5 Most Undervalued Solar Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 50

P/E Ratio as of November 2: 19.50

Enphase Energy, Inc. (NASDAQ:ENPH) creates, manufactures, and sells home energy solutions for the solar industry in the United States and internationally. The company provides semiconductor-based microinverters that operate at the individual solar module level, along with proprietary networking and software for energy monitoring and control. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most undervalued solar stocks to monitor. On October 26, the company reported a Q3 non-GAAP EPS of $1.02, beating market estimates by $0.02. The revenue of $551.08 million, however, fell Street forecasts by $15.72 million. 

According to Insider Monkey’s second quarter database, 50 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), compared to 55 funds in the last quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 612,351 shares worth $102.5 million. 

ClearBridge SMID Cap Growth Strategy made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q2 2023 investor letter:

“We exited our position in Enphase Energy, Inc. (NASDAQ:ENPH), in the IT sector, which designs, manufactures and sells semiconductor equipment for the residential solar photovoltaic industry. New regulations within California, as well as improving supply chain dynamics in Europe, have placed additional pressure on the company. Facing concerns surrounding weaker U.S. residential demand, decelerating revenue growth trends and falling prices compressing margins, we elected to sell the position and redeploy our assets to other, higher-conviction holdings.”