In this article, we explore the 10 Best Energy Storage Stocks to Buy According to Hedge Funds.
The events in the Middle East are ushering a generational growth phase into the global energy storage market. According to Kevin Zhang, a battery storage industry analyst and founder of Energy Storage AC Club, the recent geopolitical conflict, which led to the closure of the Strait of Hormuz shipping route, is a trigger for a “$150B Storage Supercycle.” Zhang argued that battery energy storage systems (BESS) have “graduated from ‘nice-to-have’ to strategic national infrastructure” and is now the “ultimate energy insurance” for governments, corporations, and investors.
This was also the key takeaway from Fitch Ratings’ analysis of the US-led hostilities in Iran. The Iran conflict is shifting battery-sector upside away from passenger EVs and toward BESS, plus broader electrification uses, noted Fitch. Why Fitch sees the conflict’s repercussions that way is because oil and LNG supply shocks make energy security more urgent for many countries. The firm added that the strongest incremental demand driver for BESS is likely to be overseas investment in “solar plus battery storage,” especially in energy-importing emerging markets with less reliable power systems.
“Demand for BESS should rise even if the Iran conflict is resolved shortly, as the related gas disruptions make electricity supply more expensive and less stable in markets reliant on gas-fired generation, and energy security becomes a more immediate policy priority,” Fitch stated.
However, even before the Iran conflict, the sector was already scoring some important milestones. In the US, for instance, battery energy storage installations surpassed 57 GWh in 2025, a 29% year over year growth, according to the Solar Energy Industries Association. SEIA anticipates the installations to reach 70 GWh this year, which will equate to about $25.2 billion in capital investment. Globally, InfoLink Consulting projects energy storage system installations to reach 353 GWh this year, and that China, the US, and Europe will continue to dominate.
Given this reality, this article highlights some of the best energy storage stocks to buy, especially those with substantial interest from hedge funds.
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Our Methodology
To compile our list, we used financial media sources, including CNN and Bloomberg, as well as energy storage-focused ETFs such as the iShares Energy Storage & Materials ETF and the Global X Lithium & Battery Tech ETF, to build an initial pool of U.S.-listed energy storage companies. From this pool, we filtered for stocks with a positive analyst consensus upside potential as of April 9, 2026. We also considered hedge fund sentiment for each stock, using Q4 2025 holdings data from Insider Monkey’s 13F database. The final list is ranked in ascending order based on the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Energy Storage Stocks to Buy According to Hedge Funds
10. T1 Energy Inc. (NYSE:TE)
Number of Hedge Funds Holding: 12
Stock Upside: 103.84%
T1 Energy Inc. (NYSE:TE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, BTIG analyst Gregory Lewis reiterated a Buy rating on T1 Energy Inc. (NYSE:TE) with a $7 price target. The decision came after T1 Energy shared its Q4 FY2025 earnings.
Lewis noted that T1 Energy’s Q4 earnings sent its stock down 15% in the week during which it shared the report. The trigger of the selloff, noted Lewis, was a quarterly EBITDA loss of roughly $51 million, which outweighed the $12 million recorded in Q4 FY2024.
On why he reaffirmed his stance on the stock despite the disappointing earnings, Lewis said the losses were not a sign that the business is breaking down. Instead, they were largely the result of one-time costs tied to achieving Foreign Entity of Concern (FEOC) compliance under the One Big Beautiful Bill Act. This is a requirement companies must meet to qualify for IRA solar tax credits. To be compliant, T1 Energy made three costly but deliberate moves during the quarter: it transferred Trina Solar intellectual property to a Singaporean distributor, purchased certified non-FEOC solar cells to cover part of its 2026 module production, and paid down Trina-linked debt through new capital raises, the analyst noted.
The analyst also acknowledged that tariff uncertainty may weigh on interim merchant sales during the construction phase of T1 Energy’s flagship G2 Austin manufacturing facility. Though the analyst is aware that the company is working toward an April close for the remaining $350 million in Phase 1 funding for that project.
