10 Best Small-Cap Stocks to Buy Now

3. Sunrun Inc. (NASDAQ:RUN)

Analyst Upside: 99.06%

No. of Hedge Fund Holders: 38

Sunrun Inc. (NASDAQ:RUN) is one of the leading residential solar energy providers in the United States that offers solar panels, battery storage, and energy management services. The company is limiting its reliance on fossil fuels by providing homeowners with affordable and sustainable solar energy solutions. The company’s major customer base is residential homeowners seeking renewable energy options and grid independence.

On January 28, Jefferies analyst Julian Dumoulin-Smith downgraded the price target on RUN shares from $19 to $17, keeping a Buy rating on the stock. The analyst expects Sunrun to post a strong outcome in Q4 2024, with effective execution anticipated on cash generation targets. Sunrun seems to be on track to meet its 2025 cash flow objectives despite the recent softness in the residential solar market and growing uncertainties.

Despite the short-term challenges, Sunrun Inc. (NASDAQ:RUN) has nearly doubled its market share in California. The company has made notable developments with attaching battery storage to about 60% of its new projects. The execution of storage solutions has jumped by 126%, expanding Sunrun’s addressable market. The company expects to generate $50 to $125 million in cash in Q4 2024, and $350 to $600 million in 2025. As the company continues to focus on its profitability, it expects to install 320 to 350 megawatt-hours of storage and 240 to 250 megawatts of solar capacity moving forward.