Opinions Jim Cramer - Mad Money
First Solar Inc.FSLRPARTIAL BUYJul 12, 2021
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Jun 08, 2026. Market Open.
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The US is pushing away from solar energy. He bought it because they were a US-domestic supplier of panels. There was an oversupply in China which drove prices down. He was counting on the domestic supplier being protected from foreign producers. This didn't happen. Today, there is a Senate proposal to end tax incentives for solar, and those shares are sliding. He sold shares in February--he saw it coming. It's hard to admit defeat, but you have to.
Was a past pick of his. Shares have been bumpy for fears that Trump will impose tariffs on solar panels and he doesn't like green energy, though there's bi-partisan support for solar energy. FSLR is the only real option for the US, so FSLR is a fine position. Shares will be bumpy thought. Buy for the long term.
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Premium contentFirst solar (nasdaq: fslr) is a leading global provider of comprehensive photovoltaic (pv) solar systems which use its advanced thin-film modules. the company’s integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation today. from raw material sourcing through end-of-life module collection and recycling, first solar’s renewable energy systems protect and enhance the environment. Social media mentions are up 300% in the past 24h.
Premium contentOur PAST TOP PICK with FSLR has triggered its stop at $2100. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 15%, when combined with our previous recommendations.
EPS of $3.25 beat estimates of $2.66; revenue of $1.01B beat estimates of $940M. Guidance was for EPS $13.00 to $14.00 (unchanged), vs estimates $13.60. It was a good quarter, and the company remains debt-free with $1.2B cash and strong EPS growth prospects over the next two years. However, election uncertainty does seem to be impacting customer bookings, and this may hurt the next two quarters until solar policies are clarified. But fundamentals ex-this factor are quite good, and it remains the leader in the sector, for sure.
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Premium contentWith demand for solar generation continuing to grow we reiterate FLSR as a TOP PICK. It is uniquely aided by US government protectionist policies against competition from China. It trades at 24x earnings and 3.5x book while supporting a 16% ROE. We also like that cash reserves are growing well and that analysts project a growth in EPS over 50% for the year. We continue to recommend a stop at $210, looking to achieve $290 -- upside potential of 24%. Yield 0%
(Analysts’ price target is $290.16)Premium contentHe recently bought it. Are a domestic producer of solar panel in the U.S. so tariffs protect it and subsidies help it. They have a two-year backlog of orders.
(Analysts’ price target is $265.98)Gordon ReidUp 54% in May, the S&P's top performer. His favourite solar play because it's profitable and the largest US manufacturer with lots of exposure in industrial-scale projects. They reported a monster earnings beat, but were greatly help by Biden announcing tariffs of China's solar cells. This stock has more room to run.
Premium contentPremium contentAs the western hemisphere's largest solar module manufacturer, we reiterate FSLR as a TOP PICK. Analysts expect a 400% cash flow expansion over the year, when it reports in May. It trades at 24x earnings and 3x book value. We recommend maintaining the stop at $140, looking to achieve $222 -- upside potential of 21%. Yield 0%
(Analysts’ price target is $221.96)
Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. One of his three favourite solar stocks is First Solar. FS makes its own panels and proprietary technology. They're sold out for 2021 and nearly for 2022. They have an excellent balance and trades at 21x earnings. You can buy a partial position write now or buy on dips.