10 Most Undervalued Penny Stocks to Buy According to Hedge Funds

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

Share Price as of April 18: $3.38

Forward P/E ratio as of April 18: 8.45

Number of Hedge Fund Holders: 31

Shoals Technologies Group Inc. (NASDAQ:SHLS) provides electrical balance of system (EBOS) solutions and components. It designs, manufactures, and sells various products used by the solar and battery storage industries, such as solar big lead assembly (BLA) solutions, and plug-and-play cable and cabinet solutions.

On February 26, Mizuho Securities analyst Maheep Mandloi reaffirmed a Buy rating on Shoals Technologies Group Inc. (NASDAQ:SHLS) with a $6 price target due to its growth potential despite current challenges. 2024 was tough due to project delays, but Shoals focused on improving its business. It launched new products, expanded into new markets, and won international deals. Mandloi also highlighted that the company’s transition to a Tennessee facility is expected to enhance its performance.

The company’s main business is providing electrical components for large solar projects. In Q4 2024, it made $107 million in revenue and booked $145 million in new orders, which totaled $635 million in backlog. It won $8 million in new international projects, ending with $86 million in international backlog. For the full year 2025, Shoal expects $410-450 million in revenue. Mandloi noted that the company forecasted an 8% year-over-year revenue increase by 2025.