First Solar (FSLR): Revisiting Valuation After a Recent Pullback and Strong Multi‑Year Shareholder Returns

First Solar (FSLR) has quietly pulled back about 4% over the past month after a strong run this year, giving investors a chance to revisit the stock’s setup and long term thesis.

See our latest analysis for First Solar.

That pullback comes after a strong stretch, with the share price up solidly year to date and the 5 year total shareholder return close to tripling. This suggests momentum is cooling slightly rather than breaking.

If First Solar’s run has you thinking about what else could surprise to the upside in this space, it is a good moment to explore fast growing stocks with high insider ownership.

With earnings and growth expectations still trending higher, yet the stock already boasting a near tripled five year return, investors face a key question: is First Solar still mispriced, or is the market fully discounting its future?

Most Popular Narrative Narrative: 5.8% Undervalued

With First Solar last closing at $255.88 against a narrative fair value near $271.61, the framework points to modest upside still embedded in expectations.

The company's rapid U.S. manufacturing capacity expansion (including new Alabama and Louisiana facilities coming online) positions it to leverage tax credits, reduce reliance on imports subjected to tariffs, and capture a premium for domestic content, which is expected to lift both revenue growth and operating margins as incremental capacity is utilized over the coming years.

Read the complete narrative.

Curious how aggressive production build out, richer margins, and future earnings power all translate into that valuation gap? The narrative reveals the full financial blueprint.

Result: Fair Value of $271.61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this blueprint could fray if U.S. policy support softens or if tariffs and trade uncertainty squeeze international module demand and margins.

Find out about the key risks to this First Solar narrative.

Build Your Own First Solar Narrative

If you are not fully aligned with this view or prefer to rely on your own work, you can craft a fresh perspective yourself in just minutes: Do it your way.

A great starting point for your First Solar research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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