First Solar Stock Is The Best Of Breed Among Solar Stocks
The power is back on with solar stocks
The Nasdaq has been the leader among the indices out of the crash. Its up an impressive 26% year-to-date. But the recent heroes on Wall Street are comeback sectors like the solar stocks. Consensus is that First Solar is the cream of the crop, much like Canopy Growth is to cannabis. However, First Solar stock is not leading the pack up. Its only up 50% year to date.
This makes me giggle a bit.
The Invesco Solar ETF is up twice as much and Sunrun five times. Even though it is the anointed best-of-breed by the experts, First Solar stock is lagging. But that could be a good thing.
The whole sector got too hot and the October rally went too far too fast. The proof is that RUN fell 30% from its peak. Luckily, FSLR has only dipped half as much and is only 9% away from the peak. In this case, lagging served it well. However, let the debacle in RUN serve as a sobering example of what can happen here.
Patience is key at these levels. Momentum stocks like these run fast in both directions. Chasing them into a hype rally is rarely a good idea. Today, we look for the right entries in First Solar stock.
First Solar Is Back In Growth Mode And That Could Be Great For The Stock
Solar panel manufacturers have been among the hardest solar energy stocks to invest in over the past decade, with price competition and growing capacity in China hampering profitability across the board. Even a profitable leader like First Solar has seen its stock fall 6% over the past 10 years, with an incredible amount of volatility in the process.
If you’ve been watching this industry from the sidelines, now is the time to get into First Solar stock, because the company is going back into growth mode. It’s shed legacy assets that were weighing the company down and investing in what it does best, which is making industry-leading solar panels. A few years from now, we may look back and see this as the best solar energy stock in the industry.
Image source: First Solar.
Best Cannabis Stock To Buy Now
Cannabis investing has gone mainstream. But the good news is it’s still very early in the sector’s growth.
That’s why one of the best stocks to buy is a cannabis company.
Twenty-two states have legalized marijuana for medicinal purposes, while 18 have legalized marijuana for all uses, including recreational uses.
That means the size of this industry has room to more than double on state legalization alone. Never mind the growth some brands will see as they claim market share or as Americans turn to cannabis to replace expensive prescription medication or alcohol.
Simply put, this is going to be one of the fastest growing sectors in the market for years to come.
But to get the most profit potential out of this growth, investors need to get in now. The best way to do that is to target Florida.
Florida will be the fourth largest legal cannabis market in the United States by 2025. That makes it worth $2 billion a year in sales. And it hasn’t even legalized marijuana for recreational use yet.
By owning multi-state operating companies building a foundation here, you’ll get a double pop from Florida’s legalization and the rest of the country legalizing cannabis.
The best stock to do that is Curaleaf Holdings Inc. .
Curaleaf already operates 37 stores in Florida and plans to open 23 more by the end of next year. Even better, it operates 106 stores across the entire country and is taking over European operations too.
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A More Focused Approach
That decision by First Solar management to explore its options was based on its cost-return analysis of a competitive segment — part of a series of steps that it has been taking to turn itself into a more focused solar panel manufacturer. First Solar exited from its engineering, procurement, and construction business business in 2019. The company now uses third-party EPC services. And in August, it agreed to sell its operations and maintenance business to NovaSource. The idea is to focus only on the highest-margin aspects of its business. While this may limit growth avenues for the company, it’s the right approach to improve returns.
Meanwhile, First Solar hopes to expand its module production capacity to around 8 GW annually by the end of 2021. That would be an addition of around 2.5 GW from its expected 2020 shipments of 5.5 GW to 5.7 GW.
Why These 10 Stocks Are Trending On Thursday
In this article we take a look at the some of notable stocks that are trending today. You can skip our detailed analysis of these stocks and go to read Why These 5 Stocks Are Trending on Thursday. Some stocks trending in after hours on Thursday include First Solar, Inc. , Yelp Inc. , Uber
First Solar delivered earnings and revenue surprises of -33.33% and -16.48%, respectively, for the quarter ended September 2021. Do the numbers hold clues to what lies ahead for the stock?
First Solar stock fell late Thursday as the solar power company reported quarterly results that missed estimates during challenging times.
