Latest news with #FSLR
Business Insider
12 hours ago
- Business
- Business Insider
Policy Shift Cannot Stop First Solar's (FSLR) Near-Term Momenum
First Solar (FSLR) is one of the most compelling investment opportunities I see right now—and I'm a shareholder for two key reasons. First, the medium-term demand outlook is already well-defined, providing strong visibility. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Second, with recent policy shifts from the 'Big Beautiful Bill,' near-term demand could surge as developers rush to secure projects before tax credits begin phasing out in 2028. I view this as a high-alpha, 12-month cyclical play, with recent volatility being mere noise. The stock has taken a severe 18% hit over the past week. My conviction remains strong—I'm staying bullish on First Solar. Tax Credits Get Phased Out, but First Solar Still Thrives Previously, utility-scale solar projects qualified for a 30% tax credit through 2032, but that timeline has now been significantly accelerated. Starting in 2026, new projects will receive just 60% of the 30% credit (an effective 18%). By 2027, that drops to 20% of the 30% credit (just 6%), and by 2028, the credit is eliminated entirely. That said, developers can still lock in higher credits by starting construction early, and the transferability of tax credits remains intact. Importantly, Section 45X credits remain fully available through 2029, providing a meaningful financial cushion. As a result, two key dynamics emerge. First, near-term demand for First Solar panels is likely to spike, followed by a sharp decline. Next, the 45X cushion could leave First Solar in a stronger short-term position than it was before the policy change. While First Solar stock dropped nearly 20% following the broad solar selloff triggered by the 'Big Beautiful Bill,' that decline was modest compared to residential-focused names like Enphase (ENPH) and Sunrun (RUN), which were hit harder due to the immediate loss of residential solar credits. Looking ahead, some medium-term turbulence is likely to occur. But in the near term, the investment case for First Solar remains strong, and in my view, the current pullback offers an attractive entry point for potential market-leading returns by 2026. 12-Month $290 Price Target in Sight Following the recent sell-off, First Solar is now trading below its 200-week moving average, presenting what I believe is a rare and compelling accumulation opportunity. With the near-term outlook intact—and arguably strengthened by the coming tax credit phase-out in 2027/2028, this sets up what I view as a high-conviction 12-month trade. Yes, solar stocks are notoriously volatile, but with the major impacts of the 'Big Beautiful Bill' now priced in, the focus shifts to execution and sentiment stabilization. It's hard to see what additional policy shocks could further destabilize the sector in the near term. In my bull-case scenario, I project $25 in normalized EPS for Fiscal 2026 and a non-GAAP P/E multiple of 15, implying a potential share price of $375. That said, I'm setting a more conservative take-profit target at $290, reflecting cautious optimism while aiming for a strong return. From current levels around $145, that would represent a 100% gain—a trade setup that's hard to beat in today's market. First Solar May Consolidate the Market in This Climate Stricter Foreign Entities of Concern (FEOC) rules under the 'Big Beautiful Bill' are set to strongly benefit U.S.-based manufacturers like First Solar. Its vertically integrated, China-independent Cadmium Telluride (CdTe) technology gives it a unique edge in meeting domestic content requirements and navigating tighter import restrictions. These policy shifts are likely to lead to industry consolidation, with First Solar emerging stronger as a result. While the path forward may involve volatility, the company's scale, infrastructure, and reputation position it to outlast and outperform smaller, margin-strained competitors. As weaker players exit or downsize, First Solar could gain pricing power and further expand its market share over the medium term. Is First Solar a Good Stock to Buy Now? Wall Street maintains a Strong Buy consensus on First Solar, with 23 Buy ratings, 3 Holds, and zero Sells. The average price target sits at $210, implying a 46% upside over the next 12 months. The most bullish analyst target is $275, which closely aligns with my own independent target of $290. Given the evolving policy landscape, I plan to reassess my position around the $250 level, to trim depending on how market sentiment unfolds in the coming months. The Market Is Nowhere Near Done with First Solar While cyclicality and volatility come with the territory for First Solar—and solar stocks in general—the near-term profit potential remains compelling. Looking further out, it's clear that solar demand isn't going anywhere. Tax incentives may decline, but fossil fuel supplies are finite, and the shift toward renewable energy is inevitable. First Solar is positioning itself now to become America's most dependable solar energy asset, and that long-term vision keeps me bullish. While I'll continue to trade around the cycles like a pro, my core conviction in First Solar's future remains strong.
