Since President Donald Trump announced sweeping tariffs on April 2, the uncertainty has unleashed a bloodbath on Wall Street: The S&P 500 SPX+0.13% is off 6.9% since that day, while the Roundhill Magnificent Seven exchange-traded fund MAGS-0.70% is down 10% over the same period.
Key themes heading into earnings include tariffs, IRA uncertainty, demand for residential solar, and what Trump's policies will mean for interest rates.
First Solar has over half of their manufacturing capacity in the US with more capacity coming online this year, and their international capacity isn't in China. President Trump's energy sector deregulation policies will also help solar developers by reducing permitting time. First Solar has experienced high growth over the past few years and growth is likely to continue. Reshoring of manufactur...
While the S&P 500 is down about 7% in the five days leading to morning trading on Apr. 8, 2025, solar energy leader First Solar Inc. NASDAQ: FSLR has climbed by roughly 4.5% during the same period.
First Solar faces operational challenges and geopolitical risks, but remains a strong player in the U.S. market due to IRA incentives and tariffs. Earnings volatility is driven by manufacturing issues, tariffs, and geopolitical constraints, impacting margins and production flexibility. Despite short-term risks, I still rate the company as a buy, targeting long-term portfolio weight, given First...
First Solar stands to benefit from US reindustrialization policies, despite potential tax credit cutbacks under the current administration. FSLR's mixed 4Q24 results were impacted by warranty charges and production issues, but management expects strong growth in 2025. Section 45X tax credits are crucial for FSLR's profitability. I believe potential cutbacks are unlikely, given the current admin...
First Solar's stock has been hit by recession fears and potential cuts to U.S. solar incentives, but climate change realities support long-term demand for clean energy. Oil and gas prices could soon rise again, making renewable energy sources like solar more competitive and desirable. The valuation story is becoming quite attractive, with the basic forward P/E ratio falling under 5x 2026 estima...
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