In this article, we will discuss 5 best wind power and solar stocks to buy. To read our detailed analysis of the wind and solar segments in the energy sector, go to 10 Best Wind Power and Solar Stocks To Buy.
5. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 34
SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations worldwide. The company operates through five business segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines.
On May 2, SolarEdge Technologies, Inc. (NASDAQ:SEDG) announced earnings for the fiscal first quarter of 2022. The company registered an EPS of $1.20 and generated revenues of $655.08 million, up 61.55% year over year, and outperformed revenue consensus by $20.75 million.
Shortly after SolarEdge Technologies, Inc. (NASDAQ:SEDG) reported Q1 2022 earnings, Needham analyst Vikram Bagri raised his price target on the stock to $390 from $347 and maintained a Buy rating on the shares. Bagri further noted the company’s market-beating Q1 performance and told investors that the company is well-positioned to experience growing margins in the second half of 2022, citing robust demand to be a key driver. SolarEdge Technologies, Inc. (NASDAQ:SEDG) is among the 5 best wind power and solar stocks to buy.
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is becoming a popular stock pick among investor circles. At the end of the fourth quarter of 2021, 34 hedge funds were long SolarEdge Technologies, Inc. (NASDAQ:SEDG) with stakes of $766.59 million. This is compared to 33 hedge funds in the third quarter with stakes worth $594.46 million. The hedge fund sentiment for the stock is positive.
As of March 31, 2022, Montanaro Asset Management is the most bullish hedge fund on SolarEdge Technologies, Inc. (NASDAQ:SEDG). The fund’s stakes were valued at $50.54 million, which represents 6.22% of its 13F portfolio.
ClearBridge Investments, an investment management firm, published its first-quarter 2022 investor letter, in which it shared its insights on SolarEdge Technologies, Inc. (NASDAQ:SEDG). Here is what the firm said:
“SolarEdge Technologies (NASDAQ:SEDG) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
4. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 36
First Solar, Inc. (NASDAQ:FSLR) is a prominent provider of photovoltaic solar energy solutions in the United States, Japan, France, Canada, India, Australia, and internationally. Hedge funds are piling into First Solar, Inc. (NASDAQ:FSLR). According to Insider Monkey’s database, 36 hedge funds held stakes in First Solar, Inc. (NASDAQ:FSLR) at the end of the fourth quarter of 2021. These stakes were valued at $199.91 million.
On April 28, 2022, First Solar, Inc. (NASDAQ:FSLR) released its earnings report for the fiscal first quarter of 2022. The company reported a loss per share of $0.42 but outperformed EPS estimates by $0.02. Moreover, the company reported quarterly revenues of $367.04 million.
First Solar, Inc. (NASDAQ:FSLR) is making strides in the clean energy space and is announcing a multitude of orders and collaborations. This April, the company announced that it has secured a 750 MW order for its thin-film PV solar modules from Origis Energy, a leading global solar and energy company. Then on April 12, First Solar, Inc. (NASDAQ:FSLR) announced that it will be supplying 4 GW worth of DC PV solar modules between 2023 and 2025 to Silicon Ranch, one of America’s largest independent power producers. Moreover, Nevada Gold Mines, a joint venture between Barrick Gold Corporation (NYSE:GOLD) and Newmont Corporation (NYSE:NEM), is investing in a 200 MW solar power plant designed to accelerate its decarbonization program. Nevada Gold Mines will be working with First Solar, Inc. (NASDAQ:FSLR) to manufacture all modules required to support the 200 MW construction, which is expected to begin in the third quarter of 2022. First Solar, Inc. (NASDAQ:FSLR) is becoming a go-to solar solutions provider, which makes it the fourth-best wind power and solar stock to buy.
On April 29, Baird analyst Ben Kallo raised his price target on First Solar, Inc. (NASDAQ:FSLR) to $98 from $91 and reiterated an Outperform rating on the shares. Kallo noted that the company is exploring partnerships in efforts to expand its operations, and is consistently innovating to extract value from the acceleration of electrification and green hydrogen production.
Lee Munder Capital Group is the most prominent shareholder in First Solar, Inc. (NASDAQ:FSLR) with stakes worth $10.27 million in the company. The investment covers 0.59% of Lee Munder Capital’s investment portfolio.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 50
Enphase Energy, Inc. (NASDAQ:ENPH) is another industry-leading designer, developer, and seller of home energy solutions for the solar photovoltaic industry in the United States and internationally. By the end of the fourth quarter of 2021, Enphase Energy Inc. (NASDAQ:ENPH) was spotted on 50 hedge fund portfolios. The stakes of these hedge funds totaled $763.28 million, up from $637.78 million in the prior quarter with 52 positions.
In addition to being a top stock pick among investor circles, Enphase Energy, Inc. (NASDAQ:ENPH) is being closely watched by expert analysts as well. On May 2, 2022, leading American bank holding company Truist assumed coverage of Enphase Energy, Inc. (NASDAQ:ENPH) with a Buy rating and a $205 price target.