Yahoo
2 days ago
- Business
- Yahoo
First Solar Plunges 21.2% in Past 6 Months: How to Play the Stock?
Shares of First Solar Inc. FSLR have plunged 21.2% in the past six months, underperforming the Zacks solar industry's decline of 19.3% as well as the broader Zacks Oil-Energy sector's growth of 5.3%. It also lagged the S&P 500's growth of 0.3%. Image Source: Zacks Investment Research On the contrary, other solar stocks, such as Canadian Solar CSIQ and SolarEdge Technologies SEDG, have outperformed the industry in the past six months. Shares of CSIQ have lost 7.8%, while shares of SEDG have gained 15%.With FSLR's weak performance on the bourses, some investors may consider buying the stock while it's cheap. However, before taking any decision, it is important to understand the reasons behind this dismal performance. Does the company have what it takes to bounce back, or are there risks that may affect its future growth? The idea is to help investors make a more insightful decision. FSLR's dismal performance on the bourses seems to have been influenced by its weak first-quarter 2025 results, recently imposed tariffs and manufacturing the company ended the first quarter on a dismal note, with its earnings per share going down 11.4% on a year-over-year basis. Its operating income also slid First Solar has been facing manufacturing issues affecting certain of its Series 7 modules manufactured in 2023 and 2024. This, in turn, has led the company to incur significant warranty charges in recent quarters. Looking ahead, warranty charges related to Series 7 manufacturing issues are estimated to result in total charges ranging between $56 million and $100 million in the near future. This, in turn, might adversely impact its operational in April 2025, the U.S. President announced a 10% 'baseline' tariff on most trading partners, including Vietnam, India and Malaysia, along with higher tariffs on select countries. While the higher tariffs were paused for 90 days, the 10% tariff remains in place for most countries. Since First Solar makes modules in these regions, the tariffs could raise costs, impact international operations and hurt overall operating results. The company has even lowered its 2025 guidance, taking into account the expected impact of the implementation of these new tariffs. As the largest solar PV manufacturer in the Western Hemisphere, First Solar continues to expand and invest in its manufacturing capacity, aiming to achieve sales growth in the coming quarters. Notably, the company began commercial operations at its fourth manufacturing facility in the United States in the second quarter of 2025. Moreover, it is currently in the process of expanding its manufacturing capacity by approximately four GW, including the construction of its fifth U.S. manufacturing facility, which is expected to commence operations in the second half of manufacturing capacity expansion plans should allow First Solar to maintain its position as the largest U.S. solar module manufacturer and boost its long-term operational line with this, the Zacks Consensus Estimate for FSLR's long-term (three to five years) earnings growth rate is pegged at 34.5%.However, the risks associated with the manufacturing issues of certain Series 7 Modules, as mentioned above, as well as the tariff impacts, might affect the company's performance in the near let's take a quick sneak peek at its near-term estimates to see if that reflects a similar trend. The Zacks Consensus Estimate for FSLR's 2025 and 2026 revenues indicates a solid improvement of 16.3% and 16.8%, respectively, from the prior-year levels. The same for its earnings also indicate a year-over-year improvement. Image Source: Zacks Investment Research However, the Zacks Consensus Estimate for FSLR's 2025 and 2026 earnings per share has moved down considerably in the past 60 days, indicating analysts' decreasing confidence in the stock's earnings-generating 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 2.92X compared with its industry average of 1.16X. Image Source: Zacks Investment Research Its industry peers, CSIQ and SEDG, are trading at a discount. CSIQ is trading at a P/S F12M of 0.10X, while SEDG is trading at a P/S F12M of 0.83X. Investors interested in FSLR should wait for a better entry point, considering its premium valuation, downward revision in earnings estimates and near-term risks associated with tariff those who already own this Zacks Rank #3 (Hold) stock may continue to do so, taking into account its upbeat sales estimates and long-term growth 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
3 days ago
- Business
- Yahoo
First Solar (FSLR) Fell by Over 12% This Week. Here is Why.
