First Solar stock up 33% year-to-date with positive revenue growth and strong backlog

From Nasdaq: 2024-07-14 22:55:14

First Solar (NASDAQ:FSLR) stock has risen by 33% year-to-date, while Enphase Energy (NASDAQ:ENPH) stock has declined by 18%. First Solar’s revenue increased by 45% in Q1 2024, with net profit margins up to 28%. The company has a strong bookings backlog of 78.3 GW, benefiting from favorable regulatory environment and tax credits.

Rising demand for AI applications is driving solar power adoption, benefiting First Solar with its focus on utility-scale panels. FSLR stock has surged 130% since early 2021, outperforming the S&P 500. However, returns have been inconsistent year-on-year. With favorable macroeconomic factors and domestic production incentives, First Solar is well-positioned in the solar sector.

There are long-term positives for the solar sector, with potential risks for First Solar due to upcoming elections and potential changes in tax credits. Inflation cooling and interest rate reductions could benefit renewable energy stocks. Despite risks, First Solar remains a key player in U.S. domestic renewables production with a neutral outlook on its stock performance.



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