10 Best Clean Energy Stocks According to Reddit

5. Enphase Energy (NASDAQ:ENPH)  

Number of Hedge Fund Holders: 42  

Market Capitalization as of September 4: $15.3 Billion

Enphase (NASDAQ:ENPH) is a global energy technology company specializing in solar microinverters, energy storage solutions, and energy management systems. Its microinverters convert direct current (DC) from solar panels into alternating current (AC) for practical use, playing a vital role in optimizing solar energy systems by improving efficiency, reliability, and ease of installation. Enphase is a market leader in residential solar, with a strong presence in the United States, Europe, and Asia.

Enphase (NASDAQ:ENPH) is strategically poised to benefit from the U.S. Inflation Reduction Act (IRA), as its microinverters can help customers qualify for a 10% Investment Tax Credit (ITC) through the Domestic Content Bonus Credit provisions. This credit applies to solar products that incorporate a specified percentage of components made in the United States. This advantage is expected to drive higher sales and improve gross margins for the company, especially in Q4 2024.

In Q2, Enphase (NASDAQ: ENPH) reported revenue and earnings slightly below expectations due to weaker sales in Europe. However, the company exceeded expectations with a gross margin of 47.1%. Despite growing competition, Enphase’s microinverter technology remains a top choice among consumers, successfully expanding its market presence. The new California policy, “Net Energy Metering 3.0,” which encourages homeowners to use their solar energy rather than selling it back to the grid, has driven a significant rise in demand for its energy storage systems. In Q2, Enphase reported a 32% revenue increase from the U.S. and has already secured 85% of its Q3 revenue through booked orders.

Enphase (NASDAQ:ENPH) is expected to see continued growth driven by its range of products, including microinverters, energy management software, and battery storage solutions. Industry analysts maintain a consensus Buy rating on the stock, with an average price target of $126.17, reflecting a 7.55% upside potential from current levels. As of September 4, the company has a market valuation of $15.3 billion. The stock is held by 42 hedge funds, with stakes totaling $505.91 million in the second quarter. Citadel Investment Group is the largest shareholder, holding shares worth $141.66 million as of June 30.