From Nasdaq:

First Solar stock (NASDAQ: FSLR) had a mixed 2023, gaining 15% but underperforming the S&P 500’s 24% gain. The company’s Q3 2023 earnings beat estimates at $2.50 per share but revenue fell short. Further concerns arose when NextEra Energy lowered growth rate targets for its subsidiary, sparking investor worries in the renewable energy sector.

Despite gains since early 2021, FSLR stock had inconsistent returns. Heavyweights in the IT sector also struggled to consistently beat the S&P 500, unlike the Trefis High Quality (HQ) Portfolio stocks, which outperformed the index. As uncertainty looms, it raises questions on whether FSLR will underperform or experience a strong jump in the next year.

The solar sector shows long-term promise, with economic conditions potentially improving. The Federal Reserve mentioned possible interest rate cuts, while a law was passed in 2022 for clean energy investments. Supply chain snags are easing, which could lead to improved margins for solar manufacturers. First Solar sees a long runway for uptake in solar as an energy source, indicating good growth potential.

In December 2023, First Solar’s return stood at 15% for the year, and the stock remains supported by an estimated valuation of $211, about 50% ahead of the market price. An analysis of First Solar’s valuation suggests favorable prospects for the stock. Given the consistent underperformance of FSLR compared with the market, it did not achieve the success expected.



Read more: Up A Mere 15% In 2023, Is First Solar Stock Poised To Do Better In 2024?