/First%20Solar%20Inc%20logo%20and%20stock%20price-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
First Solar, Inc. (FSLR), headquartered in Tempe, Arizona, designs and manufactures solar modules. Valued at $25 billion by market cap, the company uses a thin film semiconductor technology to manufacture electricity-producing eco-efficient solar modules.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and FSLR fits right into that category, signifying its substantial size, stability, and dominance in the solar industry. It stands out for its operational efficiency and market demand for its products, reflecting its strong performance. The company is also a technological leader, with a record-breaking 23.1% research cell conversion efficiency, certified by the U.S. Department of Energy. Its advanced manufacturing process, enabling rapid solar module production, further strengthens its competitive edge in the solar industry.
Despite its widespread reputation, the solar titan has fallen 21.8% from its 52-week high of $306.77, which it hit on June 12. Shares of FSLR have dropped 8.2% over the past three months, underperforming the Technology Select Sector SPDR Fund’s (XLK) 5.2% decline over the same time frame.
In the longer term, FSLR shares rose 39.3% on a YTD basis and 37.9 over the past year, outpacing the XLK’s 13.9% return on a YTD basis and 29.8% over the past 52 weeks.
FSLR has experienced significant fluctuations recently but has been trading above its 50-day moving average since mid-September and over its 200-day moving average since late March, reinforcing the ongoing bearish price trend.
FSLR's strong price momentum stems from favorable regulatory developments and a growing optimism among investors regarding clean energy. The Inflation Reduction Act's tax credits for U.S.-made solar panels, coupled with tariffs on low-cost Chinese imports, have substantially bolstered First Solar's price performance.
FSLR stock jumped more than 15% on Sept. 11 due to a combination of positive market sentiment and supportive remarks from U.S. Vice President Kamala Harris during a recent presidential debate. Harris highlighted the importance of investing in diverse energy sources, including solar, to reduce reliance on foreign oil, which renewed investor optimism in the alternative energy sector.
Highlighting the contrast in performance, rival Sunnova Energy International Inc. (NOVA) has fallen 4.8% in the past 52 weeks and is down 19.7% on a YTD basis, lagging behind FSLR’s solid gains in the same time frames.
Given its outperformance compared to the broader tech sector, analysts are highly optimistic about FSLR’s prospects. The stock has a consensus rating of “Strong Buy” from the 31 analysts covering it, and the mean price target of $290.59 is a 21.1% premium from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
