First Solar, Inc. (FSLR), SunPower Corporation (SPWR): The Sun Is Setting on This Stock

By the numbers

Compared to other major solar companies, First Solar, Inc. (NASDAQ:FSLR) is on the cheap side from both a P/E and P/B standpoint.

However, when looking at First Solar’s expected EPS growth, the company is cheap for a reason.

Don’t be fooled

All of the major solar companies trade with tremendous volatility, with five-year average betas stacking up as follows:  First Solar (1.6), SunPower Corporation (NASDAQ:SPWR) (2.1), and MEMC Electronic Materials, Inc. (NYSE:WFR) (1.7). First Solar, Inc. (NASDAQ:FSLR) had a huge rally last week, but I believe the optimism is too much and industry headwinds still exist, with Chinese solar manufacturers still having the advantage of lower regulations, cheap labor, and lower costs.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.