| Should You Include First Solar (FSLR) In Your Portfolio? | |
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On Aug 18, 2015, we updated a research report on First Solar, Inc. FSLR. The company is focused on its distributed generation strategy that will strengthen its position in the residential solar market. First Solar’s constant product innovation efforts will continue to attract customers and expand its revenue stream. The booming solar market in the U.S. will further propel top-line growth for the company. However, intense competition, exposure to geopolitical risks and uncertainties regarding international regulations are major headwinds.
Tempe, AZ-based First Solar strikingly emerged from the first quarter loss with earnings in the second quarter outstripping expectations. Both the top and the bottom line increased year over year on the back of higher systems project revenue as well as project cost improvements.
First Solar’s expertise in PV generation solutions as well as in other areas of the solar-value chain, such as, project development, EPC capabilities and O&M services has given it a competitive edge in the business.
In the second quarter, the company launched a yieldco called 8Point3 Energy Partners LP in partnership with SunPower Corporation SPWR. Formation of a yieldco will benefit the company by providing lower cost of capital and offering stable future cash flows while retaining residual interest in high-quality solar assets.
First Solar’s heavy investment in research and development activities has increased its efficiency of solar modules. Recently, it reported that it has set a world record for cadmium-telluride (CdTe) PV module conversion efficiency, achieving 18.6% aperture efficiency for an advanced full size module.
On the flip side, First Solar’s performance may be perturbed by competition from other solar module manufacturers. Moreover, the company has an international presence which exposes it to geopolitical risks and various uncertainties regarding regulations.
Zacks Rank
First Solar currently has a Zacks Rank #3 (Hold). JA Solar Holdings Co., Ltd. JASO and SolarEdge Technologies, Inc. SEDG are better-ranked stocks in the solar industry sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JA SOLAR HOLDGS (JASO): Free Stock Analysis Report FIRST SOLAR INC (FSLR): Free Stock Analysis Report SUNPOWER CORP-A (SPWR): Free Stock Analysis Report SOLAREDGE TECH (SEDG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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First Solar is based in United states of america. First Solar is listed in Germany and in United States of America. Its market capitalisation is US$ 21.8 billions as of today (€ 19.6 billions). Its stock quote reached its lowest recent point on June 11, 2010 at US$ 100.19, and its highest recent level on September 06, 2024 at US$ 208.65. First Solar has 104 270 000 shares outstanding. |