FSLR - First Solar: The Market Finally Realized Its Pessimistic Folly

2024-05-14 17:10:31 ET

Summary

• I predicted in late 2023 that the dawn was coming for First Solar stock.
• Therefore, I'm not surprised by FSLR's significant outperformance against the S&P 500 since late 2023.
• First Solar has executed well, notwithstanding challenging industry dynamics.
• Investors have likely looked past macro headwinds as interest rates potentially peaked.
• I explain why FSLR is still valued attractively as optimism returns to the solar energy leader.

First Solar Stock Outperformed

First Solar, Inc. ( FSLR ) can finally breathe a sigh of relief as the embattled thin-film solar PV manufacturer's stock fell into a deep bear market. Accordingly, FSLR stock was down nearly 45% from its 2023 highs before bottoming out in November 2023. I've been bullish about FSLR stock since I upgraded it in late 2023, assessing the "dawn is coming." Although FSLR sellers threatened a "false dawn" in early 2024, FSLR buyers returned with solid conviction, helping FSLR to outperform since forming its 2023 lows in February 2024....

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