5 Best Solar Energy and Battery Stocks To Buy Now

2. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 55

Enphase Energy, Inc. (NASDAQ:ENPH) is a provider of photovoltaic solutions, with a key focus on the residential market. On July 20, the stock experienced a 4.8% decline, following Wolfe Research downgrading Enphase Energy, Inc. (NASDAQ:ENPH) from Outperform to Peer Perform. This is because the US residential market has seen a bit of decline, as compared to expectations. Although the company has experienced a strong increase internationally over the last 2 years, Wolfe Research analyst Steve Fleishman believes that the market will only get more competitive. However, Enphase Energy, Inc. (NASDAQ:ENPH) remains one of the best solar and battery stocks to buy according to hedge funds. 

According to Insider Monkey’s first quarter database, 55 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), as opposed to the 63 funds in the last quarter. Philippe Laffont’s Coatue Management remains the largest shareholder of the company, with 714,442 shares worth $150.2 million.

Here is what Aristotle Atlantic Large Cap Growth Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its investor letter for the first quarter of 2023:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”