7 Most Undervalued Solar Stocks to Buy According to Analysts

3. Emeren Group (NYSE:SOL)  

Upside Potential as of October 4: 44.35%  

Number of Hedge Fund Investors: 6  

Forward P/E Ratio as of October 4: 8.37  

Emeren (NYSE:SOL) is a clean energy company that specializes in developing solar power and solar storage projects. As an Independent Power Producer (IPP), the company has a diversified portfolio of 245MW of photovoltaic (PV) systems and 15MWh of storage systems.

Emeren (NYSE:SOL) has strategically shifted its focus to the European market, where competition is less intense compared to the United States, particularly in the construction of storage systems. The European market, particularly in countries such as Italy, Poland, Spain, France, Germany, and the UK, offers significant opportunities for growth, and the company has an extensive pipeline of solar and storage projects in Europe, which constitutes the majority of its order backlog. This strategic move is expected to drive the company’s growth and expansion in the region.

Emeren (NYSE:SOL) has been expanding its Engineering, Procurement, and Construction (EPC) services, which account for around 50% of the company’s revenues. The demand for EPC services in the photovoltaic sector has been growing, and the company continues to capitalize on this trend, particularly in Europe. This strategic focus on EPC services is expected to contribute to the company’s revenue growth.

Despite facing challenges related to project delays, Emeren (NYSE:SOL) is well-positioned for growth. The stock’s forward PE of 8.37 represents a 58% discount to its sector to the sector median of 20.09. Analysts expect the company to achieve 100% earnings growth this year and are bullish on the company’s stock price with a consensus Buy rating.