5 Best Clean Energy Stocks to Invest In

In this article, we shall discuss the 5 best clean energy stocks to invest in. To read our detailed analysis of the clean energy sector in 2022, go directly and see 14 Best Clean Energy Stocks to Invest In.

5. Sunrun Inc. (NASDAQ:RUN)

Number of Hedge Fund Holdings: 31

Based in San Francisco, California, Sunrun Inc. (NASDAQ:RUN) is an American company which specializes in the production and development of photovoltaic solar energy generation systems and battery energy storage products, and is one of the best clean energy stocks to invest in. The company beat EPS estimates by $0.07 in Q2 2022, posting an EPS actual of -$0.06 against consensus -$0.13.

On August 18, Morgan Stanley analyst Stephen Byrd raised the price target on Sunrun Inc. (NASDAQ:RUN) shares to $79 from $70, keeping an Overweight rating on the shares.

Here is what Horizon Kinetics had to say about Sunrun Inc. (NASDAQ:RUN) in their Q2 2021 investor letter:

“What this table did not cover is valuation. What’s expensive, what’s cheap? A good business that is too expensive is not a good investment. The most expensive business in the table is Sunrun. Sunrun is the nation’s largest residential rooftop solar panel system seller/installer. Sunrun’s valuation might also shed Thumbnail valuation.

To start at the top of the income statement, Sunrun shares trade at 10.3x revenues. The most profitable company in the S&P 500, Microsoft, trades at 13x revenues. Sunrun operates at a loss. Obviously, not only is tremendous growth anticipated, but tremendous profitability, too.

Let’s simply accept that investors have correctly anticipated Sunrun’s future success and make that the starting point for a valuation exercise.

If, 10 years from now, Sunrun is ultimately valued at 25x net income, and if today’s $9.5 billion valuation is appropriate, that would require $380 million of net income ($9,500 million ÷ 25).

Let’s say Sunrun will have the same net profit margin as the average S&P 500 company, which is 10%. That means it would need $3,800 million of sales to generate that level of earnings”… Click Here to Continue Reading