In this article, we will be taking a look at the 5 best clean energy stocks to buy today. To read our detailed analysis of these stocks and the outlook for the renewable energy sector, you can go directly to see the 9 Best Clean Energy Stocks To Buy Today.
5. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 25
Sunnova Energy International Inc. (NYSE:NOVA) is one of the clean energy stocks outperforming the market in the middle of the Russian-Ukraine crisis. Following President Biden’s ban on Russian oil on March 8, Sunnova Energy International Inc. (NYSE:NOVA) shares rose nearly 25% as the cost of alternative energy production becomes more competitive as oil prices go up.
In 2021, the Texas-based solar company added 87,900 customers, bringing its total customer count to 195,400 by the end of December 2021. Sunnova Energy International Inc. (NYSE:NOVA) forecasts 85,000 to 89,000 new customers this year.
Steven Cohen’s Point72 Asset Management is one of the biggest shareholders of Sunnova Energy International Inc. (NYSE:NOVA). The Connecticut-based hedge fund firm boosted its stake in the residential solar company by 52% in the fourth quarter of 2021, bringing its total holdings to over 1 million shares worth $29.7 million. At the end of the fourth quarter of 2021, 25 hedge funds were long Sunnova Energy International Inc. (NYSE:NOVA) with a total stake value of $150 million.
4. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 31
Another residential solar company in our list of the best clean energy stocks to buy today is Sunrun Inc. (NASDAQ:RUN), a California-based solar panel and battery storage company. Sunrun Inc. (NASDAQ:RUN) is one of the companies capitalizing on the growing solar industry in the US, adding 29,870 customers in the fourth quarter, bringing total customers to 660,311, a 20% year-over-year increase in customer base.
BMO Capital analyst Ameet Thakkar maintained his Overweight rating on Sunrun Inc. (NASDAQ:RUN) in February. According to Thakkar, the solar company still have a lot of room to grow as the demand for clean energy is still very high. The analyst set a price target of $42 for the stock.
Among the hedge funds being tracked by Insider Monkey, Tiger Global Management LLC is the leading shareholder in Sunrun Inc. (NASDAQ:RUN), with over 7 million shares worth more than $243 million. Overall, 31 funds of the 924 elite funds tracked by Insider Monkey reported owning stakes in Sunrun Inc. (NASDAQ:RUN) at the end of December 2021.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 50
Enphase Energy, Inc. (NASDAQ:ENPH) was recently upgraded to Buy from Hold by Craig-Hallum analyst Eric Stine after delivering strong fourth-quarter results and announcing its Q1 2022 guidance. The California-based solar company reported a Q4 GAAP net income of $52.6 million or $0.37 EPS. Enphase Energy, Inc.’s (NASDAQ:ENPH) total revenue in the fourth quarter was $413 million, an increase from $265 million in Q4 2020, which brings full-year revenue to $1.38 billion. Eric Stine kept a $241 price target for the stock.
The continued strong demand for Enphase Energy, Inc.’s (NASDAQ:ENPH) microinverters was one of the factors that drove revenue in the quarter. In the fourth quarter, the company shipped 3,033,891 microinverters and 100.2 megawatt-hours of Enphase IQ Batteries.
The number of hedge funds tracked by Insider Monkey holding stakes in Enphase Energy, Inc. (NASDAQ:ENPH) totaled 50 in Q4 2021, compared to 52 in the preceding quarter. These stakes hold a value of over $763 million.
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 55
Utility company NextEra Energy, Inc. (NYSE:NEE) boasts itself as the world’s largest wind and solar energy producer. Through its Florida Power & Light Company subsidiary, NextEra Energy, Inc. (NYSE:NEE) serves more than 5.7 million customer accounts in the state.
Market analysts and hedge funds are bullish about NextEra Energy, Inc. (NYSE:NEE) as the company boasts a healthy financial profile. Moreover, NextEra Energy, Inc. (NYSE:NEE) has increased its annual dividend payment for the past 26 years, making it a dividend aristocrat. The company plans to boost its payout by around 10% per year until at least 2024. Our hedge fund data shows 55 hedge funds out of 924 hedge funds holding stakes in NextEra Energy, Inc. (NYSE:NEE) in the fourth quarter of 2021. In the previous quarter, 53 hedge funds were long the stock. Ken Fisher’s Fisher Asset Management is the utility company’s biggest shareholder. The hedge fund firm upped its stake in NextEra Energy, Inc. (NYSE:NEE) by 4%, bringing its total holdings to over 15 million valued at $1.4 billion.
In contrast, KeyBanc analyst Sophie Karp brought up NextEra Energy, Inc. (NYSE:NEE) to Overweight from Sector Weight with an $87 price target, citing the company’s “attractive combination of a single-state utility with attractive growth prospects and a premium clean energy developer.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 91
Tesla, Inc. (NASDAQ:TSLA) is one of the world’s most popular electric vehicle manufacturers, making it one of the most-followed clean energy companies in the market. Beyond its S3XY EV lineup, Tesla, Inc. (NASDAQ:TSLA) also sells solar roofs, solar panels, and energy storage, which generated $688 million in revenue in the fourth quarter. In 2021, the company deployed 345 MW of solar energy, an increase of 68% year over year.
As the chip and supply chain bottleneck recovers, Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk expressed optimism about the increase of storage and solar production this year. Musk also reiterated Tesla, Inc.’s (NASDAQ:TSLA) plans to transition its stationary storage products to a lithium iron phosphate (LFP) pack, which would rely on iron or manganese rather than nickel.
On March 9, Piper Sandler analyst Alexander Potter kept his Overweight rating on Tesla, Inc. (NASDAQ:TSLA) with a price target of $1,350. During the fourth quarter, more hedge funds became bullish on the American EV manufacturer, and Tesla, Inc. (NASDAQ:TSLA) was held by 91 hedge funds tracked by Insider Monkey, up from 60 in the third quarter of 2021.
Alger Spectra Fund, in its Q4 2021 investor letter, mentioned Tesla, Inc. (NASDAQ:TSLA) and discussed its stance on the firm. Here’s what the fund said:
“Tesla is an electric vehicle (EV) manufacturer with a significant technology lead in its large and rapidly growing addressable market. Tesla is a consequential transportation company because it is setting the pace for industry innovation over the foreseeable future. It has potential to maintain its lead as it ramps up auto production and battery capacity. We are optimistic about EV innovation, adoption and Tesla’s growth prospects. The shares contributed to portfolio performance as Tesla successfully increased production of new model S and X units driving a richer revenue mix as the prices of these vehicles are higher and the cost to produce lower than earlier versions. Earnings estimates climbed for Tesla as pricing for vehicles in backlog has increased. Further, as Tesla’s newer, more efficient factories increase production, unit costs may potentially decline relative.”
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