T1 Energy Inc. (NYSE:TE) is a renewable energy manufacturing company that provides solar modules and energy storage supply chain solutions. It develops and sales battery energy storage systems designed for utility-scale, commercial, and industrial applications. Its storage business utilizes advanced cell architectures, such as SemiSolid technology, intended to improve the safety and density of long-duration storage products.
9. Energy Vault Holdings, Inc. (NYSE:NRGV)
Number of Hedge Funds Holding: 14
Stock Upside: 41.07%
Energy Vault Holdings, Inc. (NYSE:NRGV) is one of the best energy storage stocks to buy according to hedge funds. On March 24, Energy Vault Holdings, Inc. (NYSE:NRGV) acquired the McMurtre Battery Energy Storage System from Belltown Power. The McMurtre BESS is a 175 megawatt (MW) or 350 megawatt-hour (MWh) project near Dallas, Texas.
The project sits within the ERCOT North market, one of the fastest-growing power demand zones in the US, Energy Vault detailed in the release. It added that the project already has an executed small generator interconnection agreement and full site control, which significantly de-risks the path to construction.
The company said it will deploy its latest B-VAULT AC Technology Platform 3 at the site. This is Energy Vault’s most advanced system to date that is engineered for rapid deployment and high availability in ERCOT grid conditions. The company anticipates the project’s commercial operations to commence by December 2027, and that the Notice to Proceed should be ready in Q4 2026. Once the project reaches Ready-to-Build status, Energy Vault will contribute it to its Asset Vault investment platform, which is a fully consolidated subsidiary dedicated to owning and operating storage assets globally.
Over the project’s lifetime, Energy Vault projects it to generate $350-$375 million and above in total revenues, or roughly $15-$20 million annually. The company is currently evaluating investment-grade offtake structures to secure bankable, front-loaded revenue.
Energy Vault Holdings, Inc. (NYSE:NRGV) is an energy storage technology company. It specializes in gravity-based and hybrid energy storage solutions designed to support grid-scale applications.
8. EnerSys (NYSE:ENS)
Number of Hedge Funds Holding: 23
Stock Upside: 0.11%
EnerSys (NYSE:ENS) is one of the best energy storage stocks to buy according to hedge funds. On March 24, EnerSys (NYSE:ENS) CEO Shawn O’Connell and CFO Andrea Funk appeared in a fireside chat at the 38th Annual ROTH Conference in Dana Point, California, where O’Connell outlined a strategic reset and growth roadmap for the company.
O’Connell said he launched a company-wide initiative called “EnerGize.” He explained that this is a strategic reset whose goal is to refocus the company on the core business, cut costs that do not add value, and sharpen execution.
On the telecom side, O’Connell said the sector had gone through an unusually deep downturn, one he said he has seen only twice in his career since the 1990s. This downturn, the CEO said, was driven by inventory buildup, a “5G monetization issue,” and rising interest rates. However, he noted the company is now beginning to see “green shoots” as carriers and broadband providers are being pushed to expand data capacity, particularly for AI-related use cases.
On his part, Funk, the CFO, said the company has delivered a little over 100% free cash flow conversion over multiple years. The company also ended the last quarter at 1.2x leverage and is expecting an IRS refund of about $120 million, Funk noted. He added that the company has ordered capital priorities as internal investment, has seen its dividends grow with earnings, implemented disciplined acquisitions, and conducted a $1 billion stock buyback program.
EnerSys (NYSE:ENS) is a global provider of stored energy solutions. It specializes in industrial batteries, energy systems, and power equipment used across sectors such as telecommunications, data centers, and transportation.
7. Fluence Energy, Inc. (NASDAQ:FLNC)
Number of Hedge Funds Holding: 34
Stock Upside: 41.01%
Fluence Energy, Inc. (NASDAQ:FLNC) is one of the best energy storage stocks to buy according to hedge funds. On April 6, Fluence Energy, Inc. (NASDAQ:FLNC) assured clients that its US-manufactured products remain available and qualify for domestic content tax credits under the One Big Beautiful Bill Act.