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First Solar Inc Announces Third Quarter 2021 Financial Results
Net sales of $584 millionNet income per diluted share of $0.42Cash, cash equivalents, restricted cash, and marketable securities of $1.9 billionThird quarter production of 2.0 GWDC despite challenging freight and COVID-19 environmentIncreased top production bin to 465 watts, representing 19% glass area efficiencyStarted construction and purchased equipment for our next-generation factories in Ohio and IndiaYTD net bookings of 10.5 GWDC 1.5 GWDC since prior earnings callMaintain 2021 EPS guidanc
In this episode of Influencers, Andy is joined by Galvanize Climate Solutions Co-Chair, Tom Steyer as they discuss sustainable investing and why the private sector must step-up to solve climate change.
First Solar Q3 results are likely to reflect solid demand for CadTel technology, along with impacts from higher freight cost and lower shipments
How To Invest In Renewable Energy
As you search for solar stocks, dont forget that there is an entire renewable energy industry. Electric vehicles are becoming more common, and General Motors plans to sell only zero-emission vehicles by 2035. Wind and hydroelectric power is a growing force in renewable energy solutions.
Alternatively, if you want a somewhat diversified way to invest in companies that are trying to improve energy efficiency, Hannon Armstrong should be up your alley. The company provides capital to companies in the energy efficiency, renewable energy and other sustainable infrastructure markets. In exchange for capital to advance their businesses Hannon generates recurring revenue and predictable cash flows. And the stock, while down sharply in 2021, is still up 68% in the last year.
What else would you like to know about solar power stocks? Leave your question in the comments below.
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Sol Dq And Gcpef Are Top For Value Growth And Momentum Respectively
The solar energy industry has grown rapidly even as fossil fuels remain the dominant source of global energy use. Solar industry companies come from multiple sectors, including utilities, industrial, and energy, and include popular stocks such as SolarEdge Technologies and SunRun Inc. . While some large utilities and energy companies have solar and renewable energy divisions, these businesses typically are not included in the industry’s listings because the parent’s primary focus is not solar.
Solar stocks, represented by the Invesco Solar ETF , have outperformed the broader market over the past year. TAN has provided a total return of 52.3% over the last 12 months, above the iShares Russell 1000 ETF’s total return of 34.3%. These market performance numbers and all statistics in the tables below are as of Sept. 14, 2021.
Here are the top three solar stocks with the best value, the fastest growth, and the most momentum.
Best Solar Stocks To Buy
Before we talk about stocks, lets go over a few of our ground rules about the industry.
First, not every solar company is built to make money for shareholders.
Some of these companies are staying afloat on subsidies or money from venture capitalist dollars which is why its so important to do a thorough analysis before jumping in.
While some companies dabble in solar energy or own subsidiaries in the solar power industry, we primarily focus on pure solar stock plays.
Without further ado, lets take a look at some of the best solar stocks out there right now.
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Is It A Good Time To Buy First Solar Stock
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
First Solar Has A Strong Balance Sheet
First Solar has a rock solid balance sheet. In fact, the company’s net debt is negative, meaning it has loads of cash to pay the small amount of debt that it owes. A strong balance sheet enables First Solar to not only self-fund future capacity expansions but also invest in disruptive technologies that can set the company’s products apart from its competitors.
As an example, First Solar believes that its ‘thin-film technology’ generates greater energy than traditional modules. Differentiated and better quality products could help First Solar command higher margins for its products.
As the above graph shows, First Solar easily beats its peers when it comes to balance sheet strength. This strength enabled First Solar to survive in an industry that may at times see periods of structural demand-supply imbalance.
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Do Hedge Funds Think Fslr Is A Good Stock To Buy Now
At Q3’s end, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of 150% from one quarter earlier. On the other hand, there were a total of 32 hedge funds with a bullish position in FSLR a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Masters Capital Management was the largest shareholder of First Solar, Inc. , with a stake worth $66.2 million reported as of the end of September. Trailing Masters Capital Management was Lansdowne Partners, which amassed a stake valued at $59 million. Citadel Investment Group, Millennium Management, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Bronson Point Partners allocated the biggest weight to First Solar, Inc. , around 5.31% of its 13F portfolio. Masters Capital Management is also relatively very bullish on the stock, dishing out 4.4 percent of its 13F equity portfolio to FSLR.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as First Solar, Inc. but similarly valued. These stocks are Vereit Inc , Cree, Inc. , AMERCO , IAA, Inc. , Store Capital Corporation , Mohawk Industries, Inc. , and GFL Environmental Inc. . This group of stocks’ market values resemble FSLR’s market value.
