7 Most Undervalued Solar Stocks to Buy According to Analysts

5. Canadian Solar (NASDAQ:CSIQ)  

Upside Potential as of October 4: 29.26%  

Number of Hedge Fund Investors: 10  

Forward P/E Ratio as of October 4: 21.40

Canadian Solar (NASDAQ:CSIQ) is a leading global solar technology and renewable energy company. The company designs, manufactures, and sells solar photovoltaic modules and offers solar energy and battery storage solutions. Canadian Solar (NASDAQ:CSIQ) operates two primary business segments: CSI Solar, focused on manufacturing solar products, and Recurrent Energy, a developer of solar and storage solutions. Canadian Solar (NASDAQ:CSIQ) has a strong presence in North America, Europe, and Asia.

The global battery energy storage market is expected to experience significant growth, with a projected value of $25.6 billion by 2029, up from $7.8 billion in 2024, at a CAGR of 26.9%, according to a report by Markets and Markets. Canadian Solar (NASDAQ:CSIQ) has made significant advancements in the energy storage sector, offering integrated storage solutions that combine its solar modules with battery storage technologies, enabling more efficient energy use.

Canadian Solar’s (NASDAQ:CSIQ) energy storage segment has seen impressive growth, driven by rising demand for energy storage solutions worldwide. The company’s energy storage business has developed a strong pipeline of projects globally, with several key installations already operational and more in the pipeline. As of Q2, Canadian Solar (NASDAQ:CSIQ) has a contracted pipeline of over 31 GWh for storage projects.

Canadian Solar (NASDAQ:CSIQ) is trading at a 9.66% discount to its sector median of 23.68, with a forward P/E multiple of 21.40. The company’s stock is owned by 10 hedge funds, with a total value of $48.12 million as of the second quarter. Industry analysts have reached a consensus on the stock’s Buy rating, with an average target price of $20.33 that suggests an almost 30% upside potential from its current levels.