In this article, we will take a look at the 5 most promising clean energy stocks according to analysts. To see more such companies, go directly to 11 Most Promising Clean Energy Stocks According to Analysts.
5. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 39
One-Year Average Price Estimate: $41.50
California-based Sunrun Inc. (NASDAQ:RUN) makes photovoltaic systems and battery energy storage products. Sunrun Inc. (NASDAQ:RUN) ranks 5th in our list of the most promising clean energy stocks according to analysts.
In February, Sunrun Inc. (NASDAQ:RUN) posted a strong Q4 earnings report. GAAP EPS in the period came in at $0.29, beating estimates by $0.56. Revenue in the period increased by about 40% on a YoY basis to reach $609.52 million, beating estimates by $20.63 million.
At the end of the fourth quarter of 2022, 39 hedge funds tracked by Insider Monkey had stakes in Sunrun Inc. (NASDAQ:RUN). The biggest hedge fund stakeholder of Sunrun Inc. (NASDAQ:RUN) was William B. Gray’s Orbis Investment Management with a $293 million stake.
4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 43
One-Year Average Price Estimate: $366
Israeli solar technology company SolarEdge Technologies, Inc. (NASDAQ:SEDG) ranks 4th in our list of the most promising clean energy stocks according to analysts. SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of the top picks in the solar sector by a team of analysts at Citi earlier this month.
Hedge funds also like SolarEdge Technologies, Inc. (NASDAQ:SEDG). Insider Monkey’s proprietary database of 943 hedge funds shows that 43 funds had stakes in SolarEdge Technologies, Inc. (NASDAQ:SEDG) as of the end of the fourth quarter of 2022. The net worth of these hedge funds’ stakes was $1.3 billion. The biggest stakeholder of SolarEdge Technologies, Inc. (NASDAQ:SEDG) was Richard Mashaal’s Rima Senvest Management which has a $215 million stake in the company.
3. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 59
One-Year Average Price Estimate: $95.06
General Electric (NYSE:GE) has significant clean and renewable energy operations which makes it one of the most promising stocks in our list. General Electric (NYSE:GE) is combining its power and renewable energy business under the umbrella of GE Vernova.
Earlier this month, BofA analyst Andrew Obin said that General Electric (NYSE:GE)’s profit will rise more than expected amid the rising demand of jet engines. The analyst also praised General Electric (NYSE:GE)’s plans to improve its Vernova business. Obin said that he was “pleasantly surprised by the detailed plans for the Vernova turnaround.”
At the end of the fourth quarter of 2022, 59 hedge funds tracked by Insider Monkey reported owning stakes in General Electric (NYSE:GE).
Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q4 2022 investor letter:
“General Electric Company (NYSE:GE) recently spun off its health care businesses, General Electric HealthCare Technologies, which has leading market share positions in medical imaging products including MRI devices and CT scanners. General Electric’s remaining businesses include Aerospace and its Power and Renewables business. Aerospace is performing well and comprises the bulk of General Electric’s value in our opinion. We believe that the spin-off of General Electric HealthCare Technologies has highlighted the value of General Electric’s remaining business units. General Electric intends to spin out its Power and Renewables business unit early in 2024.”
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 63
One-Year Average Price Estimate: $300
Fremont, California-based Enphase Energy, Inc. (NASDAQ:ENPH) makes solar micro-inverters, battery energy storage, and EV charging stations. Enphase Energy, Inc. (NASDAQ:ENPH) was trading at around $200 as of March 16, while its one-year average price estimate is $300. This shows a massive upside potential from the current levels.
Earlier this month, Citi counted Enphase Energy, Inc. (NASDAQ:ENPH) among its top picks in the solar sector. The firm said in a note to investors that Enphase Energy, Inc. (NASDAQ:ENPH) is “laser focused” on customer satisfaction and is ahead of the curve when it comes to innovation. Citi also likes Enphase’s capital allocation and operating strategy.
As of the end of the fourth quarter of 2022, 63 hedge funds had stakes in Enphase Energy, Inc. (NASDAQ:ENPH). The total value of these stakes was $2.2 billion.
ClearBridge Investments made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:
“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 91
One-Year Average Price Estimate: $196
With a dominant position in the EV industry, solar and other clean energy solutions for home consumers, Tesla, Inc. (NASDAQ:TSLA) is one of the best clean energy stocks to buy. Tesla, Inc. (NASDAQ:TSLA)’s one-year average price target is $196, according to Yahoo Finance. But according to CNN Business, the average price target for Tesla, Inc. (NASDAQ:TSLA) based on estimates of 36 analysts is $210. Cathie Wood, who has a $570 million stake in Tesla, Inc. (NASDAQ:TSLA), believes Tesla stock could reach $500 by 2026.
As of the end of the fourth quarter of 2022, 91 hedge funds out of the 943 funds tracked by Insider Monkey reported owning stakes in Tesla, Inc. (NASDAQ:TSLA), up from 88 hedge funds in the previous quarter.
ClearBridge Large Cap Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA), meanwhile, also fits squarely within our earnings reset group. We took advantage of its enterprise multiple falling back to historic lows to initiate a starter position in the leading manufacturer of electric vehicles (EV) and developer of battery technologies. Tesla has a significant structural cost advantage in battery production, EV manufacturing and EV selling, which gives it industry-leading operating margins in EVs. As the auto cycle has softened, the stock has sold off substantially with the rest of the automakers, despite EVs continuing to have a secular growth advantage. Tesla has a clean balance sheet with negative net debt and enormous revenue growth, EBITDA growth and free cash flow generation. Its margin buffer also gives the company the ability to cut prices while still protecting earnings better than competitors, which should help support continued volume growth. There is also significant upside optionality driven by its software offerings, which we do not believe is currently priced into the stock.
That being said, Tesla is highly indexed to a flagging auto market and we expect its earnings outlook to worsen in the near term. We are also monitoring increasing EV competition and the recently emerging risks to the brand and management integrity raised by CEO Elon Musk’s actions at Twitter to determine future position size in the portfolio.”
You can also take a peek at 15 Most Promising Dividend Stocks According to Analysts and 15 Most Promising Long-Term Stocks.
