7 Cheap Solar Stocks To Buy According To Hedge Funds

1. First Solar (NASDAQ:FSLR)

Number of Hedge Fund Investors: 66

Forward P/E Ratio as of September 22: 17.79

First Solar (NASDAQ:FSLR) focuses on manufacturing thin-film photovoltaic (PV) solar panels for large-scale solar power projects. The company has a global presence and operates facilities in Vietnam and Malaysia.

In Q2, First Solar’s (NASDAQ:FSLR) revenue rose by 24.7% to $1.01 billion, with EBITDA skyrocketing 95% year-over-year to $470 million due to increased selling prices and enhanced gross margin of 49.4%. The company boasts a robust order backlog extending through 2030, driven by strong product demand.

First Solar (NASDAQ:FSLR) is currently in the patent application process for its innovative TOPCon technology, which is anticipated to improve the efficiency of its solar panels. If successful, the patent could unlock a new revenue stream through royalties, further strengthening the company’s financial standing and providing a potential long-term growth catalyst. First Solar (NASDAQ:FSLR) has recently completed an upgrade at its Ohio facility and is building new sites in Louisiana and Alabama, which are expected to nearly double its US production capacity, enabling it to meet the surging demand for solar energy better.

First Solar (NASDAQ:FSLR) is currently trading at a relatively attractive valuation, with a price-to-earnings ratio of 17.79, representing a 9.18% discount to the sector median of 23.61. Analysts forecast the company to grow its earnings by 54.85% this year. As of the second quarter, 66 hedge funds own stakes in the company valued at $1.68 billion. Samlyn Capital is the largest shareholder, with stakes worth $240.78 million.

While we acknowledge the potential of First Solar (NASDAQ:FSLR) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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