5 Best Solar Energy and Battery Stocks To Buy Now

In this article, we discuss 5 best solar and battery stocks to buy. If you want to read our detailed discussion on the solar and battery industry, head over to 12 Best Solar and Battery Stocks To Buy Now.

5. First Solar, Inc. (NASDAQ:FSLR)

Number of Hedge Fund Holders: 39

First Solar, Inc. (NASDAQ:FSLR) is a global provider for photovoltaic cells. Focusing on the cadmium telluride solar modules, the company is a major supplier in Europe, Asia, and Australia. On June 6, the company announced that it had secured $1 billion in a credit line, with JPMorgan acting as the lead arranger in the process. In addition to this, First Solar, Inc. (NASDAQ:FSLR) revealed that it is developing a research and development Center in Ohio, worth $370 million and expected to be completed in 2024. First Solar, Inc. (NASDAQ:FSLR) is one of the best solar energy stocks to watch.

As per Insider Monkey’s database for the first quarter of 2023, 39 hedge funds were bullish on First Solar, Inc. (NASDAQ:FSLR), in contrast to 44 funds in the last quarter. Robert Pohly’s Samlyn Capital remains a prominent investor in the company, with 558,868 shares worth over $121.5 million. 

4. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 41

Albemarle Corporation (NYSE:ALB) has a core expertise in synthesizing specialty chemicals, and the company’s operations are divided into three segments – Lithium, Bromine, and Catalysts. The Lithium segment aims to supply chemical solutions for usage in the electric vehicle and battery sector. Many of these are used in consumer electronics, be it smartphones or innovative EV applications across the world. Albemarle Corporation (NYSE:ALB) is one of the premier solar energy stocks to buy. 

On July 20, the company announced changes to its joint venture with Mineral Resources. The restructuring of the deal gives more control to Albemarle Corporation (NYSE:ALB) over a jointly owned plant in Australia, while the company is expected to pay around $380 million to Mineral Resources. In addition, the company also declared a quarterly dividend of $0.40 per share on July 18. The dividend is distributable on October 2, to shareholders of record on September 15.

According to Insider Monkey’s database for the first quarter of 2023, 41 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), as opposed to 46 in the previous quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is a significant shareholder, with 222,209 shares valued at over $49.1 million. 

Carillon Tower Advisors had this to say about Albemarle Corporation (NYSE:ALB) in its investor letter from the last quarter of 2022:

“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The stock gave back some of its recent gains amid investor concerns about how the future price of lithium could be affected by a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and Albemarle plays a critical role in the battery value chain and remains well-positioned for the overall continued global adoption of EVs.”

3. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Number of Hedge Fund Holders: 42

SolarEdge Technologies, Inc. (NASDAQ:SEDG) develops and commercializes inverters optimized for direct current that are utilized in solar energy systems. The company provides all kinds of photovoltaic solutions for residential and commercial applications. Lately, the company has been developing solutions for energy storage and has been focused on the electric vehicle segment. On May 3, SolarEdge Technologies, Inc. (NASDAQ:SEDG) realized a 9% increase in share price as it announced improved adjusted earnings for the first quarter of 2023, with a record first quarter revenue of $943.9 million. It is one of the top solar stocks to watch. 

According to Insider Monkey’s database for the first quarter of 2023, 42 hedge funds were bullish on SolarEdge Technologies, Inc. (NASDAQ:SEDG), in contrast to 43 funds in the prior quarter. D E Shaw remains the largest shareholder of the company, with 895,709 shares worth $272.25 million. 

Here is what ClearBridge International Growth EAFE Portfolio had to say about SolarEdge Technologies, Inc. (NASDAQ:SEDG) in its investor letter for the second quarter of 2022:

“We are well-positioned to participate in the accelerating energy transition. High and rising utility costs combined with policy support are driving increased penetration of home solar plus storage systems in Europe. Israel-based SolarEdge Technologies (NASDAQ:SEDG) expects to see significant growth in solar installations in this market led by Germany and Italy, among others, where consumers are not only demanding solar on the roof but a complete system solution including batteries. This phenomenon is accelerating revenue growth for these companies.”

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).”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 82

Tesla, Inc. (NASDAQ:TSLA) is synonymous with electric vehicles and the ecosystem to be built around it. The company is a market leader and specializes in the development, production, and commercialization of electric vehicles, battery solutions, and energy generation. On July 24, EV stocks saw an increase in price, after a decline last week. In line with this, Tesla, Inc. (NASDAQ:TSLA) experienced a 3.22% increase in share price, despite UBS’ latest review for the stock. This can be attributed to the company’s interest in building a plant in India, following a momentous visit of Indian diplomats to the White House.

According to Insider Monkey’s first quarter database, 82 hedge funds hold a bullish position in Tesla, Inc. (NASDAQ:TSLA), compared to 91 funds in the last quarter of 2022. D E Shaw is a prominent shareholder in Tesla, Inc. (NASDAQ:TSLA), with 6.2 million shares worth $1.295 billion.

Baron Opportunity Fund had this to say about Tesla, Inc. (NASDAQ:TSLA) in the first quarter of 2023:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells EVs, related software and components, and solar and energy storage products. Following a sharp decline at the end of 2022, Tesla’s stock rebounded in the first quarter of 2023 on investor expectations that Tesla will continue to grow vehicle deliveries and maintain solid gross and operating margins despite a potential recession, competition in China, and vehicle price reductions. We wrote a long piece on Tesla last quarter and refer readers back to it, because for long-term investors not much has changed over the last three months. Tesla did hold its first Investor Day in March, and several Baron analysts and portfolio managers attended. We toured the Austin Gigafactory, drove in a Cybertruck, boarded a Semi truck, and spoke with a wide swath of Tesla senior managers. During the formal presentation, Tesla highlighted, among other things: (1) its broad and deep bench of executive talent supporting CEO Elon Musk; (2) its “Master Plan 3–Sustainable Energy for All of Earth,” which featured EVs, renewable power from solar and wind, and stationary electric storage; (3) its vehicle assembly innovations, including massive casted parts (building Model Y bodies with single front and rear castings, replacing a substantial number of parts and fastening steps), a stainless steel exoskeleton (for Cybertruck), and its next-generation highly efficient “unboxed process” for its next-gen $25,000 vehicle; (4) a future permanent[1]magnet electric motor that will not require any rare earths; and (5) the massive untapped market opportunity for commercial stationary electric storage, branded Megapack, as the world steadily shifts to renewable energy. As long-term shareholders, we have witnessed Tesla exploit its innovative Model 3/Y now-global mass-market platform to increase vehicle deliveries from barely a standing start to over 1.3 million units, while achieving industry-leading margins and reinforcing its iron-clad balance sheet to almost $23 billion in cash (and effectively no recourse debt). We expect Tesla’s next-generation EV and Megapack products to have a similar impact on company results.”

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