Trade of the Day: Apple Deal Puts a New Shine on FSLR Stock

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First Solar, Inc. (NASDAQ:FSLR) — This solar module manufacturer announced an $848 million, 25-year deal with Apple Inc. (NASDAQ:AAPL) this week that marks the largest commercial power agreement in the history of the clean energy industry. Under the deal, Apple will receive electricity from 130 megawatts of a California solar farm.

This couldn’t have come at a better time for First Solar, as President Obama said in his fiscal 2016 budget proposal that he is looking to increase clean energy funding by 7.2%.

Toward the end of last year, S&P Capital IQ cut its 12-month price target for FSLR stock from $74 to $60, which now looks readily attainable.

For 2015, its analysts forecast sales will increase 17% and gross margins will widen. Earnings are expected to jump more than 70% from an estimated $2.62 per share in 2014 to $4.49 in 2015. They note the company’s superior balance sheet, strong U.S. orders and tighter cost controls as positives.

FSLR stock fell from a high just under $74 in September to a January low of about $39. However, this low was made within a bullish “W” formation. Within several days, FSLR stock broke through its 50-day moving average on very high volume and flashed a buy signal from its MACD indicator.

Shares have garnered a great deal of interest following the Apple deal, and the strong volume is expected to continue to propel them higher. My trading target for FSLR stock is $60, which is just above its 200-day moving average and more than 20% above current prices.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/02/first-solar-inc-fslr-stock-trade-day/.

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