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12 Best Solar Power Stocks To Invest In According to Financial Media

In this article, we discuss the 12 best solar power stocks to invest in according to financial media. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Solar Power Stocks To Invest In According to Financial Media

The solar power industry has embarked on an extraordinary growth trend in the past two years after recovering from the pandemic lockdowns, supply chain problems, and inflation-related pricing issues since late 2019. According to a report by solar research firm Solar Power Europe, 239 GW of solar power was installed around the globe in 2022, a more than 45% jump compared to 2021. In 2023, these numbers are expected to be 341 GW and 43% respectively. During 2020 and 2021, the growth numbers for the solar industry had clocked in around 20%.

Countries around the world are investing in the manufacture of solar panels to decrease their dependence on fossil fuel-based energy projects. The war in Ukraine, which cut off Europe from Russian energy sources and sparked a crisis, acted as a catalyst for this change. Solar Power Europe projects that by 2027, nearly 800 GW of new solar power will be added to the global supply annually. In 2022, the world achieved 1 TW of global installed solar power.  By 2030, the world will be adding 1 TW of solar to the grid every year. 

One of the biggest drivers of this growth has been that solar remains the cheapest option for new electricity generation in a majority of countries around the globe. This is why the solar market remained resilient during the pandemic. Despite rising installation costs due to inflation pricing, people still preferred investing in solar as opposed to costlier alternatives that are also less reliable. First like First Solar, Inc. (NASDAQ:FSLR), Enphase Energy, Inc. (NASDAQ:ENPH), and Array Technologies, Inc. (NASDAQ:ARRY) benefited as a result. 

The International Energy Agency estimates that solar power will overtake coal in terms of installed power capacity by 2027. It will even overtake natural gas in this regard a year earlier. Solar firms are well positioned to take advantage of this boom. Mark Widmar, the CEO of First Solar, Inc. (NASDAQ:FSLR), recently outlined how his company is now focusing on the growth of manufacturing capacity to ride the increase in demand for solar panels in the US, Europe, and around the world. 

“Our focus on delivering value extends to our manufacturing expansion strategy. And we are making tangible progress toward achieving our forecasted 25 gigawatts of global nameplate capacity by 2026.

And construction of our India facility is completed, and production has commenced. Commercial shipments are expected to begin once the factory receives the Bureau of India Standard certification, remaining government, which is expected by year-end. In September, we mobilized on our new Louisiana manufacturing facility, our fifth fully vertically integrated factory in the United States. At a ceremony attended by the Governor of Louisiana, we set in motion that we’re expected to deliver 3.5 gigawatts of annual nameplate capacity, which is anticipated to commence operation at the end of 2025.

When completed, we expect $1.1 billion facility is projected to take us to approximately 14 gigawatts of annual nameplate capacity in the United States, further enhancing our ability to serve the market with domestically made modules. Meanwhile, we continue to make steady progress on the construction of our new Alabama facility, which is expected to commence operation in the second half of 2024, and our Ohio manufacturing expansion, which is projected to commence operation in the first half of 2024. Additionally, our new R&D innovation center and our First product development line announced at Analyst Day are also on track, representing an expected combined investment of $450 million. The prospect development line and R&D center are expected to commence operation in the first half of 2024 and reflect our determination to lead the industry in developing the next generation of PV technologies, optimizing across efficiency, energy, and costs.

Crucially, as our manufacturing footprint continues to grow, so does our supply chain. In the U.S., we recently expanded our agreement with Vitro Architectural Glass, which is investing in upgrading existing facilities in the United States to produce glass for our solar panels. The expanded capacity commitment from Vitro to First Solar is expected to commence production in the first quarter of 2026. Today, First Solar is one of the largest consumers of flow glass in the United States.”

Our Methodology

To select stocks for this list, we scoured the top stock picks in the solar world as recommended by prominent financial websites. The websites consulted for this purpose include Forbes, The Motley Fool, Business Insider, Morningstar, Kiplinger, The Street, and Investopedia. Only articles from 2023 were considered. The top twelve consensus picks were then selected. The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the third quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

A construction crew working on a solar energy system, revealing the company’s drive for success.

Best Solar Power Stocks To Invest In According to Financial Media

12. Sunworks, Inc. (NASDAQ:SUNW)

Number of Hedge Fund Holders: 1     

Number of Times Stock Appeared in Top Picks of Financial Media: 1

Sunworks, Inc. (NASDAQ:SUNW) operates from California and markets photovoltaic power systems for use in a variety of purposes. On November 15, investment advisory Roth MKM maintained a Neutral rating on Sunworks, Inc. (NASDAQ:SUNW) stock and raised the price target to $35 from $1.2. 

At the end of the third quarter of 2023, 1 hedge fund in the database of Insider Monkey held stakes worth $13,000 in Sunworks, Inc. (NASDAQ:SUNW), compared to 3 in the previous quarter worth $103,000.

