7 Best Battery Stocks to Buy According to Analysts

5. Sunrun Inc. (NASDAQ:RUN)

Upside Potential: 19.34%

Sunrun Inc. (NASDAQ:RUN) designs, installs, and maintains residential solar energy systems across the United States. The company offers solar panels, battery storage, and related products. It also provides energy solutions for new homes.

Sunrun Inc. (NASDAQ:RUN) demonstrated robust financial performance in Q2 2024. This was primarily driven by the company’s continuous focus on cash generation and its strategic expansion into clean energy solutions. As such, in the quarter, the company reported $217 million in cash, making a significant improvement from the prior quarter. Following this growth and confidence in its operational efficiencies, Sunrun raised cash generation guidance to between $350 million and $600 million for 2025.

The company’s total installed energy capacity reached 192 megawatts during the second quarter. This was mainly attributable to a more selective approach, with a greater focus on high-margin customers amid rising consumer demand. Moreover, it installed 265 megawatts of storage in the second quarter, the highest in the company’s history. Therefore, the battery storage segment of Sunrun Inc. (NASDAQ:RUN) performed exceptionally well during the quarter. Storage attachment rates reached 54% in the quarter, up from 18% in the same period last year. This rapid growth is boosted by the company’s “storage-first” model, with the aim of enhancing customer value and improving margins.

Sunrun now operates 116,000 storage systems in the United States, with a total network capacity of 1.8 gigawatt-hours. This is also the backbone of the company’s virtual power plant (VPP) initiatives. An example of such success is the partnership with Tesla in Texas where customers are compensated for dispatching solar power from their homes.

However, the company anticipates that solar installation volumes will fall to the lower end of its guidance for 2024. Installations are projected to grow by 4%, with a 2% drop in the utility-scale segment and a 19% decline in the residential sector.

Despite the challenges, Sunrun Inc. (NASDAQ:RUN) recently became the first company to register 1 million residential solar customers. The stock has surged 100% in the last 6 months, driven by continued success and growth.

As such, 35 hedge funds have collectively invested $694 million in the company (as of Q2 2024) as per Insider Monkey’s database. Therefore, analysts predict an upside of 19.34% in the share price.