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2 days ago
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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
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2 days ago
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Solar stocks sent reeling by Congress
Solar stocks sent reeling by Congress originally appeared on TheStreet. The solar industry has been trading jabs all year, but Washington may have delivered the knockout punch. Consequently, solar stocks have taken their investors on a steep slide, with the trend pointing mostly south. 💵💰💰💵 For the better part of the year, Washington's response to any clean energy talk has been lukewarm (at best). Unsurprisingly, the ride has been rough, with bankruptcies and brutal sell-offs. Funny how the 'Big Beautiful' bill could throw a wrench in what otherwise was a promising trend. It's no secret that the solar industry, in general, relies on fragile economics. Tax credits aren't just niceties; they're essentially the linchpins underpinning the entire solar value chain. Take them out of the equation, and everyone from rooftop solar financiers to utility suppliers loses demand, cost advantages, and bidding power. For residential solar businesses like Enphase () and Sunrun () , the 30% federal Investment Tax Credit, or ITC, makes its systems affordable enough to spark demand. Additionally, it boosts fuel install volumes, software fees for Enphase, and higher leasing cash flows for Sunrun. Strip that away, and its returns shrink dramatically, as do the growth stories. Similarly, on the utility side, First Solar () leans on Production Tax Credits, or PTCs, and transferable ITCs to score big utility-scale deals. PTCs boost returns over a ten-year period, while transferable credits help developers unlock upfront cash flow. That combo fattens the margins on its thin-film tech and makes contracts much more attractive. That said, it's worth understanding how these solar bellwethers actually make money because it's not always straightforward. Enphase sells microinverters that sit under rooftop panels, turning sunlight into usable home power. Add batteries and monitoring software, and it's a hardware-plus-subscription play. Sunrun takes a different approach, think of it as a solar utility. It leases panels and batteries to homeowners, collecting monthly payments while handling all the upkeep. Nevertheless, it's a lot more sensitive to interest rates and policy shifts. First Solar, on the flipside, plays at the utility level. It builds massive solar farms with its low-cost, U.S.-made thin-film panels while profiting from one-time sales and ongoing maintenance deals. More On Solar: First Solar Stock Falls. Wall Street Is Split on Fate of Renewables. Macy's is selling a 'well-designed' $399 solar panel for $208 that shoppers say is easy to set up Amazon is selling 'exceptional' $70 outdoor solar lights for just $35, and shoppers say they're 'the best' What ties it all together? Tax credits. ITCs and PTCs help drive demand, improve margins, and unlock greater financing. Solar stocks have nosedived, post-market Monday, June 27, and regular trading Tuesday, June 18, after Senate Republicans proposed changes to President Trump's tax and spending bill. The amendments threaten to phase out solar and wind tax credits fully by 2028. The shift will likely send capital fleeing from solar to sectors with longer government backing. Even First Solar stock, arguably more protected due to its U.S. footprint, has taken a massive beating. Solar Energy Industries Association President and CEO Abigail Ross Hopper remarked. "This bill makes it harder to do business in America for U.S. manufacturers and small businesses and will undoubtedly lead us to an energy-strained economy with higher electric bills over the next five years." Needless to say, the timing couldn't have been any worse for solar stocks. Sunnova's recent Chapter 11 filing landed right when the residential solar space wobbled. With a $9–11 billion debt load and just $13.5 million in cash, the Houston-based installer laid off 700 employees and scrambled to sell assets for some relief. Sunnova wasn't alone, though, with Solar Mosaic also filing for bankruptcy, exposing cracks in the solar model. Then came California's controversial AB 942 bill, gutting solar resale economics. The bill forces homes with solar to switch to the NEM 3.0 net metering plan, slashing credit payouts by 80% whenever ownership changes. Hence, it's a one-two punch for an industry already on its knees. At the time of writing, the Invesco Solar ETF () is down 10% in regular trading on Tuesday, breaking below the $32 level and extending its six-month slide. Enphase has nosedived 26% so far today, bringing its losses to over 52% in six months. First Solar shed 18%, down more than 24% over the 6-month period. SunRun fared the worst, crashing 42% to $5.63 and flirting with penny stock territory. Moreover, it's now down over 54% in just a month. Solar stocks sent reeling by Congress first appeared on TheStreet on Jun 17, 2025 This story was originally reported by TheStreet on Jun 17, 2025, where it first appeared. 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
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2 days ago
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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
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3 days ago
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Solar stocks are plummeting as the Senate version of Trump's 'big beautiful bill' hits clean energy
Solar stocks tumbled on Tuesday, with Solar Edge and First Solar down sharply. The Senate version of the GOP budget bill keeps cuts to clean energy in place. The new government policy would phase out solar and wind energy tax credits. Solar energy stocks plunged for a second day on Tuesday, on news that the Senate version of the budget bill retains cuts to renewable energy tax credits. A US Senate panel has proposed fully phasing out all tax credits for solar and wind energy within the next three years. The development swiftly sent solar energy stocks into free fall, including First Solar, SolarEdge and Sunrun. First Solar fell as much as 22%, while SolarEdge declined as much as 42%, and Sunrun dropped 44%. The proposed tax policy changes are part of the Senate's version of President Donald Trump's "One Big Beautiful Bill Act," a budget package that was recently passed in the House of Representatives. Under the current policy, passed during the Biden administration's Inflation Reduction Act in 2022, subsidies for solar and wind energy would remain in place until 2032. But the new vision outlined by Republican officials includes granting 100% of the tax credits to hydropower, nuclear, and geothermal energy, areas of the energy sector that the Trump administration favors. Republican Senator Mike Crapo, who serves as founder and co-chairman of the Senate Nuclear Cleanup Caucus, has released a text summary of the bill, which promises to eliminate billions of dollars of clean energy subsidies, describing them as unnecessary and highlighting the need to prioritize other energy sources. These changes have been met with blowback from the clean energy industry, whose advocates have touted the economic consequences of eliminating solar and wind subsidies. This list includes Ari Matusiak, CEO of clean energy nonprofit Rewiring America, who has stated that "Eliminating the tax credits that save families money is a profound mistake." Ed Mills, a managing director and Washington policy analyst for Raymond James, notes that "While the Senate proposal still represents a material negative for renewable energy investment/names, it is a significant improvement from the House." So far, though, the "material negative" seems to be outweighing any improvements for solar stocks. And the corner of the energy sector could have further to fall if the Senate proposal moves forward. It stands to not just eliminate billions of dollars in subsidies that have allowed the renewable power industry to grow, but to provide them to companies that produce competing energy sources. Read the original article on Business Insider 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
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3 days ago
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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
