5 Most Undervalued Solar Stocks to Buy According to Hedge Funds

1. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 59

Enphase Energy, Inc. (NASDAQ:ENPH) makes it to our list of the most undervalued solar stocks to buy according to hedge funds because Enphase Energy, Inc. (NASDAQ:ENPH) has lost about 26% over the past six months and the shares seem to have long-term growth catalysts, according to several analyst. Hedge funds also piling into this solar stock. Of the 920 hedge funds tracked by Insider Monkey, 59 hedge funds had stakes in Enphase Energy, Inc. (NASDAQ:ENPH) as of the end of the third quarter of 2022, up from 53 funds in the previous quarter. The total worth of these shares was about $2.2 billion. According to Yahoo Finance, Enphase Energy, Inc. (NASDAQ:ENPH) stock has a forward PE ratio of 43, compared to renewable industry’s PE ratio of 83.

In October, Enphase Energy, Inc. (NASDAQ:ENPH) shares rallied after the company posted strong Q3 results and gave bullish guidance. Enphase Energy, Inc. (NASDAQ:ENPH) said it plans to open 4-6 manufacturing lines in the US because of the Inflation Reduction Act.

ClearBridge Investments made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:

“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”

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