10 Cheap Clean Energy Stocks To Buy According to Hedge Funds

4. Nextracker (NASDAQ:NXT)  

Number of Hedge Fund Investors: 39  

Forward P/E Ratio as of September 8: 11.23

Nextracker (NASDAQ:NXT) offers solar tracking solutions for both utility-scale and distributed generation projects. Since its initial public offering in 2023, the company has achieved notable double-digit returns, benefiting from its strong market position and the overall expansion of the solar energy sector.

According to Precedence Research, the global solar power market, valued at $269.07 billion in 2024, is expected to grow to approximately $495.12 billion by 2034, with a compound annual growth rate (CAGR) of 6% over this period. As of June, Nextracker (NASDAQ:NXT) demonstrated strong financial health, holding $472 million in cash and short-term investments, and reducing its debt-to-capital ratio from 24% in 2023 to 11% in 2024. Given the anticipated growth in the solar sector, Nextracker is well-positioned to maintain its robust performance, offering promising prospects for continued revenue growth and profitability in the years ahead.

Nextracker (NASDAQ:NXT) stock is trading at a forward PE of 11.23, a 40% discount to its sector median of 18.77. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $59.93, which represents a 46.14% upside potential from its current level. As of the second quarter, the stock is held by 39 hedge funds and the stakes amount to $672.68 million.