First Solar (FSLR) Struggles Amid Market Declines Despite Analyst Optimism

First Solar, Inc. (FSLR), with a market capitalization of $13.6 billion, is a leader in the solar technology sector, offering photovoltaic (PV) solar energy solutions both in the United States and internationally. Established in 1999 and based in Tempe, Arizona, the company specializes in manufacturing and selling PV solar modules, which provide more environmentally friendly options compared to traditional solar technologies.

As a “large-cap stock,” FSLR surpasses the $10 billion threshold. The firm leverages its innovative array of solar solutions along with growing consumer confidence in alternative energy sources.

However, FSLR’s stock has encountered significant pressure, dropping 57.8% from its 52-week peak of $306.77, reached on June 12 of the previous year. In the last three months, the stock has decreased 26.5%, contrasting with the S&P 500 Index ($SPX), which has seen a mere 3.3% decline during the same timeframe.

Over the last six months, FSLR shares have fallen 46.2%, significantly outperforming the marginal decline experienced by the SPX. In the past year, FSLR stock has dipped 12.3%, while SPX has yielded a 9.6% return.

Since early December, FSLR has been trading below its 200-day moving average and has remained under its 50-day moving average since late January, indicating a persistent downtrend.

Following its Q4 earnings release on February 25, the company’s stock slid 3.6%. FSLR reported net sales of $1.5 billion, marking a 30.7% increase year-over-year. Its earnings per share (EPS) stood at $3.65, falling short of Wall Street estimates by 21.3%. Looking ahead, the company anticipates net sales and EPS in the range of $5.3 billion to $5.8 billion and $17 to $20, respectively, for 2025.

In comparison, FSLR’s competitor, Enphase Energy, Inc. (ENPH), has also experienced declines in stock value, witnessing a 42.9% drop over the past year and a 46.9% decrease in the last six months.

Despite these challenges, analysts remain optimistic about FSLR’s future. The company holds a consensus rating of “Strong Buy” from 34 analysts, with a mean price target of $249.72, indicating a potential upside of 93.1% from current prices.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.