It’s been a volatile few months for solar stocks which saw a big surge off the bottom late last year only to retest those lows recently. Today, solar stocks get a spark in positive guidance from First Solar (FSLR) which posted much better than expected guidance, but it remains to be seen if they catch fire again. It’s too soon to begin calling another bottom in solar stocks, but today’s buy interest/short squeeze definitely means you should put solar stocks back on the radar for a potential trade in the coming days and weeks.
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Here are highlights from the guidance:
2013:
Sales 3.8 – 4 B
EPS of 4 – 4.50
Module Shipments 1.6GW – 1.8GW
Analysts see FY13 sales of $3.15 billion and EPS of $3.46.
2014:
Sales 3.5 – 4 B
EPS 2.5 – 4
Shipments 1.8 – 2.2 GW
2015:
Sales 4.2 – 4.8 B
EPS 4 – 6
Shipments 2.3 – 2.7 GW
Shares of First Solar (FSLR) were up nearly 50% earlier today. It has come off the highs just a bit, but is still trading at a new 52 WK high with very heavy volume. Suntech Power (STP) is also up big at 33% and most of the other solar stocks are up anywhere from 10 – 20% today. The Guggenheim Solar ETF (TAN) is up 15% and breaking out of a downtrend. In my opinion, if these solar stocks retrace the majority of this today’s move, that would setup a real nice, lower risk entry point.