10 Cheap Clean Energy Stocks To Buy According to Hedge Funds

5. Shoals Technologies (NASDAQ:SHLS)  

Number of Hedge Fund Investors: 33  

Forward P/E Ratio as of September 8: 15.66

Shoals Technologies (NASDAQ:SHLS) is a leader in the alternative fuels sector, specializing in both solar energy and electric vehicles. Shoals Technologies (NASDAQ:SHLS) has over 66 patents and its products are installed in more than 62 GW of solar systems globally. The company is known for its innovations in electrical balance of systems (EBOS) solutions.

The company’s Big Lead Assembly (BLA) System consolidates multiple components into a single unit and streamlines the solar installation process by reducing the need for combiner boxes and wiring. The BLA System has demonstrated about 43% reduction in installation costs and roughly 20% in material costs which enhances both efficiency and safety compared to traditional EBOS systems.

Shoals Technologies (NASDAQ:SHLS) Interconnect System is engineered to simplify the connection of solar panels to the grid, reducing reliance on specialized labor and improving overall efficiency and reliability. The company also provides patented connectors and wire harnesses with in-line fuses that are more cost-effective to produce and transport to simplify solar installations. In the electric vehicle (EV) sector, Shoals Technologies (NASDAQ:SHLS) has developed the EV-BLA system, a cable bus solution that connects multiple EV chargers to a single power center, which reduces installation and material costs in the EV charging infrastructure.

Shoals Technologies (NASDAQ:SHLS) is trading 15.66 times its earnings, which is a 21% discount compared to the sector median of 18.77. As of the second quarter, the stock is held by 33 hedge funds with stakes worth $208.17 million. Joho Capital is the largest shareholder in the company and has stocks worth $60.16 million as of June 30. Analysts hold a consensus Buy rating on the stock and the average price target of $9.28 implies an upside of 55% from its current levels.