The product in focus is Fluence’s Gridstack Pro BESS platform, which uses battery cells manufactured in Tennessee and modules assembled in Utah. The company’s statement means that Gridstack Pro is one of the first BESS in the US to qualify for domestic content incentives under clean energy legislation.
Separately, on March 31, SEC filing shows that Fluence executed Amendment Number Four to its Syndicated Facility Agreement, or SFA. The SFA is a credit facility originally established on November 22, 2023. The main change during the latest amendment is an extension of the SFA’s trigger date from December 31, 2025, to December 31, 2026. This gives the company an extra year before stricter compliance requirements kick in.
The other change entails the minimum liquidity covenant of $150 million, which requires the company to maintain at least that amount in available liquidity at all times. The new amendment extended this requirement for the same period.
In exchange for these extensions, Fluence must post $50 million in cash collateral if its total revolving credit drawdowns exceed $450 million. Also, certain investments by the company’s loan parties are now capped at a $150 million aggregate before the trigger date.
Fluence Energy, Inc. (NASDAQ:FLNC) is a global provider of energy storage products, digital applications, and services tailored for utilities, developers, and commercial customers. The company specializes in grid-scale battery energy storage systems where it offers modular solutions that enable the storage and dispatch of electricity from renewable sources such as solar and wind.
6. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Funds Holding: 44
Stock Upside: 35.14%
Enphase Energy, Inc. (NASDAQ:ENPH) is one of the best energy storage stocks to buy according to hedge funds. On March 26, Enphase Energy, Inc. (NASDAQ:ENPH) launched its IQ Energy Management platform in Australia and New Zealand. The company said in a press release that the system is an artificial-intelligence-driven software platform that integrates with Enphase solar panels, IQ Battery storage systems, and the IQ Energy Router suite of hardware. This enables users to intelligently manage a home’s energy across solar generation, battery storage, electric water heaters, and EV chargers. It also allows users to control all of these devices through the Enphase App.
The system continuously monitors electricity rates, forecasts solar production and home energy demand, and then decides the optimal time to heat water or charge an EV, the company said. It added that the system enables users to prioritize self-generated solar energy and off-peak grid rates over expensive peak-time power.
According to the company, intelligent monitoring matters a lot in the Australia and New Zealand markets because electric water heating alone accounts for 15%-30% of a typical consumer household’s electricity bill. When combined with the rising uptake of EVs, the opportunity for AI-driven optimization across these loads is substantial, Enphase noted in the release.
The company’s SVP of Sales Ken Fong described Australia and New Zealand as “global leaders in residential electrification.” He added that IQ Energy Management platform’s launch is designed to give installers “a powerful new way to increase the value of every Enphase system by optimizing key home appliances from one intelligent platform.”
Enphase Energy, Inc. (NASDAQ:ENPH) is an energy technology company. It designs and manufactures microinverter-based solar and battery storage systems for residential and commercial applications.
5. The AES Corporation (NYSE:AES)
Number of Hedge Funds Holding: 52
Stock Upside: 4.17%
The AES Corporation (NYSE:AES) is one of the best energy storage stocks to buy according to hedge funds. On March 26, Argus Research analyst John Eade downgraded The AES Corporation (NYSE:AES) from Buy to Hold, citing the company’s pending acquisition agreement with a consortium of investors. This consortium is led by Global Infrastructure Partners, which intends to absorb the company at $15 per share.
Eade clarified that the downgrade is not a negative view on AES’s business, rather, he is only acknowledging that with a buyout price locked in at $15, there is limited room for the stock to move higher. As such, a Buy rating no longer makes sense from a return standpoint. He noted that the 6% gap between the current stock price and the offer price reflects the time value of money and possibly minor uncertainty over the timing of closing. Put simply, Eade conceded that the deal is not risk-free, even if the risks appear small.
