10 Best Solar Stocks to Buy in 2025

6. Shoals Technologies Group Inc. (NASDAQ:SHLS)

Upside Potential: 75%

Number of Hedge Fund Holders: 31

Shoals Technologies Group Inc. (NASDAQ:SHLS) focuses on providing electrical balance-of-system (EBOS) solutions for solar energy projects. Their offerings include critical components like combiner boxes, wiring solutions, and connectors, which are designed to improve the efficiency and reliability of solar installations. EBOS encompasses all the essential parts required to transfer the electric current generated by solar panels to an inverter and, eventually, to the power grid.

On February 26, Mizuho Securities analyst Maheep Mandloi reaffirmed a Buy rating with a $6 price target on Shoals Technologies Group (NASDAQ:SHLS), citing growth potential despite current challenges. The analyst noted that the company forecasted an 8% year-over-year revenue increase by 2025, slightly below earlier projections but within a promising range. Additionally, management aims for a long-term gross margin of 40-45% through cost reductions and automation. Along with this, growing bookings and 2025 capital expenditures are expected to boost productivity by 2026. That analyst also highlighted that despite competitive pressures impacting margins, the company’s transition to a Tennessee facility and strategic initiatives are expected to enhance future performance.