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.
8. Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR)
PE Ratio as of April 30: 9.81
Number of Hedge Fund Holders: 14
Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) ranks 8th on our list of the most undervalued stocks. It is a Brazilian electricity provider that generates, transmits, and sells power. The company uses energy sources such as hydroelectric, thermoelectric, nuclear, wind, and solar plants.
On March 14, Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) reported a roughly 25% year-over-year increase in its Q4 2024 net profit, which came in at $191.4 million. The company also announced $310 million in dividends for shareholders.
Walleye Capital, an American multi-strategy hedge fund, announced on April 25 that it purchased 174,618 shares of Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) in the fourth quarter of 2024. The stake is valued at about $999,000.
According to Insider Monkey’s fourth quarter database, 14 hedge funds reported owning stakes in Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR), compared to 9 funds in the previous quarter. Israel Englander’s Millennium Management was the leading stakeholder of the company, with 4.2 million shares valued at $24 million.
7. National Grid plc (NYSE:NGG)
PE Ratio as of April 30: 26.85
Number of Hedge Fund Holders: 17
National Grid plc (NYSE:NGG) is a London-based company involved in transmitting and distributing electricity and gas. National Grid Renewables, launched in October 2020, is the US branch of NGG dedicated to speeding up the clean energy transition. It develops, owns, and operates large-scale solar, wind, and battery storage projects across the country. National Grid plc (NYSE:NGG) is one of the most undervalued stocks to invest in.
On April 29, UBS analysts downgraded National Grid plc (NYSE:NGG) from Buy to Neutral, and trimmed the price target to £11.50 from £11.60. UBS downgraded National Grid, noting the stock does not have much room to grow since it is already trading close to its 52-week high. Analysts commented that the benefits of recent regulatory updates and a rise in US returns are likely already reflected in the share price.
National Grid has proposed Sea Link, a 138 km electricity connection linking Kent to Suffolk, as part of its Great Grid Upgrade. The project includes mostly offshore cables and aims to deliver more renewable energy to meet growing demand. It is in the pre-examination phase as of April 24, 2025, and the company welcomes public input before the Secretary of State makes a final decision. Sea Link is expected to strengthen energy security and support a cleaner power network.
According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on National Grid plc (NYSE:NGG), compared to 19 funds in the prior quarter. Jim Simons’ Renaissance Technologies was the largest stakeholder of the company, with 3.1 million shares worth $185.2 million.
6. Ameresco, Inc. (NYSE:AMRC)
PE Ratio as of April 30: 10.15
Number of Hedge Fund Holders: 19
Ameresco, Inc. (NYSE:AMRC) is a Massachusetts-based company delivering clean energy and efficiency solutions across the United States, Canada, and Europe. The company upgrades systems like heating, cooling, and lighting. It also builds and runs renewable energy projects, such as solar, wind, and renewable gas, for governments, utilities, schools, and private companies. It is one of the most undervalued stocks to watch.
On April 16, Jefferies analyst Julian Dumoulin-Smith maintained a Hold rating on Ameresco, Inc. (NYSE:AMRC) and lowered the price target from $13 to $10. Ameresco’s stock has plummeted by over 70% in the last six months, now sitting close to its 52-week low. There are challenges ahead for the company, including a project cancellation, shifting tariffs, and uncertainty around the Inflation Reduction Act (IRA). These issues, combined with unclear prospects in its Energy Assets division, have led Jefferies to revise its revenue forecast for the company down by 1-2% for 2026 and beyond.
Ameresco, Inc. (NYSE:AMRC) announced a partnership with Southwest Wisconsin Technical College on April 23 to complete a $1.6 million solar and battery energy storage project on campus. The new system includes a 300-kilowatt solar array and a 125-kilowatt battery, which will cover about 60% of the electricity needs for one of the college’s busiest buildings. This will help the school save around $30,000 annually on energy costs and provide backup power during outages.
According to Insider Monkey’s Q4 data, 19 hedge funds reported owning stakes in Ameresco, Inc. (NYSE:AMRC), compared to 15 funds in the preceding quarter. Jean-Marie Eveillard’s First Eagle Investment Management was the biggest stakeholder of the company, with 421,136 shares valued at nearly $10 million.
5. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
PE Ratio as of April 30: 27.07
Number of Hedge Fund Holders: 31
Shoals Technologies Group, Inc. (NASDAQ:SHLS) designs and manufactures electrical systems for the solar and battery storage industries. The company provides a wide range of products, including solar lead assemblies, cables, combiners, and performance monitoring solutions. It is one of the most undervalued stocks to buy.
On March 13, Oppenheimer analyst Colin Rusch reiterated an Outperform rating on Shoals Technologies Group, Inc. (NASDAQ:SHLS). Despite a 75% drop in stock price, SHLS shows strong demand, healthy liquidity, and profitability. Rusch also highlighted bipartisan support for renewable energy, aided by the Inflation Reduction Act funding, and maintained a $10 price target for the stock.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) announced on March 26 a collaboration with First Solar to strengthen domestic manufacturing in Alabama, supporting the reshoring of the US solar supply chain. First Solar’s new $1.1 billion facility in Alabama has created over 800 jobs, and Shoals provides custom junction boxes made locally, helping solidify FSLR as the largest solar manufacturer in the Western Hemisphere.
