10 Most Undervalued Renewable Energy Stocks To Buy Right Now

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

PE Ratio as of April 30: 11.42

Number of Hedge Fund Holders: 65

First Solar, Inc. (NASDAQ:FSLR) is an American solar tech company that develops and sells advanced thin-film solar panels, offering a cleaner alternative to traditional silicon modules. FSLR ranks 3rd on our list of the most undervalued stocks in the clean energy space.

On April 30, TD Cowen maintained a Buy rating on First Solar, Inc. (NASDAQ:FSLR) but slashed the price target to $200 from $275. TD Cowen analysts revised their outlook on First Solar, citing both strengths and risks. The company remains financially strong with a 43.6% gross margin and stable backlog prices, and it is expanding US production to 14GW by 2026. However, tariff risks, IRA policy uncertainty, and potential production halts in Asia have led to a lowered 2025 guidance.

First Solar, Inc. (NASDAQ:FSLR)’s Q1 2025 results indicate a dip in sales and profit, with revenue falling to $0.8 billion and earnings per share dropping to $1.95, down from $3.65 per share last quarter. The decline was mainly due to seasonal sales slowdown and investments in a new manufacturing facility in Louisiana. Cash reserves also fell to $0.4 billion. Despite near-term challenges like new tariffs, First Solar, Inc. (NASDAQ:FSLR) remains confident in the long-term American solar market. It has revised its 2025 outlook and expects Q2 earnings to land between $2 and $3 per share, due in part to federal tax credits and its strong domestic manufacturing footprint.

According to Insider Monkey’s fourth quarter database, 65 hedge funds were bullish on First Solar, Inc. (NASDAQ:FSLR), compared to 59 funds in the last quarter. Samlyn Capital was a notable stakeholder of the company, with 1.63 million shares worth $288.75 million.