does not include First Solar's Section 45X for now. The extended reciprocal tariff deadline into early August renews tariff risks, and I expect potential trade deals could still maintain a higher tariff rate, pressuring margins. 2Q FY2025 earnings could face added pressure on gross margin and EPS after Trump raised steel and aluminum tariffs to as much as 50% on June 4th.
The One Big Beautiful Bill (OBBB) Act is now law, and with it come several new rules and rollbacks that could weaken the clean energy industry in the U.S. While the bill's primary focus has been tax cut extensions, the legislation also eliminates many incentives for solar power, especially those in residential areas.
First Solar (FSLR) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
FSLR is ramping up investment in perovskite tech with a new R&D line and aims to scale high-efficiency thin-film solar panels.
First Solar stands out as a major beneficiary of the new Senate energy bill, thanks to its U.S.-centric manufacturing and unique cadmium-telluride technology. The company boasts a massive 66.3 GW project backlog, aggressive U.S. capacity expansion, and is well-insulated from policy and supply chain headwinds. FSLR trades at a significant discount to its peers, offering a strong margin of safety, with intrinsic value estimates well above current prices.
In the latest trading session, First Solar (FSLR) closed at $177.06, marking a -4.31% move from the previous day.
Major U.S. equities indexes pushed higher Thursday in a half-day of trading as the nation geared up for Independence Day celebrations over the three-day weekend.
First Solar (FSLR) concluded the recent trading session at $162.96, signifying a -1.56% move from its prior day's close.
Zacks.com users have recently been watching First Solar (FSLR) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
First Solar (NASDAQ: FSLR) has experienced a 14% loss year-to-date in the past week, significantly trailing the broader market. However, beneath this decline lies a more complex story: evolving energy policy, solid fundamentals, and a valuation that may entice long-term investors willing to accept some volatility.
The potential policy headwinds from the OBBBA related to solar power are real in the long term, but ironically they could boost near-term returns and allow First Solar to dominate. I'm not naïve about the fact that there will be a cyclical downturn eventually, but I'm eyeing up a $290 price within the next 12 months. At $250, I'll reassess. Solar power is going to rise in cycles. It's the most important energy asset of the modern age, and First Solar will be front and center in the U.S.
Investors interested in FSLR stock should wait for a better entry point, considering its premium valuation and downward revision in near-term earnings estimates.