10 Best Tech Stocks To Buy Under $5

4. Shoals Technologies Group, Inc. (NASDAQ:SHLS)

Share Price: $4.73

Number of Hedge Fund Holders: 30

Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of the 10 best tech stocks to buy under $5. On May 30, Jefferies analyst Julian Dumoulin-Smith raised the price target for Shoals Technologies Group, Inc. (NASDAQ:SHLS) from $3.90 to $4.90 but kept a “Hold” rating.

The analyst noted the positive impact of the Foreign Exchange Operations Coverage (FEOC) language. For Shoals Technologies Group, Inc. (NASDAQ:SHLS), this significantly reduces competitive risks from Chinese suppliers. Combined with tariffs, this is expected to encourage customers to choose US-based solutions.

Dumoulin-Smith also increased revenue forecasts for Shoals Technologies Group, Inc. (NASDAQ:SHLS) for 2025 and 2026 by 5% and 8% to $448 million and $524 million, respectively. This reflects the company’s strong position in the utility-scale solar market.

Despite this, Dumoulin-Smith expressed caution about long-term challenges. He noted emerging competitors like NXT, which is expanding into the electrical balance of system (eBOS) market. This could challenge the market share of Shoals Technologies Group, Inc. (NASDAQ:SHLS).

Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of eBOS solutions and components, including battery energy storage solutions and components for the global energy transition market.