In this article, we will be looking at the 5 best solar stocks for 2021. To see our detailed analysis on the renewable energy sector and its future outlook, you can go directly to the 12 Best Solar Stocks for 2021.
5. Brookfield Renewable Partners L.P. (NYSE: BEP)
Number of Hedge Fund Holders: 24
Brookfield Renewable Partners L.P. (NYSE: BEP) is a renewable energy company operating mainly in North America, Colombia, Brazil, Europe, India, and China. It uses solar power to generate electricity, alongside hydroelectric, wind, and other renewable energy sources. The company ranks 5th on our list of the best solar stocks for 2021.
On June 28th, Brookfield Renewable Partners L.P. (NYSE: BEP) was upgraded to Outperform by Credit Suisse, with a $45 price target. This March, the company also announced its plans to build a green hydrogen production plant with Plug Power (NASDAQ: PLUG), which would utilize 100% of Brookfield Renewable Partners L.P.’s (NYSE: BEP) hydroelectric powered renewable energy. The stock also got upgraded to Equal Weight with a $42 price target by Wells Fargo this May.
In the first quarter of 2021, Brookfield Renewable Partners L.P. (NYSE: BEP) had EPS of -$0.24, missing estimates by -$0.23, while its $1.02 billion revenue represented a 28.78% growth year over year and beat estimates by $92.07 million. The company has a gross profit margin of 66.88% and the stock has gained 53.38% in the past year.
By the end of the first quarter of 2021, 24 hedge funds out of the 866 tracked by Insider Monkey held stakes in Brookfield Renewable Partners L.P. (NYSE: BEP). The total value of their stakes was roughly $223 million. This is compared to the previous quarter’s 20 hedge fund holders with a total stake value of approximately $277 million.
ClearBridge Investments, an investment management firm, mentioned Brookfield Renewable Partners L.P. (NYSE: BEP) in their first-quarter 2021 investor letter. Here‘s what they said:
“U.S. renewables utility Brookfield Renewable was another detractor. Brookfield Renewable is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”
4. SolarEdge Technologies, Inc. (NASDAQ: SEDG)
Number of Hedge Fund Holders: 32
SolarEdge Technologies, Inc. (NASDAQ: SEDG) develops DC inverter systems for solar photovoltaic installations worldwide. It provides power optimizers, communication devices, and smart energy management solutions for residential, commercial, and small utility-scale solar installations and inverters. The company ranks 4th on our list of the best solar stocks for 2021.
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. The stock has gained 111.33% in the past year, and according to the Wall Street Journal, it 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) develops residential solar energy systems in the US. The company also sells solar energy systems and products, such as solar panels. It ranks 3rd on our list of the best solar stocks for 2021.
On June 16th, Morgan Stanley raised its price target for Sunrun Inc. (NASDAQ: RUN) to $91, commenting that the stock was among the “most compelling” 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%, and the stock has gained 201.44% 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.
2. Vistra Corp. (NYSE: VST)
Number of Hedge Fund Holders: 46
Vistra Corp. (NYSE: VST) is an electricity provider in the US with a generation capacity of about 38,700 MW. The company’s portfolio mainly includes solar, nuclear, and battery energy storage facilities and it ranks 2nd on our list of the best solar stocks for 2021.
This April, Vistra Corp. (NYSE: VST) announced its quarterly dividend of $0.15 per share with a forward yield of 3.52% and payable on June 30th. In the first quarter of 2021, Vistra Corp. (NYSE: VST) had EPS of -$2.89, missing estimates by -$0.85. The company’s revenue for the quarter was $3.21 billion, representing a 12.21% growth year over year and beating estimates by $1.88 billion. The stock has gained 0.37% in the past year, and Vistra Corp. (NYSE: VST) has a gross profit margin of 13.5%.
By the end of the first quarter of 2021, 46 hedge funds out of the 866 tracked by Insider Monkey held stakes in Vistra Corp. (NYSE: VST). The total value of their stakes was roughly $1.25 billion. This is compared to the previous quarter’s 39 hedge fund holders with a total stake value of approximately $1.36 billion.
1. 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 12.07% in the past 6 months and 10.75% year to date, and the company’s gross profit margin is 44.59%.
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.
You can also take a look at 10 Best Solar Energy Stocks To Buy Now and 11 Best Clean Energy Stocks To Buy.
