First Solar Stock Analysis

Summary

• First Solar’s stock price has fallen over 17% since the last earnings report, the latest rapid movement of the traditionally volatile stock.
• The sell-off is overdone, however, as the underwhelming results can easily be explained away.
• The company is set up well to take advantage of increased demand over the next couple of years and to grow internationally.
• I Know First Algorithm is bullish on First Solar, believing the company is a viable future player in a rapidly growing market.

First Solar, Inc. is a solar energy company. Its stock price should recover in the coming months, with the next earnings report a likely stimulus to send the stock price higher. Strong leadership from the management team, solid profitability historically, and a relatively cheap current valuation make this company an attractive target for investors. The stock offers up to 20% upside potential in the short-term, and the company’s long-term viability in a growing market makes it a stock worth buying and holding on to.

The latest bit of volatility has seen the stock price fall over 7.43% on June 1st, the day after the company reported its first quarter earnings. Since the earnings report, the stock price has continued to fall, now down 17.18% since the earnings report, as some sell-side analysts have lowered their estimates for the company.

The stock offers up to 20% upside potential in the short-term, and the company’s long-term viability in a growing market makes it a stock worth buying and holding on to. I Know First has a bullish algorithmic forecast for First Solar, believing that it will increase during the second half of the year and beyond.

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