We came across a bullish thesis on First Solar, Inc. (FSLR) on Substack by Long-Term Pick. In this article, we will summarize the bulls’ thesis on FSLR. First Solar, Inc. (FSLR)’s share was trading at $136.18 as of Feb 28th. FSLR’s trailing and forward P/E were 11.33 and 7.37 respectively according to Yahoo Finance.
A photovoltaic field at dawn, its solar panels shimmering in the light of a new day.
First Solar (FSLR) is poised for significant growth, supported by strong financial performance, strategic capacity expansion, and a favorable policy environment. The company reported $4.2 billion in net sales for 2024, a substantial increase from $3.3 billion the previous year, driven by higher module sales. In Q4 2024 alone, net sales reached $1.5 billion, with earnings per diluted share of $3.65, bringing the full-year EPS to $12.02. First Solar ended the year with a $1.2 billion net cash balance, up from $0.7 billion in the prior quarter. Bookings for 2024 totaled 4.4 GW at an average selling price of 30.5 cents per watt, reflecting strong demand and a healthy backlog.
The company continues to scale its operations, commissioning its Alabama plant and progressing with the construction of its Louisiana facility. Additionally, a new R&D center in Ohio has been launched to drive innovation and strengthen First Solar’s technology leadership. For 2025, the company forecasts net sales between $5.3 billion and $5.8 billion, with projected earnings per diluted share ranging from $17.00 to $20.00. Gross margin is expected to be between $2.45 billion and $2.75 billion, while capital expenditures will range from $1.3 billion to $1.5 billion. Module sales are anticipated to reach 18GW to 20GW, supported by increased manufacturing capacity and sustained demand.
With a fair value estimate of $447 per share, First Solar remains well-positioned for long-term growth. The company’s expansion efforts, strong financials, and supportive regulatory incentives under the Inflation Reduction Act create a compelling investment case. As it continues to execute its growth strategy, First Solar stands as a leading player in the solar industry, capitalizing on rising demand and technological advancements.
First Solar, Inc. (FSLR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held FSLR at the end of the fourth quarter which was 59 in the previous quarter. While we acknowledge the risk and potential of FSLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.