Temporary Clouds Produce Bright Opportunity in First Solar

First Solar (FSLR) — This large-cap solar company produces solar modules using a proprietary thin-film semiconductor technology. Although S&P Capital IQ analysts expect profit margins to narrow this year, they look for a pronounced expansion of margins in 2015. And with increased bookings, they forecast earnings of $2.62 per share in 2014 and $4.55 in 2015. Their 12-month price target is $84.

Technically FSLR has formed a huge seven-month consolidation in the form of a “W” or reverse head-and-shoulders formation. Overall pressure on Nasdaq stocks could drive shares to their 50-day moving average at $67.29, which is our buy point.

A breakout from the March closing high at $73.87 will produce a trading target of $80.

FSLR Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2014/09/trade-day-first-solar-fslr/.

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