5 Small Cap Stocks With Wide Moats

3. Stem Inc. (NYSE:STEM)

Number of Hedge Fund Holders: 27

Market Capitalization as of December 27: $1.37 billion

Stem Inc. (NYSE:STEM) is an electrical components and equipment company based in San Francisco, California. It operates as a digitally connected and intelligent energy storage network provider in the US and internationally.

UBS analyst Jon Windham initiated coverage of Stem Inc. (NYSE:STEM) shares on October 25 with a Buy rating.

In the electric storage industry, Stem Inc. (NYSE:STEM) is a company with a strong strategy to continue winning market share and assert its dominance. The company invested over $8 million in software development in the first half of 2022, allowing it to continue being a leader in the electric storage technology area. This December, Stem Inc. (NYSE:STEM) confirmed its 2025 financial targets, including a gross margin of 25% to 30% and an adjusted EBITDA margin between 15% and 20%.

Our hedge fund data shows 27 funds long Stem Inc. (NYSE:STEM) in the third quarter, with a total stake value of $199 million.

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