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First Solar, Inc. (FSLR), headquartered in Tempe, Arizona, designs and manufactures solar modules. Valued at $20.2 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. The company distinguishes itself through exceptional operational efficiency and robust market demand for its products, underscoring its strong performance.
Despite its widespread reputation, the solar titan has fallen 39.9% from its 52-week high of $306.77, which it hit on June 12. Shares of FSLR have dropped 23.8% over the past three months, compared to the Invesco Solar ETF (TAN) 19.1% decline over the same time frame.
In the longer term, FSLR shares rose 7% on a YTD basis and 11.1% over the past year, outpacing the TAN’s 37.2% plunge on a YTD basis and 33.7% fall over the past 52 weeks.
FSLR has experienced significant fluctuations recently and has been trading under its 50-day and 200-day moving averages since the start of this month, indicating a bearish trend ahead.
Shares of First Solar dropped over 1% following its Q3 earnings release on Oct. 29. Despite achieving a notable 10.8% year-over-year increase in net sales to $887.7 million, the company fell significantly short of Wall Street’s revenue expectations. Adding to investor concerns, First Solar revised its full-year net sales guidance downward to a range of $4.1 billion to $4.3 billion, compared to its earlier projection of $4.4 billion to $4.6 billion.
Highlighting the contrast in performance, rival Sunnova Energy International Inc. (NOVA) has fallen 72.5% in the past 52 weeks and is down 76.3% on a YTD basis, lagging behind FSLR’s modest gains in the same time frames.
As a result, analysts are highly optimistic about FSLR’s prospects. The stock has a consensus rating of “Strong Buy” from the 34 analysts covering it, and the mean price target of $277.73 implies a robust 50.7% premium from current price levels.
