5 Cheap Solar Stocks to Buy

In this article, we discuss the 5 cheap solar stocks to buy. If you want to read the renewable and solar industry analysis, go directly to 10 Cheap Solar Stocks To Buy.

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

Number of Hedge Fund Holders: 25

Sunnova Energy International Inc. (NYSE:NOVA) is a Texas-based renewable energy company. Its products include solar power systems, battery energy storage systems, EV chargers, and generators. As of December 19, Sunnova Energy International Inc. (NYSE:NOVA) is a cheap solar stock that is trading at a PE ratio of 19.02, the lowest since June 2019.

On December 15, Citi analyst Ryan Levine assumed coverage of Sunnova Energy International Inc. (NYSE:NOVA) with a Buy rating and a $26 price target. According to the analyst, the company is well-positioned to take advantage of rising utility bills and the Inflation Reduction Act. In addition, Sunnova Energy International Inc. (NYSE:NOVA)’s risk/reward tradeoff seems positive. 

Sunnova Energy International Inc. (NYSE:NOVA)’s hedge fund sentiment remained the same during the third and fourth quarters. However, hedge funds seem to be bullish on the stock as they added substantial additional holdings to their portfolio. In the third quarter, 25 hedge funds had a stake worth $294.403 million, compared to a combined stake of $171 million in the second quarter. Moore Global Investments increased its holdings in the stock by 140% in the third quarter and was the largest stakeholder in the company with 2.7 million shares, worth $60.538 million.

Here is what ClearBridge Investments had to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q3 2022 investor letter:

“Within the utilities sector, solar power and energy storage company Sunnova (NYSE:NOVA) saw its share price benefit from passage of the Inflation Reduction Act legislation, which includes an array of new and extended tax credits that should not only support but enhance the company’s long-term growth prospects.”