In this article, we discuss the 5 best solar energy stocks to buy today. If you want to read our detailed analysis of these companies, go directly to the 10 Best Solar Energy Stocks to Buy Today.
5. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 37
SolarEdge Technologies, Inc. (NASDAQ:SEDG) ranks fifth on the list of 10 best solar energy stocks to buy today. The Israeli-based solar energy company develops and sells residential solar systems which include power optimizers, inverters, storage, and a monitoring platform.
On August 31, Wolfe Research analyst Steve Fleishman initiated an Outperform rating on SolarEdge Technologies, Inc. (NASDAQ:SEDG), noting that the company’s inverter products are likely to drive solar industry advancement.
In the second quarter of 2021, SolarEdge Technologies, Inc. (NASDAQ:SEDG) reported an EPS of $1.28, beating estimates by $0.17. The company’s revenue in the second quarter was $480.1 million, an increase of 55% year over year, and beat revenue estimates by $24.42 million. The stock has gained 41.5% in the past twelve months.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $675 million in SolarEdge Technologies, Inc. (NASDAQ:SEDG), up from 32 hedge funds in the previous quarter worth $421 million.
4. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 44
Enphase Energy, Inc. (NASDAQ:ENPH) ranks fourth on the list of 10 best solar energy stocks to buy today. The company manufactures and sells microinverters and energy storage for residential and enterprise solar panel systems.
On September 21, KeyBanc analyst Sophie Karp initiated an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) with a price target of $179 per share, emphasizing the solar company’s microinverter market share in the growing residential solar industry in the United States.
In the second quarter of 2021, Enphase Energy, Inc. (NASDAQ:ENPH) reported an EPS of $0.53, beating estimates by $0.11. The company’s second-quarter revenue came in at $316.1 million and beat revenue estimates by $4.82 million. Enphase Energy, Inc. (NASDAQ:ENPH) delivered 2.36 million microinverters in the second quarter of 2021, an increase of over 110% from 1.09 microinverters shipped in the second quarter of 2020. The stock has gained 50% in the past twelve months.
At the end of the second quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $724 million in Enphase Energy, Inc. (NASDAQ:ENPH), down from 49 hedge funds in the previous quarter worth $804 million.
3. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 45
Sunrun Inc. (NASDAQ:RUN) is a San Francisco-based solar energy firm that ranks third on the list of 10 best solar energy stocks to buy today. The company manufactures and sells residential solar energy systems in the US. Sunrun Inc.’s (NASDAQ:RUN) systems are reported to have offset more than 2.5 million metric tons of CO2 in the last twelve months, according to the company’s Q2 report.
On September 9, Needham analyst Vik Bagri initiated a Buy rating on Sunrun Inc. (NASDAQ:RUN) with a price target of $75 per share, highlighting RUN’s 15% share of the residential solar market. The analyst cited that the fast adoption of EVs can keep Sunrun Inc. (NASDAQ:RUN) expanding in the future.
The company’s revenue in the second quarter grew 121% to $401.2 million and beat revenue estimates by $35.13 million. Sunrun Inc. (NASDAQ:RUN) added 26,110 new customers in the second quarter, bringing the total number of customers to 599,743 as of June 30, 2021.
At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $2.52 billion in Sunrun Inc. (NASDAQ:RUN), up from 41 hedge funds in the previous quarter worth $2.40 billion.
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) is a renewable energy provider based in Florida that ranks second on the list of 10 best solar energy stocks to buy today. The company distributes electricity in North America from solar, wind, and nuclear energy. The company also operates coal and natural gas facilities.
On July 13, Credit Suisse analysts initiated coverage of NextEra Energy, Inc. (NYSE:NEE) with an Outperform rating with a price target of $85 per share.
In the second quarter of 2021, NextEra Energy, Inc. (NYSE:NEE) reported an EPS of $0.71, beating estimates by $0.02. The company’s revenue in the second quarter was $3.93 billion. Shares of NextEra Energy, Inc. (NYSE:NEE) increased 18.6% in the past twelve months.
At the end of the second quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $2.67 billion in NextEra Energy, Inc. (NYSE:NEE), down from 63 hedge funds in the previous quarter worth $2.72 billion.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Topping the list of 10 best solar energy stocks to buy today is electric vehicle manufacturer Tesla, Inc. (NASDAQ:TSLA). California-based Tesla, Inc. (NASDAQ:TSLA) is popularly known for being an electric vehicle moat. The company delivered 201,204 electric vehicles in the second quarter of 2021, up 121% year over year. Additionally, Tesla, Inc. (NASDAQ:TSLA) also offers solar panels and energy storage.
On October 4, Wedbush analyst Daniel Ives maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) with a price target of $1,000 per share. The analyst is still bullish on Tesla, Inc. (NASDAQ:TSLA), estimating that the EV behemoth delivered 150,000 Tesla vehicles in September alone.
In the second quarter of 2021, Tesla, Inc. (NASDAQ:TSLA) reported an EPS of $1.45, beating estimates by $0.47. The company’s revenue in the quarter came in at $11.96 billion, an increase of 98% year over year, and beat revenue estimates by $559.33 million.
Tesla, Inc. (NASDAQ:TSLA) posted $801 million in revenue from its energy and storage business, up 62% from Q1 2021 and increased more than 116% year over year. Tesla, Inc. (NASDAQ:TSLA) reported $801 million in sales from its energy and storage division in the second quarter of 2021, up 62% from the previous quarter and grew more than 116% year over year. In comparison to the previous year, the total deployment of energy storage and solar energy in Q2 2021 increased by 205% and 215%, respectively. The stock has gained 64.53% in the past twelve months.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9.29 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 hedge funds in the previous quarter worth $10 billion.
In the Q2 2021 investor letter of Worm Capital LLC, the fund mentioned Tesla, Inc. (NASDAQ:TSLA), and discussed its stance on the firm. Here is what the fund said:
“Tesla underperformed in the quarter, but we maintain our high conviction in the long-term thesis on each business model. Much like art or writing, investment research is a continuous process—it never really ends. Prices can move in either direction in any given quarter, but our advantage often comes from knowing the businesses so well that short-term fluctuations in pricing shouldn’t affect our decision-making. On high conviction positions, this patience is often rewarded, which is why research is so valuable to our process…
..Tesla is in a class of its own. What many in the market seem to (still) not understand is that Tesla is not a car company so much as a complex manufacturing firm—with significant recurring software potential—growing, in our view, at a targeted rate of 50-100% YoY over the next several years. Unlike any other automotive firm in existence today, Tesla alone is a vertically integrated hardware and software business developing state-of-the-art manufacturing techniques that will revolutionize the auto industry (i.e. its Giga Presses, 4680 cells, etc.). It is a generational company and we anticipate it will eventually be the largest company in the world. Many of the conventional narratives around competition displacing Tesla’s lead are fundamentally flawed, and the many headlines surrounding Tesla’s approach to autonomy are frustratingly superficial. (As an aside, we highly recommend watching Andrej Karpathy’s, Tesla’s head of AI, his recent presentation from June: “Tesla details its self-driving Supercomputer that will bring in the Dojo era”)”
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