Just like First Solar, Inc. (NASDAQ:FSLR), Enphase Energy, Inc. (NASDAQ:ENPH), and Array Technologies, Inc. (NASDAQ:ARRY), Sunworks, Inc. (NASDAQ:SUNW) is one of the best solar power stocks to invest in according to financial media.

11. Nextracker Inc. (NASDAQ:NXT)

Number of Hedge Fund Holders: 26 

Number of Times Stock Appeared in Top Picks of Financial Media: 1

Nextracker Inc. (NASDAQ:NXT) is an energy solutions company that provides solar tracker and software solutions for utility-scale and ground-mounted distributed generation solar projects worldwide. On December 19, investment advisory Piper Sandler initiated coverage of Nextracker Inc. (NASDAQ:NXT) stock with an Overweight rating and a price target of $60.

At the end of the third quarter of 2023, 26 hedge funds in the database of Insider Monkey held stakes worth $341 million in Nextracker Inc. (NASDAQ:NXT), compared to 38 in the preceding quarter worth $563 million. 

10. SunPower Corporation (NASDAQ:SPWR)

Number of hedge fund holders: 15

Number of Times Stock Appeared in Top Picks of Financial Media: 2

SunPower Corporation (NASDAQ:SPWR) is a company that offers solar solutions. On December 18, investment advisory Raymond James maintained an Outperform rating on SunPower Corporation (NASDAQ:SPWR) stock. 

At the end of the third quarter of 2023, 15 hedge funds in the database of Insider Monkey held stakes worth $21 million in SunPower Corporation (NASDAQ:SPWR), compared to 17 in the previous quarter worth $80 million.

9. Canadian Solar Inc. (NASDAQ:CSIQ)

Number of Hedge Fund Holders: 10 

Number of Times Stock Appeared in Top Picks of Financial Media: 4

Canadian Solar Inc. (NASDAQ:CSIQ) designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. On December 18, investment advisory Goldman Sachs upgraded Canadian Solar Inc. (NASDAQ:CSIQ) stock to Neutral from Sell with a price target of $25, noting the stock had a balanced risk/reward profile. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Canadian Solar Inc. (NASDAQ:CSIQ) with 1 million shares worth more than $25 million. 

8. Daqo New Energy Corp. (NYSE:DQ

Number of Hedge Fund Holders: 18    

Number of Times Stock Appeared in Top Picks of Financial Media: 4

Daqo New Energy Corp. (NYSE:DQ) manufactures and sells polysilicon to photovoltaic product manufacturers. In late October, Daqo New Energy Corp. (NYSE:DQ) posted earnings for the third quarter of 2023, reporting a revenue of more than $484 million. 

At the end of the third quarter of 2023, 18 hedge funds in the database of Insider Monkey held stakes worth $281 million in Daqo New Energy Corp. (NYSE:DQ), compared to 22 in the previous quarter worth $350 million.

7. JinkoSolar Holding Co., Ltd. (NYSE:JKS)

Number of Hedge Fund Holders: 12  

Number of Times Stock Appeared in Top Picks of Financial Media: 5

JinkoSolar Holding Co., Ltd. (NYSE:JKS) engages in the design, development, production, and marketing of photovoltaic products. In late October, JinkoSolar Holding Co., Ltd. (NYSE:JKS) posted earnings for the third quarter of 2023, reporting a revenue of more than $4.3 billion, up 63% compared to the revenue over the same period last year. 

At the end of the third quarter of 2023, 12 hedge funds in the database of Insider Monkey held stakes worth $63 million in JinkoSolar Holding Co., Ltd. (NYSE:JKS), the same as in the preceding quarter worth $84 million. 

6. Sunrun Inc. (NASDAQ:RUN)

Number of Hedge Fund Holders: 26

Number of Times Stock Appeared in Top Picks of Financial Media: 5

Sunrun Inc. (NASDAQ:RUN) develops and installs residential solar energy systems. On December 19, investment advisory Piper Sandler upgraded Sunrun Inc. (NASDAQ:RUN) stock to Overweight from Neutral and raised the price target to $31 from $15. 

Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in Sunrun Inc. (NASDAQ:RUN) with 13.9 million shares worth more than $175 million. 

Alongside First Solar, Inc. (NASDAQ:FSLR), Enphase Energy, Inc. (NASDAQ:ENPH), and Array Technologies, Inc. (NASDAQ:ARRY), Sunrun Inc. (NASDAQ:RUN) is one of the best solar power stocks to invest in according to financial media.

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Disclosure. None. 12 Best Solar Power Stocks To Invest In According to Financial Media is originally published on Insider Monkey.

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The “Toll Booth” Operator of the AI Energy Boom

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…