7 Most Undervalued Renewable Energy Stocks To Buy Now

5. Shoals Technologies (NASDAQ:SHLS)  

Number of Hedge Fund Investors: 33  

Forward P/E Ratio as of October 6: 13.90  

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

Shoals Technologies’ (NASDAQ:SHLS) groundbreaking Big Lead Assembly (BLA) System has revolutionized solar installation technology. By integrating multiple components into a single unit, the BLA System reduces installation costs by 43% and material costs by 20%. This innovative solution not only enhances efficiency but also improves safety, setting a new benchmark for EBOS solutions.

Shoals Technologies (NASDAQ:SHLS) has developed a range of innovative solutions to streamline solar and electric vehicle (EV) installations. The company’s Interconnect System simplifies the connection of solar panels to the grid, minimizing the need for specialized labor and enhancing overall efficiency. Additionally, Shoals Technologies’ 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) is currently trading at an attractive price-to-earnings (P/E) ratio of 13.90, representing a 31.19% discount compared to the sector median of 20.21. With a consensus Buy rating from industry analysts, the stock has a target price of $8.84, which represents a 53.11% upside potential from its current level. As of the second quarter, 33 hedge funds hold a stake in the company, with a combined value of $208.17 million.