Among the hedge funds tracked by Insider Monkey, Shoals Technologies Group, Inc. (NASDAQ:SHLS) was part of 31 public stock portfolios at the end of Q4 2024. Steve Cohen’s Point72 Asset Management was the biggest stakeholder of the company, with 5.5 million shares worth $30.6 million.
4. Nextracker Inc. (NASDAQ:NXT)
PE Ratio as of April 30: 10.63
Number of Hedge Fund Holders: 41
Nextracker Inc. (NASDAQ:NXT) ranks 4th on our list of the most undervalued stocks in the renewable energy sector. The company specializes in solar trackers and software solutions for both large-scale and distributed solar projects worldwide. Nextracker offers the NX Horizon and NX Horizon-XTR trackers for different terrains, TrueCapture to optimize solar power production, and NX Navigator for managing and protecting solar projects.
On April 21, Piper Sandler maintained an Overweight rating on Nextracker Inc. (NASDAQ:NXT) with a price target of $49, down from $50. Piper Sandler has cut the company’s revenue and EBITDA forecasts due to market uncertainties, but remains positive on the company. With strong finances and a growing backlog, Nextracker is well-positioned to handle risks, including tariffs.
In mid-January, Nextracker Inc. (NASDAQ:NXT) partnered with UC Berkeley Engineering to create the CAL-NEXT Center for Solar Energy Research, with a $6.5 million donation from Nextracker. The center will focus on boosting solar power plant efficiency and integrating cutting-edge technology into UC Berkeley’s programs.
According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Nextracker Inc. (NASDAQ:NXT), compared to 32 funds in the last quarter.
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.
2. NextEra Energy, Inc. (NYSE:NEE)
PE Ratio as of April 30: 25.19
Number of Hedge Fund Holders: 84
NextEra Energy, Inc. (NYSE:NEE) is one of the largest clean energy companies based in Florida, generating electricity from wind, solar, nuclear, and natural gas. It also constructs and operates renewable energy projects, battery storage systems, and power lines. NEE ranks 2nd on our list of the most undervalued stocks.
On April 24, Mizuho Securities reiterated a Neutral rating on NextEra Energy, Inc. (NYSE:NEE) and slashed the price target from $73 to $69. Mizuho predicts that the company will potentially achieve the top end of its 6-8% earnings growth target, because of smart supply chain management and handling of tariff and tax credit issues. However, the investment firm pointed to risks like the potential repeal of IRA credits and the ongoing FPL rate case.
NextEra Energy, Inc. (NYSE:NEE)’s net income dropped in Q1 2025, coming in at $833 million, down from $2.268 billion in Q1 2024. However, the adjusted earnings rose nearly 9% year-over-year to $2.038 billion. FPL, a subsidiary of NextEra, saw its net income grow to $1.316 billion, driven by ongoing investments, particularly in solar energy, with its solar portfolio now exceeding 7.9 GW. The company is confident about its future prospects, with plans to expand solar and battery storage significantly over the next decade. NEE also expects to grow dividends by around 10% annually through at least 2026.
According to Insider Monkey’s fourth quarter database, 84 hedge funds were bullish on NextEra Energy, Inc. (NYSE:NEE), compared to 69 funds in the prior quarter. Rajiv Jain’s GQG Partners was the largest stakeholder of the company, with 10.8 million shares worth $780.25 million.
1. Constellation Energy Corporation (NASDAQ:CEG)
PE Ratio as of April 30: 19.05
Number of Hedge Fund Holders: 85
Constellation Energy Corporation (NASDAQ:CEG) is a Maryland-based company that delivers energy services across the United States. The company offers electricity, natural gas, and renewable energy solutions, using nuclear, wind, solar, natural gas, and hydroelectric sources. It ranks first on our list of the most undervalued stocks.
On April 9, Citi analysts led by Ryan Levine upgraded Constellation Energy Corporation (NASDAQ:CEG) to Buy from Neutral, slashing the price target to $232 from $334. After a recent dip in Constellation Energy’s stock, analysts are now more optimistic, seeing it as a better risk-reward at $184.94, down from its high of $352. The primary factors driving this optimism include potential colocation deals, natural gas projects in Texas, and the cushion from Production Tax Credits.
Constellation Energy Corporation (NASDAQ:CEG) declared a $0.3878 per share quarterly dividend on April 29. The dividend is distributable on June 6, to shareholders on record as of May 16.
According to Insider Monkey’s fourth quarter database, 85 hedge funds were bullish on Constellation Energy Corporation (NASDAQ:CEG), compared to 78 funds in the last quarter. Philippe Laffont’s Coatue Management was the biggest stakeholder of the company, with 6.63 million shares worth nearly $1.5 billion.
Overall, CEG ranks first among the 10 Most Undervalued Renewable Energy Stocks To Buy Right Now. While we acknowledge the potential of undervalued renewable energy stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CEG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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