Solar energy major First Solar (FSLR) may be prepping for a breakout as it completes a cup-with-handle pattern. However, its growth has been a bit erratic so it’s hard to tell which way it goes from here. Still, on Thursday the Relative Strength (RS) Rating for First Solar stock moved up into a new percentile, as it got a lift from 69 to 73.
The 73 RS Rating shows that First Solar stock has outperformed 73% of all stocks, regardless of industry group, over the past year. Market research says stocks that go on to make the biggest gains often have an RS Rating over 80 as they launch their largest runs. See if First Solar can continue to rebound and clear that threshold.
Big Money Accumulating First Solar Stock
Among other key ratings, First Solar stock boasts an excellent A- Accumulation/Distribution Rating, on an A+ to E scale. The A- rating indicates institutional investors are heavily buying shares. Additionally, Tempe, Ariz.-based First Solar has a 71 Composite Rating, showing it is in the top 29% of stocks on the most important technical and fundamental metrics.
In terms of fundamentals, First Solar has been kind of erratic, sometimes putting up outstanding numbers and other times badly missing. Last quarter, for example, the maker and seller of solar energy systems reported a 120% earnings growth surge, to 77 cents per share. But sales fell 2% year over year to $629.2 million.
First Solar stock broke out earlier, but has fallen back below the prior 97.58 entry from a cup with handle. It recently added a handle to the base, but hasn’t moved up since completing the pattern. Note also that the most recent consolidation is a later-stage base. Third and fourth stage bases can succeed, but are riskier than first and second stage patterns.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s proprietary Relative Strength Rating measures price action with a 1 (worst) to 99 (best) score. The score shows how a stock’s price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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