5 Cheap Solar Stocks To Buy According To Analysts

In this article, we discuss the 5 cheap solar stocks to buy according to analysts. To read the detailed analysis of the solar energy industry, go directly to the 11 Cheap Solar Stocks To Buy According To Analysts.

 5. Ameresco, Inc. (NYSE:AMRC)

Average analyst price target: $48.40

Average analyst price target upside as of November 6: 81.89%

Ameresco, Inc. (NYSE:AMRC) offers energy efficiency solutions in North America and Europe. The company provides solar power industrial solutions, integration of solar systems and kits, and solar components.

According to Insider Monkey’s database that tracks 910 elite hedge funds, 17 hedge funds had a stake in Ameresco, Inc. (NYSE:AMRC) in Q1 and Q2. While the number of hedge funds remained the same, the total hedge fund investment almost doubled as it went up to $99.968 million from $51.065 million.

On November 6, Ameresco, Inc. (NYSE:AMRC) announced its Q3 earnings result in which it reported a non-GAAP EPS of $0.40 and generated revenues of $335.15 million. For the full year 2023, the company management is looking at revenue between $1.315-$1.370 billion. The company’s gross margin outlook stands between 18.5-19%. In addition, Ameresco, Inc. (NYSE:AMRC) expects an EPS of $1.15-$1.25 and an adjusted EBITDA between the range of $160-170 million.

Ameresco, Inc. (NYSE:AMRC) was mentioned in Alger Capital’s third-quarter investor letter. Here is what it said:

“Ameresco, Inc. (NYSE:AMRC) is one of largest energy service companies in North America. The company provides design and implementation of infrastructure upgrade projects, aimed at reducing energy usage, and manages onsite operations and maintenance following the completion of projects. Energy efficiency is an underappreciated dimension of decarbonization, and Ameresco is one of the few public companies with a high degree of leverage to improve the efficiency of buildings.

Shares outperformed during the quarter after the company reported better than expected second quarter earnings which beat analysts’ estimates. Notably, year-over-year revenue growth was up 111%, driven by the second full quarter of revenue recognition from the contract to build battery systems for Southern California Edison. Moreover, we believe the clean energy company is a key beneficiary of the Inflation Reduction Act, passed into law on August 16th, which provides funding for clean energy production.”