First Solar Inc. (FSLR): Today's Featured Electronics Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

First Solar ( FSLR) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 2.5%. By the end of trading, First Solar fell $3.23 (-5.8%) to $52.40 on average volume. Throughout the day, 10,446,261 shares of First Solar exchanged hands as compared to its average daily volume of 7,282,500 shares. The stock ranged in price between $50.68-$55.96 after having opened the day at $55.75 as compared to the previous trading day's close of $55.63. Other companies within the Electronics industry that declined today were: Renewable Energy Trade Board ( EBOD), down 48.9%, Hanwha SolarOne ( HSOL), down 21.4%, Suntech Power Holdings ( STP), down 20.3% and LDK Solar Company ( LDK), down 18.6%.
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First Solar, Inc. provides solar energy solutions. It operates in two segments, Components and Systems. The Components segment engages in the design, manufacture, and sale of solar modules that convert sunlight into electricity. First Solar has a market cap of $4.8 billion and is part of the technology sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 77.9% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates First Solar a buy, 4 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates First Solar as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Transcat ( TRNS), down 16.9%, Pixelworks ( PXLW), down 9.7%, Alliance Fiber Optic Products ( AFOP), down 9.3% and BTU International ( BTUI), down 8.9%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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