In this piece, we’ll take a look at the 5 Best Solar Energy Stocks to Invest In Heading into 2023. For more such companies, go to 12 Best Solar Energy Stocks to Invest In Heading into 2023.
5. Altus Power, Inc. (NYSE:AMPS)
Number of Hedge Fund Holders: 33
Altus Power, Inc. (NYSE:AMPS) is a clean energy electrification company headquartered in Connecticut, USA. The company creates and operates photovoltaic solar energy storage systems. The company serves commercial, industrial, public sector, and community solar consumers. In addition, Altus Power, Inc. (NYSE:AMPS) engages in several renewable energy certificate (REC) initiatives around the country.
On December 13, 2022, Ryan Levine, an analyst at Citi, reduced his price target on Altus Power, Inc. (NYSE:AMPS) to $10 while keeping a Buy rating on the stock. According to the analyst, the outlook of the company’s growth has improved materially after the Inflation Reduction Act.
As per Insider Monkey’s database, 33 hedge funds remained bullish on Altus Power, Inc. (NYSE:AMPS) at the end of the third quarter.
4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 44
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli company that designs and distributes photovoltaic inverters, energy generation monitoring software, and battery energy storage devices. SolarEdge Technologies, Inc. (NASDAQ:SEDG) sells services to residential, business, and industrial clients.
On December 14, 2022, Christine Cho, an analyst at Barclays, raised her price target on SolarEdge Technologies, Inc. (NASDAQ:SEDG) to $396 and upgraded the stock’s rating to Overweight. The analyst is confident that Europe’s macro dynamics can support the company’s growth and believes that the company can take market share in the near term.
44 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Impax Asset Management had the biggest long position in the company at the end of Q3 2022.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks, and SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of them. Here is what the fund said:
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.
3. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 45
First Solar, Inc. (NASDAQ:FSLR) is a global PV solar energy solutions provider and a major American solar technology company. The company develops and sells PV solar modules using innovative thin film semiconductor technology. First Solar, Inc. (NASDAQ:FSLR) is the world’s largest producer of thin-film PV solar modules.
On November 14, 2022, Corinne Blanchard, an analyst at Deutsche Bank, started covering First Solar, Inc. (NASDAQ:FSLR) with a price target of $180 and a Buy rating on the stock. The analyst believes that the company can strongly benefit from the inflation reduction act due to its domestic manufacturing capacity.
As per Insider Monkey’s database, 45 hedge funds owned stakes in First Solar, Inc. (NASDAQ:FSLR) at the end of the third quarter. D E Shaw remained the leading stakeholder of the company at the end of Q3 2022.
2. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 47
Sunrun Inc. (NASDAQ:RUN) is a company that designs and develops home solar energy systems in the United States. Furthermore, the company provides battery storage systems. Sunrun Inc. (NASDAQ:RUN) completed the acquisition of Vivint Solar, Inc., a prominent full-service home solar supplier in the United States, on October 8, 2020. The company is now the leading residential solar provider in the United States
On November 11, 2022, Elvira Scotto, an analyst at RBC Capital, reduced her price target on Sunrun Inc. (NASDAQ:RUN) to $42 while keeping an Outperform rating on the stock. The analyst believes that the company’s supply chain seems to be improving, and its possible recession outlook seems manageable.
According to Insider Monkey’s database, 47 hedge funds held stakes in Sunrun Inc. (NASDAQ:RUN) at the end of the third quarter ending September 2022. Orbis Investment Management remained the leading stakeholder in the company at the end of Q3 2022.
1. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 59
Enphase Energy, Inc. (NASDAQ:ENPH) is a global energy technology leader founded in 2006. The company develops and manufactures microinverters, solar panels, and energy storage systems for the residential and commercial markets. Enphase Energy, Inc. (NASDAQ:ENPH) has a global reach and operates in more than 21 countries worldwide.
On October 26, 2022, Biju Perincheril, an analyst at Susquehanna, increased his price target on Enphase Energy, Inc. (NASDAQ:ENPH) to $310 from $290 while keeping a Positive rating on the stock. According to the analyst, the Q4 revenue guide indicates a 10% growth which is more than his estimates.
As per Insider Monkey’s database, 59 hedge funds had stakes in Enphase Energy, Inc. (NASDAQ:ENPH) at the end of the third quarter. Two Sigma Advisors remained the leading stakeholder in the company at the end of Q3 2022.
Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its third-quarter 2022 investor letter:
In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.
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