First Solar, Inc. (FSLR) Is a Solid Long-Term Bet: SunPower Corporation (SPWR), Trina Solar Limited (ADR) (TSL)

Clearly First Solar’s financial position leads the sector, allowing the company to invest in its business in ways that its competitors can’t.

SunPower Corporation (NASDAQ:SPWR) is a vertically integrated solar products and services company that designs, manufactures and delivers high-performance solar electric systems worldwide. Trina Solar Limited (ADR) (NYSE:TSL), based in China, is an integrated solar-power products manufacturer with a global distribution network covering Europe, North America and Asia.

First Solar, Inc. (NASDAQ:FSLR) produces Cadmium Telluride thin film PV panels while SunPower Corporation (NASDAQ:SPWR) and Trina Solar produce silicon-based PV panels. The solar PV market has been hampered by silicon shortages as a majority of PV systems use purified silicon for their products. Despite thin-film technologies having an average conversion efficiency that is 9% lower than silicon PV, with the silicon crunch and lower production costs, they are a growing force in the PV market. CdTe is also less expensive than crystalline silicon. This is positive for First Solar, as silicon shortages are negatively impacting its direct competitors.

First Solar has a market cap of $2.39 billion and a modest beta of 1.57, while SunPower Corporation (NASDAQ:SPWR) has a market cap of $1.50 with a beta of 2.77 and Trina Solar Limited (ADR) (NYSE:TSL) has a market cap of $335.27 million with a high beta of 3.16.

Conclusion

I feel First Solar’s stock has very limited downside from the current level due to its market leadership, proven ability and low debt. I would recommend buying the stock in dips as a long-term investment.

The article First Solar Is a Solid Long-Term Bet originally appeared on Fool.com and is written by Anindya Batabyal.

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