First Solar reported quarterly earnings growth ranging from 104% to more than 1,000% over the past year. And revenue growth for the top-ranked solar equipment company ranged up to 45% during that time. On Thursday, the Relative Strength Rating for First Solar stock shot up 11 points from 66 to 77.
First Solar Stock Nears Key Benchmark
The upgraded 77 RS Rating shows that First Solar tops 77% of all stocks in IBD's database for price performance over the past year. That rise puts it just below a key benchmark. Market research shows that the best stocks typically have an RS Rating north of 80 as they begin their biggest runs. See if First Solar can continue to rebound and clear that threshold.
When To Sell Stocks To Lock In Profits And Minimize Losses
Lat quarter First Solar reported a 104% rise in earnings to $3.23 per share on a 25% hike in revenue to $1.01 billion. The prior three periods its EPS rose 643%, over 1,000% and 450%. Sales grew 27%, 16% and 45% during that time. Analyst consensus is for a 29% rise in earnings on a 38% jump in revenue this quarter.
As a result of its strong fundamentals First Solar stock has steadily risen in recent years. Shares of the Tempe, Ariz.-based company traded around 216 Thursday afternoon. That's about 67% up from a 129.22 low last November when the market was bottoming. And it's a whopping 659% higher than its Covid crash low of 28.47 in late March 2020.
Funds Mixed On First Solar
But First Solar's other ratings don't shine as brightly as they could. It has a strong 82 EPS Rating out of 99, putting it in the top 18% of stocks for recent and long-term earnings growth. But it also carries a so-so 78 Composite Rating. The best growth stocks have a 90 or better Composite.
Additionally, its Accumulation/Distribution Rating is C- on an A+ to E scale, showing that institutional investors like ETFs and mutual funds are selling slightly more of its shares than they're buying. On the bright side, the number of funds holding First Solar shares is on the rise. It was 2,289 in June, up from 2,136 in March and 2,079 in December.
First Solar holds the No. 1 rank among its peers in the 29-stock Energy-Solar industry group. Sunrun and Sunnova Energy International are also among the group's highest-rated stocks.
The exclusive Relative Strength Rating from Investor's Business Daily identifies share price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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