FSLR Should I Buy
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First Solar Inc. is not a strong buy for a beginner investor with a long-term horizon at this time. The stock is experiencing negative momentum, weak technical indicators, and a series of downgrades from analysts due to disappointing guidance and earnings. Despite solid financial growth in the last quarter, the lack of clear positive catalysts and uncertainty surrounding regulatory decisions make it prudent to hold off on investing in this stock for now.
The MACD is negative and expanding downward (-3.221), indicating bearish momentum. The RSI is at 20.385, which is neutral but close to oversold territory. Moving averages are converging, showing indecision. Key support levels are at $194.567 and $180.228, with resistance at $217.777 and $240.988. Overall, the technical indicators suggest a bearish trend.
Gross margin also improved. Long-term investments in technology, such as perovskites, could support future growth.
The company missed Q4 earnings expectations and issued weak 2026 guidance. Analysts have significantly lowered price targets and downgraded ratings, citing uncertainty in the utility-scale solar market and reliance on government subsidies. Regulatory uncertainty regarding Section 232 tariffs adds further risk. Options data and technical indicators reflect bearish sentiment.
In Q4 2025, revenue increased by 11.15% YoY to $1.682 billion, net income rose by 32.50% YoY to $520.88 million, and EPS grew by 32.60% YoY to $4.84. Gross margin improved to 39.54%, up 5.47% YoY. While financials are strong, weak guidance for 2026 overshadows these results.
Analysts have downgraded the stock significantly. GLJ Research, Freedom Capital, and Deutsche Bank downgraded the stock to Hold, citing weak guidance and missed earnings. Price targets have been lowered across the board, with the most optimistic target at $300 (UBS) and the lowest at $205 (Jefferies). Analysts are cautious due to limited visibility on recovery and reliance on regulatory decisions.
