In this article, we will list the 5 Best Energy Storage Stocks to Buy According to Hedge Funds. Please visit 10 Best Energy Storage Stocks to Buy According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. The AES Corporation (NYSE:AES)
Number of Hedge Funds Holding: 52
Stock Upside: 4.17%
The AES Corporation (NYSE:AES) is one of the best energy storage stocks to buy according to hedge funds. On March 26, Argus Research analyst John Eade downgraded The AES Corporation (NYSE:AES) from Buy to Hold, citing the company’s pending acquisition agreement with a consortium of investors. This consortium is led by Global Infrastructure Partners, which intends to absorb the company at $15 per share.
Eade clarified that the downgrade is not a negative view on AES’s business, rather, he is only acknowledging that with a buyout price locked in at $15, there is limited room for the stock to move higher. As such, a Buy rating no longer makes sense from a return standpoint. He noted that the 6% gap between the current stock price and the offer price reflects the time value of money and possibly minor uncertainty over the timing of closing. Put simply, Eade conceded that the deal is not risk-free, even if the risks appear small.
The analyst noted that the transaction has been unanimously approved by AES’s Board of Directors and is expected to close in late 2026 or early 2027. This is subject to regulatory approvals, and Eade noted that few, if any, other bidders have emerged, which means the likelihood of a competing or higher offer is quite low.
On March 25, 2026, Maximo, the solar robotics company incubated by AES, announced the successful installation of 100 MW of utility‑scale solar at AES’ Bellefield complex. The milestone highlights how Maximo’s robotic fleet, supported by NVIDIA AI and AWS cloud systems, is moving from pilot validation to sustained commercial deployment. By integrating robotics into standard construction workflows, the company nearly doubled installation productivity while maintaining safety and quality, underscoring the role of AI‑driven robotics in accelerating global solar expansion.
The AES Corporation (NYSE:AES) is a global power company. It develops, owns, and operates a diversified portfolio of electricity generation and distribution assets, and its operations are increasingly focusing on renewable energy and energy storage. The company deploys utility-scale battery energy storage systems across multiple markets.
4. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Funds Holding: 54
Stock Upside: 19.50%
Generac Holdings Inc. (NYSE:GNRC) is one of the best energy storage stocks to buy according to hedge funds. On April 7, 2026, Generac Holdings Inc. (NYSE:GNRC) announced a collaboration with CPower Energy to help commercial and industrial customers in PJM, North America’s largest grid, improve resiliency and demand response as electricity demand and prices surge.
The partnership combines Generac’s equipment and dealer network with CPower’s market expertise to deploy distributed generation solutions such as battery storage, generators, and microgrids.
Through this collaboration, customers can participate in capacity, ancillary services, and on‑bill programs, creating new recurring revenue streams and energy savings. Generac emphasized that pairing multiple assets like batteries and generators enhances economic dispatch and resilience, while CPower highlighted the ability for customers to turn distributed generation into flexible energy assets that reduce costs and support the grid. This initiative reinforces Generac’s push to scale its C&I business and lead in sustainable energy solutions.
On April 1, Canaccord Genuity lifted its price target on Generac Holdings Inc. (NYSE:GNRC) from $275 to $300 and kept the Buy rating unchanged. The firm took the decision after Generac’s financial outlook presentation at its analyst and investor day.
After analyzing Generac’s presentation, Canaccord revised its earnings estimates; it raised its 2028 non-GAAP EPS estimate to $13.09 from $12.48, and now values the stock at about 23 times that estimate.
Canaccord also noted that Generac’s Q4 FY2025 earnings, which undershot expectations, heavily weighed on its decision. The company shared the earnings report on February 11 in which the $1.61 EPS was well below the $1.81 that Wall Street expected. Quarterly revenue came in at $1.09 billion, which was a 11.6% year over year decline. However, Canaccord stated that this earnings softness did not shake their conviction because Generac’s management laid out a longer-range growth picture at the investor day that appeared credible. For instance, the management expects 2028 revenue to range from $6.2 billion to $6.6 billion and EBITDA to fall into the $1.25 billion to $1.45 billion range, the firm noted.
Generac Holdings Inc. (NYSE:GNRC) manufactures power generation equipment and energy technology solutions for residential, commercial, and industrial markets. Some of these include energy storage solutions like the PWRcell platform, which allows homeowners to store electricity for use during outages or peak demand periods.
3. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Funds Holding: 64
Stock Upside: 9.69%
Bloom Energy Corporation (NYSE:BE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, Baird analyst Ben Kallo reiterated an Outperform rating and a $172 price target on Bloom Energy Corporation (NYSE:BE) following the company’s 2025 proxy filing. The filing revealed that Bloom had exceeded the high end of its annual performance targets across key financial metrics, noted Kallo.
The filing showed that Bloom posted $2.02 billion in total revenue in 2025, which is well above the $1.75 billion targeted. Non-GAAP operating income came in at $221 million, also surpassing the $180 million target, the analyst noted.
The analyst noted that the blowout 2025 results came on the back of several wins. For starters, Bloom met all three of its key strategic objectives, including hitting specified bookings in megawatts, securing large data center wins, and achieving 70% of deployable bookings to sustain forward product revenue growth. These milestones were tied to the compensation targets of its Chief Commercial Officer.
Another win, which was made possible by Bloom using C3.ai technology in a 2024 pilot program to extend its stack lifespan, was that the company achieved a 20% increase in stack lifespan against a 10% target. As a result, the company is now rolling out that improvement across its entire fleet of energy servers.
Bloom Energy Corporation (NYSE:BE) is an energy technology company. It designs and manufactures solid oxide fuel cell systems for on-site power generation. The company is also involved in the broader energy storage ecosystem through its development of hydrogen-based solutions, including electrolyzers that can produce hydrogen using excess renewable energy.
2. NextEra Energy Inc. (NYSE:NEE)
Number of Hedge Funds Holding: 72
Stock Upside: 4.07%
NextEra Energy Inc. (NYSE:NEE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, Jefferies analyst Julien Dumoulin-Smith raised his price target on NextEra Energy Inc. (NYSE:NEE) from $87 to $92 while keeping a Hold rating. The analyst cited confidence in NextEra’s long-term earnings growth trajectory and a reassessment of the stock’s valuation after a significant re-rating.
Dumoulin-Smith noted that he believes NextEra can deliver 8% or more EPS compound annual growth rate. The key near-term catalyst the analyst is watching is data center power deals, which he expects to materialize in 2026. This is consistent with an earlier note, published on January 26, in which Jefferies identified substantial power contracts related to large data centers as the primary driver for the stock in 2026.
On the data center power front, NextEra has a concrete project in motion, noted Dumoulin-Smith. The company is involved in 9.5 GW of natural gas power plant projects in Pennsylvania and Texas. These are tied to a broader $550 billion trade deal with Japan and enjoy the backing of President Trump, though Jefferies cautioned that this announcement is still in the very early stages.
However, the analyst noted the stock has re-rated to the highest utility premium on the Street, excluding Entergy (NYSE:ETR). As such, the stock is trading at a price-to-earnings ratio of 27.82, which puts it roughly 16% above its 2028 peers. This puts NextEra’s stock closer to fair value and leaves limited margin of safety for new buyers, Dumoulin-Smith concluded.
NextEra Energy Inc. (NYSE:NEE) is an electric utility and energy infrastructure company. Through its subsidiary, NextEra Energy Resources, it develops and operates utility-scale storage projects that provide energy shifting, frequency regulation, and capacity services.
1. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Funds Holding: 120
Stock Upside: 34.01%
Tesla Inc. (NASDAQ:TSLA) is one of the best energy storage stocks to buy according to hedge funds. On April 9, GLJ Research analyst Gordon Johnson reiterated a Sell rating on Tesla Inc. (NASDAQ:TSLA) and maintained his $25.28 price target.
Johnson’s main argument is that Tesla’s share price has been inflated for six years not primarily by fundamentals, but by heavy retail call buying that pushed dealers into gamma hedging. As a result, the dealers were forced to buy Tesla stock to offset their exposure, which drove stock price much higher. Analysts describe this pattern as a gamma squeeze.
In 2026, analyst Gordon Johnson argued that Tesla’s stock is no longer being boosted by retail options trading. He pointed out that the put‑to‑call ratio has barely dropped below 0.60 this year, unlike in past years when such moves often triggered gains through dealer hedging. Tesla’s call option activity has also fallen behind the broader S&P 500 every session in 2026, showing weaker investor appetite. Johnson believes this means Tesla’s valuation will now shift away from options‑driven momentum and back toward its actual business fundamentals.
Tesla Inc. (NASDAQ:TSLA) is an electric vehicle and clean energy company. It designs and manufactures battery-based energy storage systems for residential, commercial, and utility-scale applications. Its energy storage products include the Powerwall for homes, the Powerpack for commercial use, and the Megapack for large-scale grid projects, all of which store electricity for later use and support grid stability.
While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.
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