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First Solar Might Be Worth Considering Before Earnings, Estimates Show

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Investors are always looking for stocks that are poised to beat at earnings season and First Solar, Inc. (NASDAQ: FSLR) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because First Solar is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for FSLR in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 79 cents per share for FSLR, compared to a broader Zacks Consensus Estimate of 77 cents per share. This suggests that analysts have very recently bumped up their estimates for FSLR, giving the stock a Zacks Earnings ESP of 2.60 percent heading into earnings season.

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70 percent of the time, and have returned over 28 percent on average in annual returns (see more Top Earnings ESP stocks here).

Given that FSLR has a Zacks Rank #3 (Hold) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions suggest that good things are ahead for First Solar, and that a beat might be in the cards for the upcoming report.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Previews Trading Ideas


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