11 Best Solar Energy Stocks to Buy According to Hedge Funds

8. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

No. of Hedge Fund Holders: 30

SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops, manufactures, and sells direct current optimized inverter systems for solar photovoltaic installations in the United States, Germany, the Netherlands, Italy, the rest of Europe, and internationally.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) had a mixed Q4 2024 as its revenue of $196.22 million beat expectations by $7 million, despite being down by almost 38% YoY. However, the company’s adjusted EPS of -$3.52 fell below estimates by $1.86. SEDG’s reported cash used in operating activities came in at $313.3 million in 2024, compared to $180.1 million used in the prior year. That said, its free cash flow deficit for the year was reported at $421.5 million.

To drive a turnaround in performance, SolarEdge Technologies, Inc. (NASDAQ:SEDG) has identified four key priorities – strengthening its financials, regaining market share, accelerating innovation, and ramping up US manufacturing. As part of its cost-cutting measures, the company reduced its workforce by approximately 400 employees worldwide. It has revealed intentions to take further steps to rationalize its cost structure by focusing on core projects, concentrating our global footprint on profitable markets, and exiting non-strategic markets and product lines. Moreover, SEDG is now manufacturing inverters, optimizers, and batteries in the US, putting it at a significant advantage in the current geoeconomic landscape.