7 Most Undervalued Solar Stocks to Buy According to Analysts

4. Shoals Technologies (NASDAQ:SHLS)  

Upside Potential as of October 4: 31.33%  

Number of Hedge Fund Investors: 33  

Forward P/E Ratio as of October 4: 13.80  

Shoals Technologies (NASDAQ:SHLS) is a leading player in the solar energy and electric vehicle solutions space. The company has a proven track record of deploying its products in over 62 GW of solar systems worldwide. Shoals Technologies (NASDAQ:SHLS) boasts an impressive intellectual property portfolio, with over 66 patents that underscore its commitment to innovation.

Shoals Technologies’ (NASDAQ:SHLS) innovative Big Lead Assembly (BLA) System is a game-changer in solar installation technology, and helps integrate multiple components into a single, streamlined unit. This design reduces installation costs by 43% and material costs by 20%, while also enhancing efficiency and safety. The BLA System has set a new standard for electrical balance of systems (EBOS) solutions.

The company has developed a range of innovative solutions to simplify solar and electric vehicle (EV) installations. Its Interconnect System streamlines the connection of solar panels to the grid and reduces the need for specialized labor while enhancing overall efficiency and reliability. Additionally, Shoals Technologies’ (NASDAQ:SHLS) 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 trading at an attractive price-to-earnings (P/E) ratio of 13.80, representing a 31.33% discount compared to the sector median of 20.09. As of the second quarter, 33 hedge funds hold a stake in the company, with a combined value of $208.17 million.