7 Cheap Solar Stocks To Buy According To Hedge Funds

5. Array Technologies (NASDAQ:ARRY)

Number of Hedge Fund Investors: 30

Forward P/E Ratio as of September 22: 9.63

Array Technologies (NASDAQ:ARRY) is a manufacturer and supplier of single-axis trackers for solar panels. These trackers enable solar panels to track the sun’s movement throughout the day and help optimize energy production and efficiency by maximizing exposure to sunlight.

In Q1, Array Technologies (NASDAQ:ARRY) launched the innovative Hail Alert Response system, which is designed to enhance the resilience and durability of solar trackers by leveraging advanced weather prediction algorithms. The system automatically stows solar trackers approximately 30 minutes before a predicted hail event, minimizing potential damage and downtime and is compatible with the company’s existing product portfolio. The Hail Alert Response system requires a SmarTrack Controller to function, which provides an integrated and proactive approach to protecting solar assets from severe weather conditions.

In February, Array Technologies (NASDAQ:ARRY) announced a strategic partnership with Alpuco in Saudi Arabia aimed at sourcing materials locally. This collaboration enables the company to capitalize on domestic incentives and solidifies its presence in the Middle Eastern market. The region is poised for significant growth, with an expected addition of nearly 70 GW of photovoltaic capacity by 2030. Saudi Arabia, in particular, has set an ambitious target of 130 GW of renewable energy by 2030. This partnership has the potential to significantly drive Array Technologies’ market expansion and bolster its order book.

Array Technologies (NASDAQ:ARRY) trades 9.63 times its earnings, representing a 48.70% discount to the sector median of 18.77. As of the second quarter, 30 hedge funds held a stake in the company, with a combined value of $396.77 million. Hill City Capital is the largest shareholder in the company and owns stocks worth $136.61 million as of June 30.

Additionally, analysts have a consensus Buy rating on the stock, with an average price target of $13.73, indicating a potential upside of 72.7% from current levels.