8 Best Wind Power and Solar Stocks to Buy

4. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Investors: 42

Stock Upside Potential: 5.8%

Enphase Energy, Inc. (NASDAQ:ENPH) is one of the best wind power and solar stocks to buy, as it offers exposure to the design, manufacturing, and sale of microinverter systems for the solar industry. It is these devices that the solar industry relies on to convert direct power produced by solar panels into alternating current for use in household and industrial settings.

While Enphase Energy, Inc. (NASDAQ:ENPH) is best known for its microinverters, it is also expanding its footprint into other growth areas. Its long-term plan is to serve the entire home energy system market through IQ8 series microinverters and IQ batteries to serve the entire home energy system. It’s also developing electric vehicle charge systems to tap the opportunity around electric vehicles.

Enphase Energy, Inc. (NASDAQ:ENPH)’s competitive edge stems from being one of the largest solar companies by market value, which allows it to enjoy economies of scale. While the company did feel the full effects of rising interest rates that dampened demand for residential solar, it is benefiting from a strong recovery in US demand.

Its revenue in the second quarter of 2024 totaled $303.5 million compared to $263.3 million delivered in the first quarter. The increase was driven by 11% increases in the United States amid strong demand for the company’s products.

Analysts on Wall Street rate the stock as a Buy with an average price target of $123.77, implying a 5.80% upside potential. Additionally, a total of 42 out of 912 hedge funds tracked by Insider Monkey held stakes in the company as of the end of the second quarter.