Regardless of spiking as a lot as +6% in Monday’s buying and selling session, First Photo voltaic FSLR inventory remains to be 37% from its 52-week excessive of over $300 a share final June.
That mentioned, shares of the most important photo voltaic firm in the US have now risen +9% in January and traders could also be questioning if an prolonged rebound is in retailer for FSLR.
Picture Supply: Zacks Funding Analysis
Decrease Market Sentiment for FSLR
Though First Photo voltaic is one the world’s largest suppliers of photo voltaic panels, market sentiment has been wayward for FSLR after the corporate got here in need of its Q3 prime and backside line expectations in October.
Third quarter gross sales of $887.67 million rose 10% from a yr in the past however noticeably missed estimates of $1.06 billion. On the underside line, Q3 EPS of $2.91 spiked 16% yr over yr however fell in need of expectations of $3.10.
Picture Supply: Zacks Funding Analysis
After all, First Photo voltaic’s This autumn outcomes on February 25 can be important within the hopes of regaining investor sentiment. Primarily based on Zacks estimates, First Photo voltaic’s This autumn gross sales are anticipated to extend 27% to $1.47 billion with EPS projected to soar 47% to $4.77.
Nonetheless, the Zacks ESP (Anticipated Shock Prediction) does point out First Photo voltaic might as soon as once more miss EPS expectations with the Most Correct Estimate having This autumn earnings pegged at $4.57 per share and 4% beneath the Zacks Consensus.
Picture Supply: Zacks Funding Analysis
Monitoring First Photo voltaic’s Development Trajectory
First Photo voltaic’s immense chance continues to separate the corporate from a lot of friends together with home competitor Sunrun RUN.
With Sunrun nonetheless striving to cross the chance line, First Photo voltaic’s annual earnings are actually slated to broaden 69% in fiscal 2024 to $13.13 per share versus EPS of $7.74 in 2023. Extra spectacular, FY25 EPS is projected to climb one other 54% to $20.14 based mostly on Zacks estimates.
Notably, First Photo voltaic is anticipating excessive double-digit gross sales progress in FY24 and FY25 as effectively with projections edging north of $5 billion.
Picture Supply: Zacks Funding Analysis
Monitoring First Photo voltaic’s Valuation
Alluding to the notion that an prolonged rebound might be in retailer for First Photo voltaic’s inventory in some unspecified time in the future is that FSLR trades at 9.2X ahead earnings. This can be a sharp low cost to the benchmark S&P 500’s 22.2X and properly beneath its Zacks Photo voltaic Trade common of 15.2X.
Picture Supply: Zacks Funding Analysis
Backside Line
For now, First Photo voltaic inventory lands a Zacks Rank #3 (Maintain). Whereas there should be higher shopping for alternatives forward, longer-term traders might actually be rewarded with the Common Zacks Worth Goal of $275.43 a share suggesting 48% upside from present ranges.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