The share price of First Solar, Inc. (NASDAQ:FSLR) fell by 12.59% between June 10 and June 17, 2025, putting it among the Energy Stocks that Lost the Most This Week. A solar panel farm with an orange sky illuminating the vast landscape. First Solar, Inc. (NASDAQ:FSLR) is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules. First Solar, Inc. (NASDAQ:FSLR) plunged this week after it was revealed that the Senate version of President Trump's sweeping tax-and-spending bill has retained the cuts to renewable energy tax credits. The Senate committee's draft bill proposes cutting solar and wind incentives to 60% of their value in 2026 and ending them completely by 2028. With solar energy being First Solar's core business, the proposed legislation is a direct strike to the company. Following the recent downturn, the share price of First Solar, Inc. (NASDAQ:FSLR) has fallen by around 45% over the last year. While we acknowledge the potential of FSLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. 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
4 days ago
- Business
- Yahoo
First Solar (FSLR) Dips More Than Broader Market: What You Should Know
In the latest trading session, First Solar (FSLR) closed at $143.90, marking a -17.89% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.84%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.91%. Prior to today's trading, shares of the largest U.S. solar company had lost 1.8% was narrower than the Oils-Energy sector's loss of 0% and lagged the S&P 500's gain of 1.44%. The investment community will be closely monitoring the performance of First Solar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.63, marking a 19.08% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.01 billion, indicating a 0.34% upward movement from the same quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.5 per share and revenue of $4.89 billion. These totals would mark changes of +20.63% and +16.27%, respectively, from last year. Any recent changes to analyst estimates for First Solar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.31% downward. First Solar is holding a Zacks Rank of #3 (Hold) right now. Investors should also note First Solar's current valuation metrics, including its Forward P/E ratio of 12.09. This denotes a discount relative to the industry average Forward P/E of 18.72. It is also worth noting that FSLR currently has a PEG ratio of 0.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Solar industry stood at 0.69 at the close of the market yesterday. The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 29% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
4 days ago
- Business
- Globe and Mail
Why First Solar Stock Dived by Almost 18% Today
Many parts of the U.S. were sunny on Tuesday, but that happy situation didn't extend metaphorically to solar energy stocks. Quite a few took major hits that trading session on the latest developments in the legislative sphere. One of the industry's victims was First Solar (NASDAQ: FSLR), which went dim with a nearly 18% decline in its share price. That decline was far steeper than the 0.8% slip of the S&P 500 index that day. The tax credits might come to an abrupt end President Trump's One, Big, Beautiful Bill remains a massive bone of contention in Congress, and has been the subject of much criticism and debate among lawmakers. It's also undergoing change as Senators adjust it in an effort at compromise. On Tuesday, the Senate Finance Committee proposed speeding up the elimination of tax credits for solar and wind energy. Under current law, these do not expire until 2032; under the new proposal, they would be reduced by 60% next year and phased out entirely in 2028. This contrasts with the bill's stance on tax credits for other forms of energy, specifically nuclear, hydroelectric, and geothermal. In its current form, the proposed law would actually extend these credits to 2036. Bulls should remain bullish Although there is likely far more horse trading to come before the Senate finally settles on a form of the bill it can accept, renewable energy will almost certainly remain a target. Investors are right to be concerned about the effect on solar and other types of green energy companies, although this feels like an over-reaction -- the better companies in this segment should be able to adjust to the demise of tax credits. Should you invest $1,000 in First Solar right now? Before you buy stock in First Solar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Solar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
