7 Most Undervalued Solar Stocks to Buy According to Analysts

2. Nextracker (NASDAQ:NXT)  

Upside Potential as of October 4: 47.91%  

Number of Hedge Fund Investors: 39  

Forward P/E Ratio as of October 4: 11.66  

Nextracker (NASDAQ:NXT) is a prominent player in the solar tracking solutions market, serving both utility-scale and distributed generation projects. Since its IPO in 2023, the company has delivered impressive double-digit returns, driven by its market dominance and the rapid growth of the solar energy industry.

Recently, Nextracker (NASDAQ:NXT) secured a significant contract with ACWA Power and Larsen & Toubro to provide its NX Horizon-XTR all-terrain tracker for the 1.17 GW Al Kahfah solar power project in Saudi Arabia. Nextracker (NASDAQ:NXT) will supply its advanced tracker systems, which are designed to maximize energy output by tracking the sun’s movement. Nextracker (NASDAQ:NXT) is also collaborating with local partners in Saudi Arabia to provide raw materials and manufacturing support for the trackers. This substantial 1.17 GW order brings Nextracker’s (NASDAQ:NXT) total capacity of smart solar trackers in the Middle East, India, and Africa region to over 10 GW.

Nextracker (NASDAQ:NXT) is well-positioned to capitalize on the growing demand for solar tracking solutions. A report by Precedence Research estimates that the global solar tracker market will expand from $7.01 billion in 2024 to $71.81 billion by 2034 at a CAGR of 26.2%.

With a forward price-to-earnings ratio of 11.66, the company’s stock trades at a 41.97% discount compared to the sector average.