10 Most Undervalued Energy Stocks to Buy According to Hedge Funds

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

No. of Hedge Fund Holders: 65

Forward P/E Ratio as of May 2: 7.63

First Solar, Inc. (NASDAQ:FSLR) is a leading American solar technology company and global provider of responsibly produced, eco-efficient solar modules. FSLR is unique among the ten largest solar manufacturers in the world for being the only US-based company and not manufacturing in China.

First Solar, Inc. (NASDAQ:FSLR) had a tough Q1 2025 as its EPS of $1.95 fell below estimates by a hefty $0.6. The company’s revenue of $844.57 million was in-line with expectations but fell sharply from $1.5 billion in the previous quarter, primarily due to ‘an anticipated seasonal reduction in the volume of modules sold.’ FSLR ended the quarter with a net cash balance of $0.4 billion, down from $1.2 billion at year-end, citing capital expenditures for its Louisiana manufacturing facility and increased inventories as reasons for the decrease.

The stock of First Solar, Inc. (NASDAQ:FSLR) took a major hit last week after its CEO, Mark Widmar, stated that the scale and depth of President Donald Trump’s tariffs were unexpected and posed a ‘significant economic headwind’ to the company’s manufacturing facilities. As a result, the company has now cut its FY 2025 forecast from expected earnings of $17 – $20 per share to $12.50 – $17.50 per share, while its estimated revenue has been downgraded from $5.3 – $5.8 billion to $4.5 – $5.5 billion. The stock has also now been downgraded by several analysts, since Wall Street previously viewed First Solar as the best-positioned company in the solar industry to weather tariffs because it has invested in manufacturing facilities in the US.