7 Most Undervalued Renewable Energy Stocks To Buy Now

1. First Solar (NASDAQ:FSLR)  

Number of Hedge Fund Investors: 66  

Forward P/E Ratio as of October 6: 17.12  

First Solar (NASDAQ:FSLR), a leading manufacturer of thin-film photovoltaic (PV) solar panels, has established a global presence with operations in Vietnam and Malaysia, catering to large-scale solar power projects.

The company’s Q2 financials were impressive, with revenue surging 24.7% to $1.01 billion and EBITDA soaring 95% year-over-year to $470 million, driven by higher selling prices and a gross margin of 49.4%. A robust order backlog extending through 2030, fueled by strong demand for its products, further solidifies its market position.

First Solar (NASDAQ:FSLR) is in the process of patenting its innovative TOPCon technology, which is expected to enhance the efficiency of its solar panels. If successful, the patent could unlock a new revenue stream through royalties, bolstering the company’s financials and providing a potential long-term growth driver. Additionally, the company has completed an upgrade at its Ohio facility and is expanding its US production capacity with new sites in Louisiana and Alabama, poised to meet the growing demand for solar energy.

First Solar (NASDAQ:FSLR) is currently undervalued, with a price-to-earnings ratio of 17.12, representing a 28.93% discount to the sector median of 24.09. Analysts expect the company to achieve 54.78% earnings growth in this year and are bullish on the stock. The stock has a consensus Buy rating and an average price target of $293.73, which implies a 23.85% increase from its current levels. 66 hedge funds own stakes in the company worth $1.68 billion.

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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