First Solar, Inc. (NASDAQ: FSLR) is a solar panels manufacturer based in the US. The company focuses on providing solar panels for utility-scale PV power plants. It also supplies supporting services, including maintenance, construction, end-of-life recycling, and financing. The company is a pioneer in thin-film PV technology. It produces efficient modules with superior degradation, spectral and shading response, temperature coefficient, and a reduced environmental impact.
Recent Stock Performance
At the close of trading on December 15, 2023, the stock climbed nearly 9%. The spike in price came after the Federal Reserve gave strong signals that it is cutting rates in 2024. FSLR stock jumped above the 50-day moving average of $150.27 soon after the news came out. However, it is still slightly below its 200-day moving average of $182.45.
The solar industry has struggled for most of 2023. With most residential and commercial solar installations relying on financing deals, many have opted to wait until interest rates improve. First Solar stock has risen 12.92% year-to-date despite the challenging operating environment.
However, its performance has been a mixed bag. For instance, it has fallen 11.58% in value in the past six months. In contrast, the stock has improved its value by 3.30% in the past month. In general, 2023 has been a volatile year for FSLR stock.
First Solar Stock Forecast
If the Fed proceeds with meaningful rate cuts in 2024, it could improve clean energy stocks. Additionally, if the government increases subsidies for clean energy, it could lead to a further improvement for these stocks.
In its Q323 quarterly earnings report, First Solar reported revenue of $801.09 million, a Y/Y increase of 27.37%. The company reported a net income of $268.4 million, representing a Y/Y rise of 645.88%. Its EPS was $2.50, which beat analysts’ estimates by 22.58% and represented a Y/Y rise of 643.48%.
In Q4, analysts predict an EPS of $3.27, representing a Y/Y change of 4,771.4%. FY23’s EPS estimate is $7.78, which would be a 1,997.6% increase Y/Y. In 2024, analysts estimate an EPS of $13.23, a 70% increase from the FY23 estimate.
Based on its current performance and the expected improvement in macroeconomic conditions, analysts have given FSLR stock a buy rating. They predict a high target of $332 and a lot of $157.56. Their average price target is $231.56, a 41.05% upside for the stock.
Should You Buy FSLR Stock?
The company is in great shape; its latest earnings report reported a net cash balance of $1.8 billion. Consequently, as economic conditions improve, it will have the financial muscle to upscale its marketing activity. Based on its strong balance sheet and excellent products, FSLR could become one of the best-performing clean energy stocks in 2024 and beyond.
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