14 Mar

FSLR: Comparing Solar Stocks’ Latest Valuations

WRITTEN BY Vineet Kulkarni

Valuation

Let’s look at the current valuations for the top solar stocks in this part of our series. First Solar (FSLR) stock is currently trading at a forward EV-to-EBITDA valuation of 7x, based on analysts’ earnings estimates for 2019. In comparison, its peer solar stocks (TAN), on average, are trading at a valuation of 12x.

FSLR: Comparing Solar Stocks’ Latest Valuations

Will the rally continue?

SunPower (SPWR) stock is trading at a forward EV-to-EBITDA multiple of 18x, much higher than First Solar. Canadian Solar (CSIQ) is trading at 7x. CSIQ stock has significantly outperformed peers this year. It’s up more than 60% year-to-date.

First Solar stock seems attractive on the valuations front, given its lower multiple compared to peers. Its strong potential growth for the next few years makes it even more attractive.

The chart above compares stock price movements for First Solar and its peers along with broader markets. Despite First Solar’s recent uptrend, it lags far behind peers in longer-term market performance. First Solar stock has fallen more than 20% over the past 12 months. SunPower is down about 10%, meanwhile.

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Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

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