5 Best Alternative Fuel Stocks To Buy Right Now

In this article, we discuss the 5 best alternative fuel stocks to buy right now. To read the industry analysis and the recent market behavior around the stocks, go directly to the 11 Best Alternative Fuel Stocks To Buy Right Now.

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

Number of Hedge Fund Holders: 43

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli renewable energy company that manufactures solar inverters for solar power systems and provides energy storage solutions, and energy monitoring systems.

In the fourth quarter of 2022, Rima Senvest Management increased its holdings in SolarEdge Technologies, Inc. (NASDAQ:SEDG) by 125% to 759,071 shares worth over $215 million, and became the most significant shareholder of the company in the quarter. In Q4, 43 hedge funds held SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s stock.

In 2022, SolarEdge Technologies, Inc. (NASDAQ:SEDG) reported record revenues of $3.11 billion, representing a 58% YoY surge mainly due to $2.92 billion generated by its solar segment. The solar segment revenues were up 63% from 2021. Furthermore, the company’s non-GAAP net income was up 29% from 2021 levels at $351.2 million.

Here is what ClearBridge Investments had to say about SolarEdge Technologies, Inc. (NASDAQ:SEDG) in its Q2 2022 investor letter:

“We are well-positioned to participate in the accelerating energy transition. High and rising utility costs combined with policy support are driving increased penetration of home solar plus storage systems in Europe. Israel-based SolarEdge Technologies (NASDAQ:SEDG) expects to see significant growth in solar installations in this market led by Germany and Italy, among others, where consumers are not only demanding solar on the roof but a complete system solution including batteries. This phenomenon is accelerating revenue growth for these companies.”

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

Number of Hedge Fund Holders: 44

First Solar, Inc. (NASDAQ:FSLR) manufactures and sells solar panels and provides solar farms and related services. For 2023, the company has provided quite optimistic guidance with net sales to be expected in the range of $3.4 billion to $3.6 billion and diluted EPS between the range of $7.00 to $8.00. On top of that, First Solar, Inc. (NASDAQ:FSLR) guided its net cash balance between $1.2 billion to $1.5 billion at the end of 2023.

On March 14, Argus analyst Bill Selesky reiterated a Buy rating on First Solar, Inc. (NASDAQ:FSLR) after increasing the company’s price target to $261 from $176. Selesky forecasts a “monumental swing” in the company’s profitability in the current year and believes that the Inflation Reduction Act makes a significant bullish case for the company in the coming years.

According to our database, 44 hedge funds had a stake in First Solar, Inc. (NASDAQ:FSLR) in the fourth quarter of 2022. The hedge funds had invested a combined total of approximately $700 million.

3. General Electric Company (NYSE:GE)

Number of Hedge Fund Holders: 59

General Electric Company (NYSE:GE) is an American conglomerate headquartered in Boston, Massachusetts. It is one of the smartest companies to buy according to hedge funds. Through its subsidiary, GE Renewable Energy, the company focuses on renewable energy production through wind, hydroelectric, and solar power. Moreover, General Electric Company (NYSE:GE) is the largest wind turbine manufacturer in the world.

On March 17, it was revealed that General Electric Company (NYSE:GE) is planning to install one of the world’s most powerful wind turbines in Japan. The company increased the power output of the turbine by 30% compared to its previous model and it is expected to serve around 24,000 households in the country.

On March 10, BofA maintained a Buy rating on General Electric Company (NYSE:GE)’s shares with a $105 price target, up from $96. The firm noted that the price target was raised due to the company’s 2025 operating profit guidance provided on its latest Investor Day.

Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q4 2022 investor letter:

“General Electric Company (NYSE:GE) recently spun off its health care businesses, General Electric HealthCare Technologies, which has leading market share positions in medical imaging products including MRI devices and CT scanners. General Electric’s remaining businesses include Aerospace and its Power and Renewables business. Aerospace is performing well and comprises the bulk of General Electric’s value in our opinion. We believe that the spin-off of General Electric HealthCare Technologies has highlighted the value of General Electric’s remaining business units. General Electric intends to spin out its Power and Renewables business unit early in 2024.”

2. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 61

NextEra Energy, Inc. (NYSE:NEE) is a Florida-based utility company serving the United States and Canada. Through its subsidiary NextEra Energy Partners, LP (NYSE:NEP), it provides wind, solar, and natural gas-based energy solutions.

NextEra Energy, Inc. (NYSE:NEE) has been increasing its dividend for the last 30 years. Even though the company’s dividend yield of 2.47% (at the time of writing) is lower than the sector’s average yield of 3.75%, it has almost tripled its payout in the last 10 years. On February 17, NextEra Energy, Inc. (NYSE:NEE) declared a 10% increase in its quarterly dividend to $0.4675 per share. It was paid out on March 15 to the shareholders of record on February 28.

On January 26, Guggenheim analyst Shahriar Pourreza maintained a Buy rating on NextEra Energy, Inc. (NYSE:NEE)’s stock and lowered the price target to $96 from $102. The analyst’s price target represents a 26.8667% upside to the company’s stock price of $75.67 at the time of writing.

ClearBridge Investments made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2022 investor letter:

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

1. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 63

Enphase Energy, Inc. (NASDAQ:ENPH) is an American clean energy company that manufactures photovoltaic inverters, battery energy storage solutions, and electric vehicle supply equipment. It is one of the largest exporters of photovoltaic inverters in the world. Moreover, Enphase Energy, Inc. (NASDAQ:ENPH)’s EV charger market is growing at a CAGR of 40% in the US.

In Q4 2022, Enphase Energy, Inc. (NASDAQ:ENPH) stock was held by 63 hedge funds, compared to 59 in the previous quarter. Two Sigma Advisors owned over 1.3 million of the company’s shares worth $354.44 million, making it the most significant stakeholder of the company in Q4 2022.

Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most promising solar stocks according to analysts. In the last three months, 21 Wall Street analysts covered the company stock with 16 of them keeping a Buy or Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH). The rest of the five analysts have a Hold rating on the company stock.

Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:

“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”

You can also take a look at the 11 Most Undervalued EV Stocks To Buy According To Hedge Funds and the 15 Most Promising Long-Term Stocks According to Analysts.