The analyst noted that the transaction has been unanimously approved by AES’s Board of Directors and is expected to close in late 2026 or early 2027. This is subject to regulatory approvals, and Eade noted that few, if any, other bidders have emerged, which means the likelihood of a competing or higher offer is quite low.
On March 25, 2026, Maximo, the solar robotics company incubated by AES, announced the successful installation of 100 MW of utility‑scale solar at AES’ Bellefield complex. The milestone highlights how Maximo’s robotic fleet, supported by NVIDIA AI and AWS cloud systems, is moving from pilot validation to sustained commercial deployment. By integrating robotics into standard construction workflows, the company nearly doubled installation productivity while maintaining safety and quality, underscoring the role of AI‑driven robotics in accelerating global solar expansion.
The AES Corporation (NYSE:AES) is a global power company. It develops, owns, and operates a diversified portfolio of electricity generation and distribution assets, and its operations are increasingly focusing on renewable energy and energy storage. The company deploys utility-scale battery energy storage systems across multiple markets.
4. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Funds Holding: 54
Stock Upside: 19.50%
Generac Holdings Inc. (NYSE:GNRC) is one of the best energy storage stocks to buy according to hedge funds. On April 7, 2026, Generac Holdings Inc. (NYSE:GNRC) announced a collaboration with CPower Energy to help commercial and industrial customers in PJM, North America’s largest grid, improve resiliency and demand response as electricity demand and prices surge.
The partnership combines Generac’s equipment and dealer network with CPower’s market expertise to deploy distributed generation solutions such as battery storage, generators, and microgrids.
Through this collaboration, customers can participate in capacity, ancillary services, and on‑bill programs, creating new recurring revenue streams and energy savings. Generac emphasized that pairing multiple assets like batteries and generators enhances economic dispatch and resilience, while CPower highlighted the ability for customers to turn distributed generation into flexible energy assets that reduce costs and support the grid. This initiative reinforces Generac’s push to scale its C&I business and lead in sustainable energy solutions.
On April 1, Canaccord Genuity lifted its price target on Generac Holdings Inc. (NYSE:GNRC) from $275 to $300 and kept the Buy rating unchanged. The firm took the decision after Generac’s financial outlook presentation at its analyst and investor day.
After analyzing Generac’s presentation, Canaccord revised its earnings estimates; it raised its 2028 non-GAAP EPS estimate to $13.09 from $12.48, and now values the stock at about 23 times that estimate.
Canaccord also noted that Generac’s Q4 FY2025 earnings, which undershot expectations, heavily weighed on its decision. The company shared the earnings report on February 11 in which the $1.61 EPS was well below the $1.81 that Wall Street expected. Quarterly revenue came in at $1.09 billion, which was a 11.6% year over year decline. However, Canaccord stated that this earnings softness did not shake their conviction because Generac’s management laid out a longer-range growth picture at the investor day that appeared credible. For instance, the management expects 2028 revenue to range from $6.2 billion to $6.6 billion and EBITDA to fall into the $1.25 billion to $1.45 billion range, the firm noted.
Generac Holdings Inc. (NYSE:GNRC) manufactures power generation equipment and energy technology solutions for residential, commercial, and industrial markets. Some of these include energy storage solutions like the PWRcell platform, which allows homeowners to store electricity for use during outages or peak demand periods.
3. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Funds Holding: 64
Stock Upside: 9.69%
Bloom Energy Corporation (NYSE:BE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, Baird analyst Ben Kallo reiterated an Outperform rating and a $172 price target on Bloom Energy Corporation (NYSE:BE) following the company’s 2025 proxy filing. The filing revealed that Bloom had exceeded the high end of its annual performance targets across key financial metrics, noted Kallo.
The filing showed that Bloom posted $2.02 billion in total revenue in 2025, which is well above the $1.75 billion targeted. Non-GAAP operating income came in at $221 million, also surpassing the $180 million target, the analyst noted.
