Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s Why First Solar, Inc. (FSLR) Shares Are Surging Today

In contrast to the price action in recent sessions, First Solar, Inc. (NASDAQ:FSLR) shares have rallied higher today on the back of a Washington Post article that reported President Trump’s administration is considering a potential carbon tax (along with a potential value-added tax) to shore up government revenues. Although no final decision has been rendered, a carbon tax, if levied, would help boost renewable energy’s competitiveness versus fossil fuels. That could, in turn, translate into more demand for First Solar in the long run.

Given that President Trump has been sharply in favor of the oil and gas and coal industry and has placed a greater emphasis on creating American jobs rather than regulating global temperatures, the fact that the administration is even considering a carbon tax is certainly bullish for solar sentiment, at least in the near term. Whether the administration will actually enact a carbon tax is anyone’s guess however.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

According to our data, the smart money wasn’t as optimistic on the solar producer in the fourth quarter as they were in the third quarter. Of the 742 elite funds we track, 21 funds owned $168.09 million of First Solar, Inc. (NASDAQ:FSLR) and accounted for 5.00% of the float on December 31, versus 23 funds and $245.59 million respectively on September 30.

The Bottom Line

First Solar, Inc. (NASDAQ:FSLR) shares have popped today on the news that the Trump administration is considering a potential carbon tax. For more renewable energy reading, check out the article, ‘Solar Roadways and Solar Road Panels: Debunked/Busted or A Great Idea?‘.

Follow First Solar Inc. (NASDAQ:FSLR)
Trade (NASDAQ:FSLR) Now!



DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.