5 Best Clean Energy Stocks to Invest In

3. Enphase Energy Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holdings: 53

Based in Fremont, California, Enphase Energy (NASDAQ:ENPH) is an American energy technology company which focuses on the development and manufacture of solar micro-inverters, battery energy storage, and EV charging stations, primarily targeting residential customers. It is one of the first companies in the world to produce and commercialize the solar micro-inverter, which successfully facilitates the transition from direct current power generated by a solar panel, into grid-compatible alternating current for use or export. Enphase (NASDAQ:ENPH) has reported an annual revenue growth of 67.75% year-on-year in Q2 2022, posting a total revenue of $530.2 million. In Q2 2022, the company posted an EPS of $1.07, beating estimates of $0.84 by $0.23. As of the second quarter of 2022, the company stock seems to be heavily valued based on multi-year estimates.

On August 8, JPMorgan analyst Mark Strouse elevated the price target on Enphase Energy (NASDAQ:ENPH) to $321 from $261, keeping an Overweight rating on the shares.

Here is what ClearBridge Investments had to say about Enphase Energy (NASDAQ:ENPH) in their Q1 2022 investor letter:

“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”