The analyst noted that the blowout 2025 results came on the back of several wins. For starters, Bloom met all three of its key strategic objectives, including hitting specified bookings in megawatts, securing large data center wins, and achieving 70% of deployable bookings to sustain forward product revenue growth. These milestones were tied to the compensation targets of its Chief Commercial Officer.
Another win, which was made possible by Bloom using C3.ai technology in a 2024 pilot program to extend its stack lifespan, was that the company achieved a 20% increase in stack lifespan against a 10% target. As a result, the company is now rolling out that improvement across its entire fleet of energy servers.
Bloom Energy Corporation (NYSE:BE) is an energy technology company. It designs and manufactures solid oxide fuel cell systems for on-site power generation. The company is also involved in the broader energy storage ecosystem through its development of hydrogen-based solutions, including electrolyzers that can produce hydrogen using excess renewable energy.
2. NextEra Energy Inc. (NYSE:NEE)
Number of Hedge Funds Holding: 72
Stock Upside: 4.07%
NextEra Energy Inc. (NYSE:NEE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, Jefferies analyst Julien Dumoulin-Smith raised his price target on NextEra Energy Inc. (NYSE:NEE) from $87 to $92 while keeping a Hold rating. The analyst cited confidence in NextEra’s long-term earnings growth trajectory and a reassessment of the stock’s valuation after a significant re-rating.
Dumoulin-Smith noted that he believes NextEra can deliver 8% or more EPS compound annual growth rate. The key near-term catalyst the analyst is watching is data center power deals, which he expects to materialize in 2026. This is consistent with an earlier note, published on January 26, in which Jefferies identified substantial power contracts related to large data centers as the primary driver for the stock in 2026.
On the data center power front, NextEra has a concrete project in motion, noted Dumoulin-Smith. The company is involved in 9.5 GW of natural gas power plant projects in Pennsylvania and Texas. These are tied to a broader $550 billion trade deal with Japan and enjoy the backing of President Trump, though Jefferies cautioned that this announcement is still in the very early stages.
However, the analyst noted the stock has re-rated to the highest utility premium on the Street, excluding Entergy (NYSE:ETR). As such, the stock is trading at a price-to-earnings ratio of 27.82, which puts it roughly 16% above its 2028 peers. This puts NextEra’s stock closer to fair value and leaves limited margin of safety for new buyers, Dumoulin-Smith concluded.
NextEra Energy Inc. (NYSE:NEE) is an electric utility and energy infrastructure company. Through its subsidiary, NextEra Energy Resources, it develops and operates utility-scale storage projects that provide energy shifting, frequency regulation, and capacity services.
1. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Funds Holding: 120
Stock Upside: 34.01%
Tesla Inc. (NASDAQ:TSLA) is one of the best energy storage stocks to buy according to hedge funds. On April 9, GLJ Research analyst Gordon Johnson reiterated a Sell rating on Tesla Inc. (NASDAQ:TSLA) and maintained his $25.28 price target.
Johnson’s main argument is that Tesla’s share price has been inflated for six years not primarily by fundamentals, but by heavy retail call buying that pushed dealers into gamma hedging. As a result, the dealers were forced to buy Tesla stock to offset their exposure, which drove stock price much higher. Analysts describe this pattern as a gamma squeeze.
In 2026, analyst Gordon Johnson argued that Tesla’s stock is no longer being boosted by retail options trading. He pointed out that the put‑to‑call ratio has barely dropped below 0.60 this year, unlike in past years when such moves often triggered gains through dealer hedging. Tesla’s call option activity has also fallen behind the broader S&P 500 every session in 2026, showing weaker investor appetite. Johnson believes this means Tesla’s valuation will now shift away from options‑driven momentum and back toward its actual business fundamentals.
Tesla Inc. (NASDAQ:TSLA) is an electric vehicle and clean energy company. It designs and manufactures battery-based energy storage systems for residential, commercial, and utility-scale applications. Its energy storage products include the Powerwall for homes, the Powerpack for commercial use, and the Megapack for large-scale grid projects, all of which store electricity for later use and support grid stability.
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