Bullish: First Solar Starts To Show Signs Of Life
Solar stocks have been pounded for well over a year. While most investors continue to stay away from them, the right decision may actually be to buy them now. Based on valuation levels, they are extremely attractive at current levels. First Solar, Inc. (NASDAQ:FSLR) is trading at $16.85, +0.31 (+1.87%). This is one of the leaders in the sector and trading higher on a down day on Wall Street. At this stage of the game, any horrid news is priced into the stock and the sector. Solar prices are low, but unlikely to go much lower. First Solar has been able to maintain itself during these times.
A good example would be the recent major pop in natural gas. While the price was down sharply in recent years, it will only go so low before demand picks up. Many natural gas stocks have popped significantly in recent days. Considering First Solar as best of breed, this is the player to be in. Any sort of pop will see extended upside due to short covering. Short term, a move back above $20.00 is likely.