5 Cheap Solar Stocks To Buy According To Analysts

In this article, we discuss the 5 cheap solar stocks to buy according to analysts. To read the detailed analysis of the solar energy industry, go directly to the 11 Cheap Solar Stocks To Buy According To Analysts.

 5. Ameresco, Inc. (NYSE:AMRC)

Average analyst price target: $48.40

Average analyst price target upside as of November 6: 81.89%

Ameresco, Inc. (NYSE:AMRC) offers energy efficiency solutions in North America and Europe. The company provides solar power industrial solutions, integration of solar systems and kits, and solar components.

According to Insider Monkey’s database that tracks 910 elite hedge funds, 17 hedge funds had a stake in Ameresco, Inc. (NYSE:AMRC) in Q1 and Q2. While the number of hedge funds remained the same, the total hedge fund investment almost doubled as it went up to $99.968 million from $51.065 million.

On November 6, Ameresco, Inc. (NYSE:AMRC) announced its Q3 earnings result in which it reported a non-GAAP EPS of $0.40 and generated revenues of $335.15 million. For the full year 2023, the company management is looking at revenue between $1.315-$1.370 billion. The company’s gross margin outlook stands between 18.5-19%. In addition, Ameresco, Inc. (NYSE:AMRC) expects an EPS of $1.15-$1.25 and an adjusted EBITDA between the range of $160-170 million.

Ameresco, Inc. (NYSE:AMRC) was mentioned in Alger Capital’s third-quarter investor letter. Here is what it said:

“Ameresco, Inc. (NYSE:AMRC) is one of largest energy service companies in North America. The company provides design and implementation of infrastructure upgrade projects, aimed at reducing energy usage, and manages onsite operations and maintenance following the completion of projects. Energy efficiency is an underappreciated dimension of decarbonization, and Ameresco is one of the few public companies with a high degree of leverage to improve the efficiency of buildings.

Shares outperformed during the quarter after the company reported better than expected second quarter earnings which beat analysts’ estimates. Notably, year-over-year revenue growth was up 111%, driven by the second full quarter of revenue recognition from the contract to build battery systems for Southern California Edison. Moreover, we believe the clean energy company is a key beneficiary of the Inflation Reduction Act, passed into law on August 16th, which provides funding for clean energy production.”

4. Canadian Solar Inc. (NASDAQ:CSIQ)

Average analyst price target: $39.43

Average analyst price target upside as of November 6: 82.88%

Canadian Solar Inc. (NASDAQ:CSIQ) is a well-known solar energy solutions company that has more than 23 manufacturing facilities in Asia and the Americas.

On October 30, Canadian Solar Inc. (NASDAQ:CSIQ) announced that it will be taking another step to expand its footprint in the U.S. by constructing a solar photovoltaic cell production facility at the River Ridge Commerce Center in Jeffersonville, Indiana. At the $800 million facility, the company will make PV cells with an annual output of 5 GW.

In Q2, Canadian Solar Inc. (NASDAQ:CSIQ)’s stock was owned by 16 hedge funds, down from 17 in the previous quarter. However, the combined hedge fund investments increased to $205.689 million in Q2 from $173.964 million in the previous quarter. Citadel Investment Group was the biggest shareholder of the company as it increased its stake significantly by 66% to 1.46 million shares worth $56.56 million.

On October 26, Canadian Solar Inc. (NASDAQ:CSIQ)’s subsidiary, e-STORAGE, further solidified its position as one of the top players in the energy storage integration market system market globally. e-STORAGE was given a supply and integration contract for its iconic 1 GWh DC of energy storage solutions. DEPCOM Power, Inc. will utilize the energy system for its Roadrunner Reserve System project, which will be run by Tucson Electric Power (TEP).

3. Sunnova Energy International Inc. (NYSE:NOVA)

Average analyst price target: $19.45

Average analyst price target upside as of November 6: 95.87%

Sunnova Energy International Inc. (NYSE:NOVA) is a Texas-based solar energy company that serves residential and commercial customers. 

On October 31, Wells Fargo analyst Michael Blum International Inc. decreased Sunnova Energy (NYSE:NOVA)’s price target to $16 from $22 and maintained an Overweight rating. The firm mentioned that despite the company’s Q3 earnings miss, the management reaffirmed its 2023 guidance and provided a strong 2024 outlook.

According to TipRanks, 20 analysts covered Sunnova Energy International Inc. (NYSE:NOVA) stock over the last three months. 15 out of the 20 analysts keep a Buy rating on Sunnova Energy International Inc. (NYSE:NOVA) stock with an average price target of $19.45.

2. Sunrun Inc. (NASDAQ:RUN)

Average analyst price target: $21.21

Average analyst price target upside as of November 6: 106.12%

Sunrun Inc. (NASDAQ:RUN) is a California-based company that offers solar storage and related services to residential customers.

On November 1, Sunrun Inc. (NASDAQ:RUN) posted its Q3 non-GAAP EPS of $0.40, surpassing the estimates by $0.56, and the revenue reported by the company was $563.18 million. In Q3, the company reported 33,806 in customer additions and $1.2 billion in annual recurring revenue from subscribers.

Out of the 910 elite hedge funds tracked by Insider Monkey, 24 had a stake in Sunrun Inc. (NASDAQ:RUN) in the second quarter. William B. Gray’s Orbis Investment Management increased its stake in the company by 7% and was the most significant shareholder of the company, with 13.997 million shares worth $249.991 million. 

On November 3, it was announced that Sunrun Inc. (NASDAQ:RUN) was among the companies that the U.S. Energy Department is considering for an award of up to $440 million for rooftop solar and battery storage systems which will be sent to Puerto Rico. The award will be the first part of a $1 billion fund that comes under legislation President Joe Biden signed in 2022 that is aimed at increasing Puerto Rico’s energy resilience.

1. Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN)

Average analyst price target: $18

Average analyst price target upside as of November 6: 201.51%

Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) is a Singapore-based company that manufactures and sells solar panels and related components.

Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN)’s stock was owned by 20 hedge funds in the second quarter of 2023, the same as the previous quarter. However, hedge funds increased their investments in the company by a significant margin in Q2. The company’s biggest stakeholder, LMR Partners, increased its stake in the company by 1065%. Furthermore, D E Shaw and Marshall Wace LLP increased their holdings by 1801% and 890%, respectively. The total hedge fund investments in Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) increased to $281.020 million in Q2 from $120.622 million in Q1.

With an average analyst price target upside of over 200%, Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) tops our list of cheap solar stocks to buy according to analysts.

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