First Solar stock bucks the trend of the solar industry.
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.
First Solar's results are generally in line with our expectations. The business is protected by the large backlog. We expect IRA 45x payments to start in 2025, which will have a positive impact on the balance sheet. Management has mentioned a potential IRA cut for the first time, which is a significant risk for the company at all levels.
Investors should wait for a better entry point for First Solar (FSLR), considering its premium valuation compared to other solar stocks, despite its solid year-over-year returns.
Weakness is an opportunity with solar stocks. Granted, there have been concerns that a Trump presidential win could derail clean energy stocks.
First Solar is a leading American solar manufacturer with facilities in multiple states and countries. Despite the stock pullback, the company continues to exceed earnings expectations due to the benefits of the Inflation Reduction Act. The probability of IRA repeal affecting stock price is overpriced, creating buying opportunity with potential mispricing.
The invention of clean energy has given many hope that it could be a future solution to nonrenewable energy sources and less pollutant energy production. Yet, the reality remains that each year the federal government spends billions of dollars to subsidize the industry.
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.
Renewable energy stocks haven't been able to withstand the market pressure and have shown high volatility over the past few quarters. Besides the surplus inventory, the political environment and macroeconomic situations have led to a profit drop.
FSLR is expanding U.S. manufacturing capacity and benefiting from regulatory credits, positioning it as a key player against Chinese competitors and enabling strong fiscal 2024 and 2025 estimates. Attractive valuation with a forward PEG ratio of 0.46 and a P/E of 15.7, plus strong revenue growth. Anticipated market cap of $33B in 12 months, suggesting 45% stock growth. Risks include Chinese competition, potential U.S. policy changes, and supply chain disruptions. Despite these, FSLR remains a Strong Buy due to strategic growth and regulatory support.
The explosion of artificial intelligence has made it quite difficult to find high-growth stocks trading at fair value. Chip stocks provide an excellent example of this truth, but it's widely applicable to all things tech and high growth currently.
First Solar is reporting great profits, but most of what's earned is from subsidies.