10 Best Renewable Energy Penny Stocks to Invest In

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1. Shoals Technologies Group, Inc. (NASDAQ:SHLS)

Number of Hedge Fund Holders: 27

Stock Price as of November 22: $4.40

Shoals Technologies (NASDAQ:SHLS) is a prominent player in the solar energy and electric vehicle industries. The company has successfully deployed its products across over 62 GW of solar systems globally and holds an impressive portfolio of more than 66 patents. Shoals Technologies is widely recognized for its cutting-edge electrical balance of systems (EBOS) solutions, which have established a new standard in the industry.

On November 12, Shoals Technologies’ (NASDAQ:SHLS) reported results for the third quarter ended September 30. The company experienced a year-over-year revenue decline of 24%, due to project delays. However, the company’s net loss was recorded at $300,000 compared to $9.8 million during the prior-year period, which indicates a potential recovery trend. The company’s gross profit percentage came at 24.8% compared to 10.5% in the prior-year period. This increase in gross profit percentage was primarily due to the decrease in wire insulation shrinkback expenses. As of September 30, Shoals Technologies’ (NASDAQ:SHLS) has a backlog and awarded orders totaling $596.6 million.

Shoals Technologies (NASDAQ:SHLS) has introduced a variety of innovative products designed to optimize solar and electric vehicle (EV) installations. The company’s revolutionary Big Lead Assembly (BLA) System transformed the solar installation technology by integrating multiple components into a single unit, which cuts installation costs by 43% and material costs by 20%.

Furthermore, Shoals Technologies’ (NASDAQ:SHLS) Interconnect System streamlines the process of connecting solar panels to the grid, reducing reliance on specialized labor and increasing efficiency. The company’s patented connectors and wire harnesses with in-line fuses also provide a cost-effective solution for solar installations.

While we acknowledge the potential of Shoals Technologies (NASDAQ:SHLS) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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