Louis Navellier’s 2023 Portfolio: 5 Growth Stocks to Watch

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

Stake Value of Navellier & Associates: $4,867,351

Number of Hedge Fund Holders: 55

Enphase Energy, Inc. (NASDAQ:ENPH) provides home energy solutions for the solar photovoltaic industry. They specialize in designing, developing, manufacturing, and selling these solutions in the United States and globally. During the first quarter of 2023, Louis Navellier raised his stake in Enphase Energy, Inc. (NASDAQ:ENPH) by 4%, holding 23,147 shares worth $4.86 million, representing 1.02% of the total securities. 

On April 28, Wells Fargo analyst Praneeth Satish maintained an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) but lowered the firm’s price target on the shares to $230 from $281. Enphase Energy, Inc. (NASDAQ:ENPH) reported a “solid” Q1, but provided “weak” guidance for Q2, the analyst told investors in a research note. The outlook for growth over the next quarters is uncertain, but the price weakness seems overly correctional, the firm said.

According to Insider Monkey’s first quarter database, 55 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), compared to 63 funds in the prior quarter. Philippe Laffont’s Coatue Management is a significant stakeholder of the company, with 714,442 shares worth $150.2 million.

Aristotle Atlantic Large Cap Growth Strategy made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q1 2023 investor letter:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”