In this article, we will take a look at the 5 most promising solar stocks according to analysts. To see more such companies, go directly to 12 Most Promising Solar Stocks According to Analysts.
5. Daqo New Energy Corp. (NYSE:DQ)
Average Analyst Price Target: $63
Daqo New Energy Corp. (NYSE:DQ) is a Chinese solar energy company in our list of the most promising solar stocks according to hedge funds. Daqo New Energy Corp. (NYSE:DQ) makes monocrystalline silicon and polysilicon, which are used in solar photovoltaic systems. Over the past one year Daqo New Energy Corp. (NYSE:DQ) has gained about 11% through February 13.
In December, Daqo New Energy Corp. (NYSE:DQ) announced that its Phase 5B polysilicon expansion project in Inner Mongolia is estimated to boost the firm’s annual polysilicon production capacity by 100,000 metric tons to 305,000 tons by year-end 2023.
In November, Daqo New Energy Corp. (NYSE:DQ) said its board authorized a $700 million share repurchase program, effective from November 7, 2022 to December 31, 2023.
4. Ameresco, Inc. (NYSE:AMRC)
Average Analyst Price Target: $71.5
Ameresco, Inc. (NYSE:AMRC) is a green energy company based in Massachusetts. Ameresco, Inc. (NYSE:AMRC) ranks 4th in our list of the most promising solar stocks according to analyst as its average price target stands at $71.5 according to WSJ data.
Alger Capital made the following comment about Ameresco, Inc. (NYSE:AMRC) in its Q3 2022 investor letter:
“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.”
3. First Solar, Inc. (NASDAQ:FSLR)
Average Analyst Price Target: $183
Solar panels maker First Solar, Inc. (NASDAQ:FSLR) has been a remarkable performer over the past 12 months, gaining about 144% during the period through February 13. Analysts believes First Solar, Inc. (NASDAQ:FSLR) has further growth upside. According to Wall Street data, the average analyst price target for First Solar, Inc. (NASDAQ:FSLR) is $183. Of the 920 hedge funds tracked by Insider Monkey, 45 hedge funds had stakes in First Solar, Inc. (NASDAQ:FSLR), up from 26 hedge funds in the previous quarter. This shows that hedge funds piled into First Solar, Inc. (NASDAQ:FSLR) during the third quarter of the year as the stock market was going through turmoil.
In January, Wells Fargo upgraded the stock to Overweight from Equal Eight and gave a price target of $188. Wells Fargo called First Solar, Inc. (NASDAQ:FSLR) one of its “best ideas” for 2023.
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Average Analyst Price Target: $296
Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most popular green energy stocks among analysts and hedge funds alike. As of the end of the third quarter of 2022, 59 hedge funds tracked by Insider Monkey had reported owning stakes in Enphase Energy, Inc. (NASDAQ:ENPH), up from 53 hedge funds in the previous quarter. According to Wall Street Journal data, Enphase Energy, Inc. (NASDAQ:ENPH)’s average price target is $296.
1. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Average Analyst Price Target: $362
SolarEdge Technologies, Inc. (NASDAQ:SEDG) ranks first in our list of the most promising solar stocks to buy according to analysts. According to Wall Street Journal, SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s price target based on average analyst ratings is $362, as of February 13. In December, SolarEdge Technologies, Inc. (NASDAQ:SEDG) gained after Barclays upgraded the stock to Overweight from Equal Weight. Barclays’ analysts said SolarEdge Technologies, Inc. (NASDAQ:SEDG) has strong growth potential in Europe.
As of the end of the third quarter of 2022, 44 hedge funds among the 920 funds tracked by Insider Monkey reported owning stakes in SolarEdge Technologies, Inc. (NASDAQ:SEDG). The net worth of these stakes was about $674 million.
You can also take a peek at 15 Largest Australian Companies by Revenue and 12 Cash Rich Dividend Stocks To Buy.
