Jim Cramer’s Take on These 10 Stocks

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

Number of Hedge Fund Holders: 39

A caller asked if they should hold onto Enphase Energy, Inc. (NASDAQ:ENPH) and wait for any good news or sell it and buy Capital One. In response, Cramer said:

“No. Sell out and buy Capital One. There will be no good news in Enphase because you know why? It’s not a company that the president wants to see do well. It means nothing to him, nothing.”

Enphase Energy (NASDAQ:ENPH) focuses on the solar photovoltaic industry. It designs, develops, produces, and sells energy solutions. In February, Cramer commented:

“The residential solar stocks soared in 2020 and 2021 and kept running into 2022 even when most growth plays were getting pulverized. If you owned it, maybe you thought you were winning because people were embracing renewable energy and the government was subsidizing it heavily. But in 2023, the residential solar stocks, they, they got obliterated. Why?

Do you know that it had nothing to do with the popularity of renewable energy and it couldn’t be stopped by generous federal subsidies? Instead, it turned out that people can’t really afford residential solar systems without borrowing money. Meaning the whole industry was actually built not on solar but on financing. And once people realized long-term interest rates would remain elevated for quite some time, the residential solar stocks, they all got crushed. It’s not a coincidence, something like Enphase was roaring in 2020 and 2021 when people could borrow money for next to nothing.”