5 Small Company Stocks You Should Own Now for the Next Decade

In this article, we discuss 5 small company stocks you should own now for the next decade. If you want to read about some more stocks, go directly to 15 Small Company Stocks You Should Own Now for the Next Decade.

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

Number of Hedge Fund Holders: 26

Sunnova Energy International Inc. (NYSE:NOVA) is a Houston, Texas-based solar company.

The company has a favorable long-term outlook following the Inflation Reduction Act. Mark Strouse at JPMorgan echoed these sentiments. The analyst increased the price target on Sunnova Energy International Inc. (NYSE:NOVA) from $43 to $54 and maintained an Overweight rating on the stock on August 8. Strouse thinks that the IRA is the biggest policy change in the history of the US and will aid in the transition to renewable energy. The analyst added that companies with local manufacturing facilities would immediately benefit from the bill. Observers see Sunnova Energy International Inc. (NYSE:NOVA) as the best-positioned solar company in the residential segment.

Here’s what ClearBridge Investments said about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:

“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”

Of the 912 hedge funds in Insider Monkey’s database, 26 funds held a stake in Sunnova Energy International Inc. (NYSE:NOVA) as of Q1 2022.