7 Cheap Solar Stocks To Buy According To Hedge Funds

3. Nextracker (NASDAQ:NXT)

Number of Hedge Fund Investors: 39

Forward P/E Ratio as of September 22: 11.84

Nextracker (NASDAQ:NXT) is a leading provider of solar tracking solutions, catering to both utility-scale and distributed generation projects. Since its successful initial public offering in 2023, the company has delivered impressive double-digit returns, driven by its dominant market position and the robust growth of the solar energy industry.

In February, Nextracker (NASDAQ:NXT) was selected by ACWA Power and Larsen & Toubro to provide its all-terrain tracker NX Horizon-XTR for the 1.17 GW Al Kahfah solar power project in Saudi Arabia. The company will supply its NX Horizon-XTR tracker systems, which are designed to optimize energy output by following the sun’s movement to maximize energy production. Nextracker (NASDAQ:NXT) will also support the project with local partners in Saudi Arabia by providing raw materials and manufacturing support for the trackers. This 1.17 GW order brings Nextracker’s (NASDAQ:NXT) total capacity of smart solar trackers in the Middle East, India, and Africa region to over 10 GW, including both operational and currently under-development projects.

Nextracker (NASDAQ:NXT) is well-positioned to capitalize on the increasing demand for solar tracking solutions. According to a report by Precedence Research, the global solar tracker market is valued at $7.01 billion in 2024 and is expected to reach around $71.81 billion by 2034, expanding at a CAGR of 26.2%. The company’s stock trades at a forward price-to-earnings ratio of 11.84, representing a 40.73% discount compared to the sector median of 19.98.

Moreover, analysts have a consensus on the stock’s Buy rating, setting an average share price target at $59.44, representing a 47% upside potential from its current level. As of the second quarter, the stock is held by 39 hedge funds worth $672.68 million.