In this article, we will take a look at 10 Most Undervalued Renewable Energy Stocks To Buy Right Now.
In 2024, global energy demand increased by 2.2%, quicker than the average over the last decade. Electricity use rose significantly, up 4.3% from last year, primarily due to hotter temperatures, electrification, and the growing digital sector. Renewables were the biggest contributors to the higher energy supply, followed by natural gas and coal. Most of the demand growth came from emerging economies, especially China and India. Natural gas had the strongest growth among fossil fuels, while oil demand softened, plunging below 30% of the energy mix for the first time in 50 years. According to the International Energy Agency, more than 80% of new electricity generation came from renewables and nuclear power in 2024. Solar and wind energy hit new records, and EV sales skyrocketed past 17 million units.
Solar capacity grew by 88% last year, helping it overtake hydropower and nuclear as the fourth largest source of installed capacity. While wind power faced hurdles like supply chain issues and permitting delays, it still set a new generation record and even outperformed coal for two straight months. Battery storage also saw impressive growth, rising by 64%, as utilities used it to store extra wind and solar energy. Looking ahead to 2025, Deloitte expects clean energy demand to grow even more, driven by the rise of clean tech manufacturing, data centers, and carbon capture projects, all of which are increasingly relying on 24/7 clean power.
The American nonprofit organization, Resources for the Future, noted that clean energy saw a major boost with a record $2 trillion invested in technologies like renewables and energy-efficient infrastructure during 2024. This sped up the global energy transition, especially in solar and wind power. While renewables are now some of the cheapest energy sources, fossil fuels, especially coal and gas, still make up a big part of global energy use. Coal is expected to decline significantly by 2050, while the role of gas depends on how ambitious climate policies become. Regions like the United States, Europe, and especially China have led solar growth, but other countries are starting to catch up. However, high costs and financial risks in developing countries could slow things down.
With that outlook in mind, let’s take a look at the most undervalued renewable energy stocks to buy.
A photovoltaic field at dawn, its solar panels shimmering in the light of a new day.
Our Methodology
For this article, we made a list of all renewable energy stocks listed on American exchanges and picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings, as per Insider Monkey’s Q4 2024 database, ranking the list from least to most hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
PE Ratio as of April 30: 15.72
Number of Hedge Fund Holders: 12
HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is an American investment company that focuses on clean energy and sustainable infrastructure. HASI invests in projects that improve energy efficiency, like better HVAC systems, lighting, and insulation, as well as renewable energy sources such as solar and wind. It also supports projects outside the power grid, including clean transportation, renewable fuels, and environmental restoration. It is one of the most undervalued stocks to buy.
On March 31, Truist analyst Jordan Levy maintained a Buy rating on HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) with a $40 price target. Analysts observe that the stock is up 10% this year, outperforming a struggling market due to its adaptability and strong business model.
In January this year, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) partnered with IGS Solar to finance residential solar and energy storage systems across the United States. Their first investment will support a 71 MW portfolio set to roll out in 2025, in states like New York, New Jersey, Pennsylvania, and Florida. The systems will be offered to homeowners through 25-year leases, helping them save on monthly electricity bills.
According to Insider Monkey’s fourth quarter database, 12 hedge funds were bullish on HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI), compared to 11 funds in the prior quarter. Hood River Capital Management was the leading stakeholder of the company, with 1.60 million shares valued at $43 million.
9. Canadian Solar Inc. (NASDAQ:CSIQ)
PE Ratio as of April 30: 17.87
Number of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) is a global provider of solar energy and battery storage solutions. The company designs and manufactures solar panels, battery products, and system kits. Canadian Solar Inc. (NASDAQ:CSIQ) is one of the most undervalued stocks in the renewable space.
On April 25, Roth MKM analysts downgraded CSIQ stock to Neutral from Buy, and trimmed the price target from $15 to $9. The company was downgraded due to concerns about its core module business, which has been struggling with a global oversupply. Analysts at Roth MKM also pointed out that new tariffs, including a 145% tariff from China, are adding uncertainty, especially for the company’s storage business.
On April 1, Canadian Solar Inc. (NASDAQ:CSIQ) announced a partnership with Flow Power in Australia to launch the country’s first solar project using its anti-hail technology. Set to be completed in 2025, the Coonawarra solar and battery energy storage system in South Australia will provide extra protection for solar panels against extreme weather like hailstorms. This marks the debut of Canadian Solar’s anti-hail modules in Australia.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2024, Canadian Solar Inc. (NASDAQ:CSIQ) was part of 13 public stock portfolios, compared to 9 in the prior quarter.
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