8 Best Wind Power and Solar Stocks to Buy

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

Number of Hedge Fund Investors: 66

Stock Upside Potential: 30.26%

First Solar, Inc. (NASDAQ:FSLR) is one of the largest solar companies in the world, specializing in providing photovoltaic solar energy solutions. It manufactures and sells PV solar modules using thin semiconductor technology. It stands out as one of the best wind power and solar stocks to buy owing to its deep relations and long reach with investors in the clean energy sector.

First Solar, Inc. (NASDAQ:FSLR) was one of the few solar energy stocks that did not crash last year amid rising interest rates and changes in solar policy. Its resilience in the market underscores why it is one of the most sought-after stocks in the clean energy space.

Its resilience stems from its unique technology and utility-scale market. First Solar, Inc. (NASDAQ:FSLR)’s thin-film solar panels have cost and efficiency advantages over many competitors. The superior technology is the catalyst behind strong demand for the company’s solar panels, and the company is well poised to sell 11.8 gigawatts to 12.3 gigawatts of solar panels this year.

The company delivered solid second-quarter financial results whereby earnings came in at $3.25 a share, beating consensus estimates of $2.69 a share. Revenues totaled $1.01 billion, up 24% year over year, above estimates of $941.5 million.

While there have been concerns that First Solar, Inc. (NASDAQ:FSLR) would be one of the companies hard hit with Donald Trump winning the upcoming presidential elections, Morgan Stanley analyst Andrew Percoco believes the risk of the IRA act being repealed is overblown.

“In a scenario where Trump wins the 2024 election, we would expect FSLR to benefit from greater pricing, enabled by additional tariffs on solar equipment imported into the US, or even the perceived risk of incremental tariffs under a potential Trump administration,” Percoco said

First Solar, Inc. (NASDAQ:FSLR) commands an average Buy rating on Wall Street with an average price target of $290, implying a 30.26% upside potential. Additionally, 66 hedge funds out of 912 tracked by Insider Monkey held stakes in the company as of the end of Q2 2024.