This April, Enphase Energy, Inc. (NASDAQ:ENPH) reported market-beating earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.79, beating estimates by $0.10. The company’s revenues grew 46.24% year over year and came in at $441.29 million, outperforming market consensus by $7.64 million. Enphase Energy, Inc. (NASDAQ:ENPH) is surging and as of May 13, the stock’s trailing twelve-month returns are up 22.97%, which makes it a high-momentum wind power and solar stock to buy.
As of the end of this March, Quaero Capital is the top shareholder in Enphase Energy, Inc. (NASDAQ:ENPH). The fund upped its Q4 2021 stakes by 6%, bringing its Q1 2022 stakes to $10.52 million, which covers 6.61% of Quaero Capital’s 13F portfolio.
ClearBridge Investments mentioned Enphase Energy, Inc. (NASDAQ:ENPH) in its “Sustainability Leaders Strategy” first-quarter 2022 investor letter. Here is what the investment management firm had to say:
“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 55
NextEra Energy, Inc. (NYSE:NEE) generates, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. In 2020, NextEra Energy, Inc. (NYSE:NEE) added 13 wind farms in ten states which grew its wind portfolio by over 2,300 MW. The company expects to bring about 3,700 to 4,400 MW of additional wind energy in 2022 and currently operates 136 wind projects that span over 19 U.S. states and 4 Canadian provinces. NextEra Energy, Inc. (NYSE:NEE) is one of the world’s largest producers of wind and solar energy and is, therefore, the second-best wind power and solar stock to buy.
This April NextEra Energy, Inc. (NYSE:NEE) reported earnings for the fiscal first quarter of 2022 in which it beat EPS estimates by $0.02. The company generated quarterly revenues of $2.89 billion and registered an EPS of $0.74.
Credit Suisse analyst Nicholas Campanella sees NextEra Energy, Inc. (NYSE:NEE) as “fundamentally attractive”, and on April 25, assumed coverage of the company with an Outperform rating and an $87 price target. Campanella contends that NextEra Energy, Inc. (NYSE:NEE) is well-positioned to benefit from current cost inflation and has a competitive advantage over rivals due to its size and scale.
Hedge funds are making sizeable investments in NextEra Energy, Inc. (NYSE:NEE). At the close of the fourth quarter of 2021, 55 hedge funds were long NextEra Energy, Inc. (NYSE:NEE) with stakes worth $2.61 billion. This is compared to 53 hedge funds in Q3 2021 with stakes of $2.37 billion. The hedge fund sentiment for the stock is positive.
As of the end of this March, Fisher Asset Management owns the most shares of NextEra Energy, Inc. (NYSE:NEE), approximately 15.66 million, which makes it the dominating shareholder in the company. The fund’s stakes are valued at $1.32 billion, which covers 0.78% of Ken Fisher’s hedge fund portfolio.
1. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 57
General Electric Company (NYSE:GE) operates as a high-tech industrial company across the globe. The company’s four business segments include Power, Renewable Energy, Aviation, and Healthcare. The renewable energy sector provides industry-leading solutions for customers by combining onshore and offshore wind turbines, blade manufacturing, grid solutions, hydro, storage, and hybrid renewables. The company’s renewable energy business is one of the world’s top wind turbine suppliers and boasts installation of over 49,000 units that are generating wind electricity across the globe, and makes General Electric Company (NYSE:GE) the best wind power and solar stock to buy.
This April, Deutsche Bank analyst Nicole DeBlase slashed her price target on General Electric Company (NYSE:GE) to $107 from $118 to reflect supply-chain pressures impacting the company’s renewables and healthcare segments, but maintained a Buy rating on the shares. Regardless, DeBlase sees General Electric Company (NYSE:GE) as capable of achieving the low end of its earnings guidance in 2022.
On April 26, General Electric Company (NYSE:GE) released an earnings report for the fiscal first quarter of 2022. The company reported earnings per share of $0.24 and beat EPS estimates by $0.04. The company’s quarterly revenues totaled $17.04 billion, of which $2.9 billion were attributed to the renewable energy segment, and outperformed market consensus by $122.94 million.
General Electric Company (NYSE:GE) is a top stock pick among investor circles. Insider Monkey found 57 hedge funds bullish on General Electric Company (NYSE:GE) at the end of Q4 2021. The collective stakes of these funds came in at $6.26 billion, up from $6.24 billion in the prior quarter with 53 positions.
As of March 31, 2022, Pzena Investment Management owns an astounding 11.05 million shares of General Electric Company (NYSE:GE) which equates to a stake value of $1.01 billion. Pzena Investment Management is the top shareholder in the company.
Here is what Vulcan Value Partners had to say about General Electric Company (NYSE:GE) in its third-quarter 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated to more discounted companies.”
You can also take a look at 10 Energy Dividend Stocks with Over 2% Yield and 10 Best Renewable Energy Stocks to Buy Now.