Best Solar Energy Stocks To Buy Now
In this article we presented our list of the 10 best solar energy stocks to buy now. Click to skip ahead and jump to 5 Best Solar Energy Stocks To Buy Now.
Buying solar energy stocks is not always as straightforward as it should be. With so many choices, investors are really confused and they want to catch up with growing investor interest and sky-high stock returns. Now, we take a closer look at the solar energy sector and stocks.
Investing in Renewable Energy has never been so important. As society faces climate change and its consequences, businesses have to put a lot of effort in to meet compliance requirements. One way is doing this is by increasing the usage of renewable resources to meet the energy demand. Besides, governments support renewable energy generation to reach their net-zero emission targets. As a result, companies are taking advantage of this interest and the number of renewable energy companies is skyrocketing. Not only does the sector focus on PV systems, but also solar thermal applications besides manufacturing components, installation, and operating services.
Based on our hedge fund sentiment data, here are the 10 best solar energy stocks to buy now:
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Both Solar Companies Saw Spectacular Gains Last Year But 2021 Is Different So Which Is The Better Investment: First Solar Or Sunpower
First Solar saw its stock price surge 73% in 2020 and SunPower fared even better with a 400% gain. This year, however, both companies stock prices have plateaued due to fears of inflation and a new capital gains tax proposal. The global solar energy market is expected to quadruple in value to over $220 billion by 2026 and global green initiatives continue to drive the market.
Additionally, photovoltaic prices are dropping, making solar panels more affordable. Pessimists dismiss the energy source for being non-portable, weather dependent, and having high up-front costs. With these points in mind, which is the better investment right now?
Is First Solar Stock Undervalued Or Overvalued
Valuing First Solar stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of First Solar’s overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
First Solar’s P/E ratio
First Solar’s current share price divided by its per-share earnings over a 12-month period gives a “trailing price/earnings ratio” of roughly 25x. In other words, First Solar shares trade at around 25x recent earnings.
That’s relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 . The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they’re under-valued.
First Solar’s PEG ratio
First Solar’s “price/earnings-to-growth ratio” can be calculated by dividing its P/E ratio by its growth to give 5.1788. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into First Solar’s future profitability. By accounting for growth, it could also help you if you’re comparing the share prices of multiple high-growth companies.
First Solar’s EBITDA
First Solar’s EBITDA is $593.4 million.
The EBITDA is a measure of a First Solar’s overall financial performance and is widely used to measure a its profitability.
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What This Means For You:
Are you a shareholder? Although FSLR is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to FSLR, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If youve been keeping tabs on FSLR for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
In light of this, if you’d like to do more analysis on the company, it’s vital to be informed of the risks involved. Case in point: We’ve spotted 2 warning signs for First Solar you should be mindful of and 1 of them is a bit unpleasant.
If you are no longer interested in First Solar, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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What Is First Solar Worth
Good news, investors! First Solar is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average. In this instance, Ive used the price-to-earnings ratio given that there is not enough information to reliably forecast the stocks cash flows. I find that First Solars ratio of 15.74x is below its peer average of 32.79x, which indicates the stock is trading at a lower price compared to the Semiconductor industry. However, given that First Solars share is fairly volatile this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
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How To Choose The Best Solar Company To Invest In
The ideal combination would be a company with:
- strong revenue growth,
- strong earnings growth, a good growth story,
- and a strong chart thats hit recent record highs and is now on a normal pullback.
Lastlyand this is hard to quantifythe ideal stock is not over-owned and has great potential to climb higher as more investors become aware of it and develop positive opinions about it.
None of these solar power stocks meet all these criteria, which is not surprising. But the ones that come closest are Enphase , Sunova , Sunrun and Solaredge .