FSLR - First Solar: Still My Top Risk-Adjusted Pick In Green Energy
2024-04-11 14:08:04 ET
Summary
- First Solar outperformed other solar and green energy stocks during 2023, as slowing growth challenged high industry valuations.
- The company has transformed itself into the top patented thin-film PV manufacturer outside of China, benefiting from tax and energy credit incentives in the U.S.
- First Solar is well positioned to expand rapidly, with a projected +25% annual growth rate for earnings over the next five years.
- An ultra-low PEG Ratio is worth a serious look by all investors.
First Solar ( FSLR ) has not fared well since my last bullish article in July here , with a -7% total return for shareholders. However, this loss ran circles around the steep losses outlined by other solar and green energy names for performance. Honestly, the whole group has turned into a disaster for investors, with some buildout subsidies and tax breaks globally reduced in 2023 (particularly by the state of California). A move off an exaggerated valuation level for solar early last year was also part of the problem. Lately, fears of a Republican victory in November's important election have dented clean energy optimism, as such could possibly bring an end to many of the renewable incentives for solar purchases in America going forward.
For the record, owning First Solar generated the best investment return in the peer/competitor solar group for your brokerage account from my July effort, while it still lagged general U.S. stock market performance, specifically the +16% advance witnessed by the SPDR S&P 500 ETF ( SPY )....
First Solar: Still My Top Risk-Adjusted Pick In Green Energy