What Happened?

A number of stocks fell in the afternoon session after geopolitical tensions in the Middle East raised concerns over higher inflation and a potential economic slowdown. 

The conflict, involving the U.S., Israel, and Iran, caused a surge in energy prices, directly impacting industrial and materials companies by increasing costs for transportation, logistics, and manufacturing. Investors were concerned that sustained high oil prices could put further pressure on inflation, complicating the economic outlook. The broader market sentiment turned negative, with Wall Street heading for a fourth consecutive weekly loss as investors weighed these geopolitical risks. This environment is particularly challenging for cyclical sectors like industrials, which are sensitive to changes in global economic demand and input costs.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Electronic Components company Bel Fuse (NASDAQ: BELFA) fell 3.3%. Is now the time to buy Bel Fuse? Access our full analysis report here, it’s free.
• Home Builders company TopBuild (NYSE: BLD) fell 3.2%. Is now the time to buy TopBuild? Access our full analysis report here, it’s free.
• Renewable Energy company First Solar (NASDAQ: FSLR) fell 3.3%. Is now the time to buy First Solar? Access our full analysis report here, it’s free.
• Construction and Maintenance Services company APi (NYSE: APG) fell 3.2%. Is now the time to buy APi? Access our full analysis report here, it’s free.
• Home Construction Materials company Owens Corning (NYSE: OC) fell 3.2%. Is now the time to buy Owens Corning? Access our full analysis report here, it’s free.

Zooming In On First Solar (FSLR)

First Solar’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 23 days ago when the stock dropped 15% on the news that the company reported fourth-quarter earnings per share (EPS) that missed analyst expectations and issued a weaker-than-expected revenue forecast for 2026. 

The solar panel maker projected net sales for 2026 to be between $4.9 billion and $5.2 billion, with the midpoint falling significantly below analysts' average forecast of around $6.1 billion. In addition to the weak guidance, the company's fourth-quarter EPS of $4.84 also fell short of Wall Street estimates. This combination of an earnings miss and a disappointing outlook for the year ahead prompted a negative reaction from investors.

First Solar is down 29.7% since the beginning of the year, and at $192.96 per share, it is trading 32.2% below its 52-week high of $284.59 from December 2025. Despite the year-to-date decline, investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $2,358.

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