8 Best Stocks to Buy for High Returns in 2024

3. First Solar, Inc. (NASDAQ:FSLR)

Average Analyst Upside: 44.04%

Number of Hedge Fund Holders: 66

First Solar, Inc. (NASDAQ:FSLR), a leading U.S. solar company, supplies thin-film photovoltaic (PV) solar panels for large-scale power plants and has a robust backlog of 75.9 GW in bookings, stretching through 2030 and signaling long-term growth.

In Q2, First Solar, Inc. (NASDAQ:FSLR) reported a 24.7% revenue increase to $1.01 billion, with EBITDA surging 95% year-over-year to $470 million due to higher selling prices and improved gross margins, which reached an impressive 49.4%. The company is also patenting its TOPCon technology to boost solar panel efficiency, with expected royalty income providing an additional revenue stream. Projected earnings growth for 2024 is nearly 54.7%.

Roth/MKM maintained a Buy rating on First Solar, Inc. (NASDAQ:FSLR) in mid-October, but adjusted the price target from $320 to $280, citing near-term headwinds. The firm’s concerns include a slower bookings pace heading into Q3, the upcoming election’s uncertainty, risks of project delays, and potential volume and pricing challenges in India. Despite these obstacles, the Roth/MKM highlighted medium-term policy tailwinds favoring First Solar, Inc. (NASDAQ:FSLR), such as domestic content mandates, antidumping, and countervailing duties (AD/CVD) in solar energy.

As of Q2, hedge funds held $1.68 billion in the FSLR stock, with Citadel Investment Group as the largest shareholder, holding shares valued at $766.56 million.