10 Cheap Clean Energy Stocks To Buy According to Hedge Funds

2. First Solar (NASDAQ:FSLR)  

Number of Hedge Fund Investors: 66  

Forward P/E Ratio as of September 8: 15.91

First Solar (NASDAQ:FSLR) is a leading solar energy company in the United States, specializing in the production of thin-film photovoltaic (PV) solar panels for large-scale solar power installations. The company also operates facilities in Vietnam and Malaysia.

In Q2, First Solar (NASDAQ:FSLR) reported a 24.7% increase in revenue, reaching $1.01 billion, while EBITDA surged 95% year-over-year to $470 million, driven by higher selling prices and improved gross margins. The company achieved a robust gross margin of 49.4%. With strong demand for its products and an order backlog extending to 2030, First Solar is expanding its production capabilities. It has recently completed an expansion at its Ohio plant and is constructing new facilities in Louisiana and Alabama. These expansions are expected to nearly double its U.S. production capacity and better position the company to meet the growing demand for solar energy.

First Solar (NASDAQ:FSLR) is in the process of patenting its new TOPCon technology, which is expected to enhance the efficiency of its solar panels. The potential royalties from this patent could provide an additional revenue stream and bolster the company’s financial position.

First Solar (NASDAQ:FSLR) is trading 15.91 times its earnings, which is a 32.62% discount compared to the sector median of 22.94. The company’s earnings are expected to grow by 54.78% this year. The stock was held by 66 hedge funds at the end of the second quarter with stakes worth $1.68 billion. As of June 30, Citadel Investment Group is the largest shareholder in the company with a stake worth $766.56 million. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $292.69, which represents a 33.52% upside potential from its current level.