5 Most Undervalued Renewable Energy Stocks To Buy According To Analysts

In this article, we discuss the 5 most undervalued renewable energy stocks to buy according to analysts. To read the detailed analysis of the renewable energy industry, go directly to the 12 Most Undervalued Renewable Energy Stocks To Buy According To Analysts.

5. Array Technologies, Inc. (NASDAQ:ARRY)

PE Ratio as of March 21: 25

Average Upside Potential as of March 21: 37.37%

Number of Hedge Fund Holders: 32

Array Technologies, Inc. (NASDAQ:ARRY) is a New Mexico-based designer and manufacturer of solar tracking systems. According to the company’s website, it has generated 194,060 MW of clean energy and has offset 17 million MT of carbon dioxide in the U.S. As of March 21, Array Technologies, Inc. (NASDAQ:ARRY) has a PE ratio of 25.

Based on 10 Wall Street analysts’ ratings over the past three months, the stock has a consensus rating of Moderate Buy. The average price target of $19.61 has an upside of 37.37% to the stock’s current price of $14.28 as of March 21.

32 hedge funds had investments in Array Technologies, Inc.’s (NASDAQ:ARRY) stock in the fourth quarter. Herbert Frazier’s Hill City Capital has increased its investments in the stock by 98% to 8.84 million shares worth over $148.517 million, representing 13.11% of the portfolio.

4. Canadian Solar Inc. (NASDAQ:CSIQ)

PE Ratio as of March 21: 3.77

Average Upside Potential as of March 21: 42.02%

Number of Hedge Fund Holders: 10

Canadian Solar Inc. (NASDAQ:CSIQ) manufactures and sells solar photovoltaic modules, provides solar energy and battery storage solutions, and is engaged in developing utility-scale solar power and battery storage projects. According to the company’s website, it has more than 118GW solar module shipments and over 3.3GWh battery storage shipments. Moreover, the company has active customers in over 160 countries.

According to our database, 10 hedge funds held stakes in Canadian Solar Inc. (NASDAQ:CSIQ) in the fourth quarter of 2023, with positions worth $40.879 million. With 714,445 shares of the company, valued at $18.74 million, D E Shaw is the most prominent shareholder of the company as of December 31, 2023.

On March 20, Canadian Solar Inc. (NASDAQ:CSIQ) announced that it entered into an agreement to purchase a solar photovoltaic project portfolio in Spain’s Andalusia region from an unnamed seller. The portfolio has 4 projects, namely Rey I, II, III, and IV, and has a capacity of over 420 megawatt peak.

As of March 21, Canadian Solar Inc. (NASDAQ:CSIQ) has a PE ratio of 3.77. Additionally, in the past three months, the stock has received Buy ratings from 2 Wall Street analysts. As of March 21, the average price target of $26.73 has an upside of 42.02% from current levels.

3. First Solar, Inc. (NASDAQ:FSLR)

PE Ratio as of March 21: 19.87

Average Upside Potential as of March 21: 43.51%

Number of Hedge Fund Holders: 47

First Solar, Inc. (NASDAQ:FSLR) is an Arizona-based company and the largest PV manufacturer in the Western Hemisphere. It is engaged in the designing, manufacturing, and selling of PV solar modules and plans on increasing its global annual manufacturing capacity to over 20 gigawatts by 2025.

First Solar, Inc. (NASDAQ:FSLR) takes the third spot on our list of the most undervalued renewable energy stocks to buy according to analysts, and has a PE ratio of 19.87 as of March 21. Additionally, 20 Wall Street analysts have covered First Solar, Inc. (NASDAQ:FSLR) in the last three months, and 16 keep a Buy rating on the stock. As of March 21, the average price target of $220.72 has an upside of 43.51% from the present levels.

In the fourth quarter, First Solar, Inc. (NASDAQ:FSLR) was part of 47 funds’ portfolios, and the total stake value was $1.106 billion. With 1.792 million shares worth $308.736 million, Samlyn Capital is the most prominent shareholder in the company as of December 31, 2023.

On February 27, First Solar, Inc. (NASDAQ:FSLR) announced its Q4 GAAP EPS of $3.25, which surpassed the estimates by $0.13. In the quarter, the revenue grew 16.0% year-over-year and amounted to $1.16 billion.

2. Ameresco, Inc. (NYSE:AMRC)

PE Ratio as of March 21: 18.01

Average Upside Potential as of March 21: 63.51%

Number of Hedge Fund Holders: 7

Ameresco, Inc. (NYSE:AMRC) is a prominent name in cleantech integration and develops, owns, and operates renewable energy assets. The company’s clean energy portfolio spans several industries, such as solar, wind, battery energy storage, and more. As of March 21, Ameresco, Inc. (NYSE:AMRC) has a TTM PE ratio of 18.01.

According to TipRanks, Ameresco, Inc. (NYSE:AMRC) has been covered by 10 Wall Street analysts over the past three months, and 8 maintain a Buy rating on the stock. The average analyst price target of $34.50 shows an upside of 63.51% from its last price of $21.10 as of March 21. 

On March 12, Exane BNP Paribas analyst Moses Sutton upgraded the rating on Ameresco, Inc.’s (NYSE:AMRC) stock to Outperform from Neutral and maintained a $34 price target.

Ameresco, Inc. (NYSE:AMRC) was held by 7 hedge funds in the fourth quarter of 2023. The total stakes of the funds amounted to $12.022 million. As of December 31, 2023, Bandera Partners is the most dominant shareholder in the company, with a position worth $5.5 million.

1. TransAlta Corporation (NYSE:TAC)

PE Ratio as of March 21: 3.73

Average Upside Potential as of March 21: 74.30%

Number of Hedge Fund Holders: 19

TransAlta Corporation (NYSE:TAC) is a Canadian company that generates and markets electricity through varied sources, including conventional and renewable ones like hydro, wind, and solar, and the company also offers battery energy storage systems. The company tops our list of most undervalued renewable energy stocks to buy and has a PE ratio of 3.73 as of March 21.

In the fourth quarter of 2023, TransAlta Corporation (NYSE:TAC) announced C$121 million in free cash flow and C$150 million for its 2024 common share repurchase program.

Over the past three months, TransAlta Corporation (NYSE:TAC) has received Buy ratings from 5 Wall Street analysts. As of March 21, the average price target of $11.19 implies an upside of 74.30% to its present levels.

In the fourth quarter of 2023, 19 hedge funds had stakes in TransAlta Corporation’s (NYSE:TAC) stock, and the total stakes of the funds amounted to $131.515 million. In Q4 of 2023, Rubric Capital Management is the top shareholder in the stock and has a position worth $42.76 million.

Should you invest $1,000 in TransAlta right now?

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