5 Most Promising Clean Energy Stocks According to Analysts

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders:  91

One-Year Average Price Estimate: $196

With a dominant position in the EV industry, solar and other clean energy solutions for home consumers, Tesla, Inc. (NASDAQ:TSLA) is one of the best clean energy stocks to buy. Tesla, Inc. (NASDAQ:TSLA)’s one-year average price target is $196, according to Yahoo Finance. But according to CNN Business, the average price target for Tesla, Inc. (NASDAQ:TSLA) based on estimates of 36 analysts is $210. Cathie Wood, who has a $570 million stake in Tesla, Inc. (NASDAQ:TSLA), believes Tesla stock could reach $500 by 2026.

As of the end of the fourth quarter of 2022, 91 hedge funds out of the 943 funds tracked by Insider Monkey reported owning stakes in Tesla, Inc. (NASDAQ:TSLA), up from 88 hedge funds in the previous quarter.

ClearBridge Large Cap Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA), meanwhile, also fits squarely within our earnings reset group. We took advantage of its enterprise multiple falling back to historic lows to initiate a starter position in the leading manufacturer of electric vehicles (EV) and developer of battery technologies. Tesla has a significant structural cost advantage in battery production, EV manufacturing and EV selling, which gives it industry-leading operating margins in EVs. As the auto cycle has softened, the stock has sold off substantially with the rest of the automakers, despite EVs continuing to have a secular growth advantage. Tesla has a clean balance sheet with negative net debt and enormous revenue growth, EBITDA growth and free cash flow generation. Its margin buffer also gives the company the ability to cut prices while still protecting earnings better than competitors, which should help support continued volume growth. There is also significant upside optionality driven by its software offerings, which we do not believe is currently priced into the stock.

That being said, Tesla is highly indexed to a flagging auto market and we expect its earnings outlook to worsen in the near term. We are also monitoring increasing EV competition and the recently emerging risks to the brand and management integrity raised by CEO Elon Musk’s actions at Twitter to determine future position size in the portfolio.”

You can also take a peek at 15 Most Promising Dividend Stocks According to Analysts and 15 Most Promising Long-Term Stocks.