In this article, we discuss the 5 best solar energy stocks to invest in. If you want to read our detailed analysis of the renewable energy industry, go directly to the 12 Best Solar Energy Stocks to Invest In.
5. Sunnova Energy International Inc. (NYSE: NOVA)
Number of Hedge Fund Holders: 26
Sunnova Energy International Inc. (NYSE: NOVA) is a residential solar and energy storage service provider in the US. The company offers operations and maintenance, alongside monitoring, repairs, replacements, and equipment upgrades, among other services. The company ranks 5th on our list of the best solar energy stocks to invest in.
In the first quarter of 2021, Sunnova Energy International Inc. (NYSE: NOVA) had EPS of -$0.27, and its revenue came in at $41.28 million. The stock has also gained 84.77% in the past year and has a market cap of $3.95 billion. According to the Wall Street Journal, Sunnova Energy International Inc. (NYSE: NOVA) has a consensus Buy rating, with 10 Buy ratings.
By the end of the first quarter of 2021, 26 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sunnova Energy International Inc. (NYSE: NOVA). The total value of their stakes was roughly $327 million. This is compared to the previous quarter’s 32 hedge fund holders with a total stake value of approximately $684 million.
4. SolarEdge Technologies, Inc. (NASDAQ: SEDG)
Number of Hedge Fund Holders: 32
SolarEdge Technologies, Inc. (NASDAQ: SEDG) is a developer of direct current optimized inverter systems for solar photovoltaic installations worldwide. The company offers power optimizers, communication devices, and smart energy management solutions for residential, commercial, and small utility-scale solar installations and inverters. It ranks 4th on our list of the best solar energy stocks to invest in.
In the first quarter of 2021, SolarEdge Technologies, Inc. (NASDAQ: SEDG) had EPS of $0.98, and its revenue came in at $405.49 million, beating estimates by $9.92 million. According to the Wall Street Journal, the stock has gained 94.84% in the past year and has Buy ratings from 13 analysts.
By the end of the first quarter of 2021, 32 hedge funds out of the 866 tracked by Insider Monkey held stakes in SolarEdge Technologies, Inc. (NASDAQ: SEDG). The total value of their stakes was roughly $420 million. This is compared to the previous quarter’s 28 hedge fund holders with a total stake value of approximately $458 million.
Richie Capital Group, an investment management firm, mentioned SolarEdge Technologies, Inc. (NASDAQ: SEDG) in their first-quarter 2021 investor letter. Here’s what they said:
“Our biggest detractors for the quarter included SolarEdge Technologies (SEDG – down 11.2%) – The Smart Energy solar company declined during the quarter along with most other solar energy stocks due to concerns over higher interest rates. Higher interest rates will make it more expensive for businesses and consumers to borrow money for residential and commercial solar projects. We expect interest rates to be somewhat of a headwind for years to come. However, the stronger underlying trends are in their favor. We expect SEDG to be a net winner from the Biden Administration’s infrastructure plan which focuses on Clean Energy.”
3. Sunrun Inc. (NASDAQ: RUN)
Number of Hedge Fund Holders: 41
Sunrun Inc. (NASDAQ: RUN) is a developer and installer of residential solar energy systems in the US. The company also sells solar energy systems and products like panels and racking and ranks 3rd on our list of the best solar energy stocks to invest in.
On June 16th, Sunrun Inc. (NASDAQ: RUN) rallied after Morgan Stanley raised its price target to $91 from the previous $86 figure, in light of the firm considering it one of the “most compelling” stocks in the clean energy sector. In the first quarter of 2021, Sunrun Inc. (NASDAQ: RUN) had EPS of -$0.12, missing estimates by -$0.08, and its revenue was $334.79 million, beating estimates by $10.81 million. The company has a gross profit margin of 17.77%. Sunrun Inc. (NASDAQ: RUN) has gained 177.92% in the past year.
By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sunrun Inc. (NASDAQ: RUN). The total value of their stakes was roughly $24 billion. This is compared to the previous quarter’s 48 hedge fund holders with a total stake value of approximately $30 billion. Like Sunnova Energy International Inc. (NYSE: NOVA), Tesla, Inc. (NASDAQ: TSLA), NextEra Energy, Inc. (NYSE: NEE), and Brookfield Renewable Corporation (NYSE: BEPC), this is a good stock to invest in.
2. Enphase Energy, Inc. (NASDAQ: ENPH)
Number of Hedge Fund Holders: 49
Enphase Energy, Inc. (NASDAQ: ENPH) sells home energy solutions for the solar photovoltaic industry. The company operates in the US and internationally. It also offers semiconductor-based microinverters, which convert energy at the solar module level. The company ranks 2nd on our list of the best solar energy stocks to invest in.
This May, Enphase Energy, Inc. (NASDAQ: ENPH) launched a $500 million buyback program to repurchase shares. In the first quarter of 2021, the EPS of Enphase Energy, Inc. (NASDAQ: ENPH) came in at $0.56, beating estimates by $0.12, and its revenue came in at $301.75 million, representing an increase of 46.81% year over year and beating estimates by $9.32 million. The stock has gained 272.86% in the past year.
By the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Enphase Energy, Inc. (NASDAQ: ENPH). The total value of their stakes was roughly $803 million. This is compared to the previous quarter’s 48 hedge fund holders with a total stake value of approximately $988 million.
1. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) is a manufacturer of EVs and energy generation and storage systems in the US, China, and internationally. The company has two segments, Automotive and Energy Generation and Storage. It ranks 1st on our list of the best solar energy stocks to invest in.
On June 24th, Tesla, Inc. (NASDAQ: TSLA) confirmed that it would be opening the Supercharger network to other automakers by September next year, while just a day before this announcement, the company also opened its first charging station in China with solar and energy storage facilities. The company has mentioned that it plans on developing an energy business in China. Tesla, Inc.’s (NASDAQ: TSLA) Model 3 also ranked 1st on the cars.com 2021 American-Made Index, while the Model Y ranked 3rd, resulting in the stock rallying in the aftermath.
In the first quarter of 2021, the EPS for Tesla, Inc. (NASDAQ: TSLA) was $0.93, beating estimates by $0.15, while its revenue came in at $10.39 billion, increasing by 73.58% year over year and beating estimates by $112.38 million. The stock has gained 2.43% in the past 6 months.
By the end of the first quarter of 2021, 62 hedge funds out of the 866 tracked by Insider Monkey held stakes in Tesla, Inc. (NASDAQ: TSLA). The total value of their stakes was roughly $10.01 billion. This is compared to the previous quarter’s 68 hedge fund holders with a total stake value of approximately $12.3 billion.
You can also take a peek at10 Best Renewable Energy Stocks to Buy Now and 10 Best Alternative Energy Stocks to Buy Now.
