5 Best Renewable Energy Stocks to Buy and Hold for the Next 10 Years

4. Sunnova Energy International Inc. (NYSE:NOVA)

Number of Hedge Fund Holders: 25

Sunnova Energy International Inc. (NYSE:NOVA) is a Texas-based company that provides residential solar energy systems in the United States. On August 17, Sunnova Energy International Inc. (NYSE:NOVA) priced a $500 million aggregate principal amount of 2.625% convertible senior notes due 2028 in a private placement. The net proceeds from the upsized offering are estimated to be $487 million. The sale of the notes closed on August 19. 

On August 4, Barclays analyst Christine Cho initiated coverage of Sunnova Energy International Inc. (NYSE:NOVA) with an ‘Overweight’ rating and a $35 price target. The analyst has a Positive view of the North American clean technology space. Within residential solar, she sees Sunnova Energy International Inc. (NYSE:NOVA) as one of the best positioned firms. The case for solar is “as attractive as it’s ever been and this secular growth trend will continue,” the analyst told investors. She said the Inflation Reduction Act of 2022 “provides tailwinds after several setbacks” for the sector.

According to Insider Monkey’s Q2 data, Sunnova Energy International Inc. (NYSE:NOVA) was part of 25 hedge funds’ portfolios, compared to 26 funds in the prior quarter. Electron Capital Partners is a prominent shareholder of the company, with more than 3 million shares worth $56.5 million. 

Here is what the Clearbridge Investments Small Cap Strategy had to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:

“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”