7 Cheap Solar Stocks To Buy According To Hedge Funds

4. Shoals Technologies (NASDAQ:SHLS)

Number of Hedge Fund Investors: 33

Forward P/E Ratio as of September 22: 16.94

Shoals Technologies (NASDAQ:SHLS) focuses on solar energy and electric vehicle solutions. The company has successfully deployed its products in more than 62 GW solar systems worldwide and has an impressive intellectual property portfolio with over 66 patents. Shoals Technologies (NASDAQ:SHLS) is particularly known for its innovative electrical balance of systems (EBOS) solutions, which have set a new standard in the industry.

Shoals Technologies’ (NASDAQ:SHLS) innovative Big Lead Assembly (BLA) System represents a significant advancement in solar installation technology. It integrates multiple components into a single, streamlined unit. By minimizing the need for combiner boxes and wiring, the BLA System offers a 43% reduction in installation costs and a 20% reduction in material costs. This innovative solution not only enhances efficiency but also improves safety, setting a new benchmark for electrical balance of systems (EBOS) solutions.

Shoals Technologies (NASDAQ:SHLS) has developed various innovative solutions to streamline solar and electric vehicle (EV) installations. The company’s Interconnect System is designed to simplify the connection of solar panels to the grid, minimizing the need for specialized labor and enhancing overall efficiency and reliability. Additionally, Shoals Technologies’ (NASDAQ:SHLS) patented connectors and wire harnesses with in-line fuses offer a cost-effective solution for solar installations, reducing production and transportation costs.

Shoals Technologies (NASDAQ:SHLS) trades at a price-to-earnings (P/E) ratio of 16.94, a 15.19% discount compared to the sector median of 19.98. As of the second quarter, a total of 33 hedge funds hold a stake in the company, with a combined value of $208.17 million. Joho Capital is the largest shareholder and holds stocks worth $60.16 million as of June 30..