8. First Solar, Inc. (NASDAQ:FSLR)
Upside Potential: 29.75%
Number of Hedge Fund Holders: 64
Market Capitalization: $21.04 billion
First Solar, Inc. (NASDAQ:FSLR) has direct exposure to the economics of domestic solar manufacturing. Its fully integrated production model makes federal manufacturing credits a substantial part of earnings, giving investors a clear reason to follow the policy outlook. The company’s 2026 gross-profit guidance of $2.40 billion–$2.60 billion includes $2.07 billion–$2.19 billion of Section 45X manufacturing credits. The durability of that support therefore matters alongside factory utilization, selling prices, and customer demand.
The third-quarter results illustrate how those factors interact. Revenue declined 23% year over year to $1.23 billion as the volume of modules sold to outside customers fell. Gross margin nevertheless increased to 57.9% from 38.3%, helped by higher realized prices and a larger volume of credit-eligible modules. Diluted earnings per share rose 25% to $5.30. The results show why shipment volume alone offers an incomplete picture of the company’s earnings trajectory.
First Solar ended the quarter with 44 gigawatts of contracted sales, providing visibility into future demand. Management reduced its 2026 revenue forecast to $4.6 billion–$4.9 billion from $4.9 billion–$5.2 billion, reflecting lower expected module sales volumes, including reduced sales into India’s domestic market. Pricing and demand in each market will shape how much of its expanded manufacturing capacity translates into profitable sales. Our analysis of First Solar’s challenge of converting backlog into cash examines the importance of contract terms and execution as the company expands domestic capacity.
William Blair’s upgrade to Outperform adds support to the constructive analyst outlook. The median target of $254 implies 29.75% upside, and First Solar had the largest Q2 2026 hedge fund following among these ten companies, with 64 holders. Sustaining that interest will depend on converting contracted demand into profitable shipments while managing the substantial role that policy incentives play in reported margins.
7. Ormat Technologies, Inc. (NYSE:ORA)
Upside Potential: 32.29%
Number of Hedge Fund Holders: 32
Market Capitalization: $5.72 billion
Ormat Technologies, Inc. (NYSE:ORA) combines geothermal power generation with an expanding battery-storage business. Geothermal plants can supply electricity around the clock, making them useful to customers seeking dependable renewable power. Batteries add a different source of revenue by shifting electricity between periods of low and high demand. Our discussion of Ormat’s stable cash flows and growing storage business examines how that combination supports its development plans.
Storage drove much of the improvement in the third quarter of 2026. Segment revenue increased 145% year over year to $49.9 million as new facilities entered service and market conditions supported existing assets. Net income attributable to shareholders rose 32% to $31.9 million. The results demonstrate how incremental storage capacity can contribute to earnings, although favorable wholesale electricity prices also helped the comparison.
Contract structure matters when judging how much of that growth can recur. Ormat’s planned 100-megawatt Denali battery has a 20-year tolling agreement that gives the customer access to capacity and provides greater revenue visibility for Ormat. Projects earning more of their income from wholesale markets face a different risk profile because charging and discharging margins fluctuate. The balance between contracted payments and market revenue will influence how predictable the storage business becomes as it grows.
Geothermal development provides another opportunity. Ormat identified potential for 5 to 6 gigawatts of enhanced geothermal capacity on its land, while commercial terms and drilling at Dixie Valley remained to be established. That resource potential requires successful development before it contributes to cash flow. Morgan Stanley initiated coverage at Overweight with a $123 target, highlighting cash generation from the existing fleet. The same median target implies 32.29% upside in our screen. With 32 Q2 hedge fund holders, investors have an established operating business from which to assess the expansion.
6. SOLV Energy, Inc. (NASDAQ:MWH)
Upside Potential: 46.94%
Number of Hedge Fund Holders: 44
Market Capitalization: $4.82 billion
SOLV Energy, Inc. (NASDAQ:MWH) builds and services utility-scale solar, battery-storage, and related power infrastructure. That places it close to the construction decisions influenced by project incentives and permitting. Developers need a contractor that can coordinate site preparation, equipment installation, and grid-related work. These integrated capabilities support SOLV Energy’s expansion across utility-scale solar and storage projects and give customers fewer construction interfaces to manage.
The roughly $45 million acquisition of ASB Energy Services supports that approach. ASB constructs substation foundations and battery-storage infrastructure, bringing specialized work in-house. Greater control over those activities could help SOLV manage schedules and reduce dependence on outside contractors. The financial benefit will depend on how effectively it integrates the acquired operations and uses the additional capacity across its project portfolio.
Second-quarter 2026 revenue increased 77% year over year to $951 million, supported by construction activity and acquisitions. Backlog reached $8.9 billion, up 44%, and management raised its full-year revenue forecast to $3.87 billion–$3.97 billion. SOLV also had more than 23 gigawatts under operations-and-maintenance contracts. Those service relationships extend its involvement beyond initial construction and create opportunities to remain with customers as completed projects age or require additional work.
Profitability deserves attention alongside the scale of the order book. Adjusted EBITDA margin fell to 12.4% from 16.1%, with the prior-year comparison benefiting from unusually favorable repair and development-related sales. Investors should watch the margin earned as new backlog moves into construction, particularly where labor and procurement requirements are substantial. The median analyst target of $35 implies 46.94% upside, supported by a Strong Buy consensus. Forty-four hedge funds held the stock in Q2. Turning that backlog into consistent earnings would strengthen the case for the company’s broader infrastructure expansion.
5. Ameresco, Inc. (NYSE:AMRC)
Upside Potential: 103.66%
Number of Hedge Fund Holders: 17
Market Capitalization: $1.02 billion
Ameresco, Inc. (NYSE:AMRC) develops energy infrastructure that helps customers reduce electricity costs and keep essential facilities operating during outages. Its combination of efficiency projects, renewable generation, and battery storage gives it several routes into a customer’s capital budget. Public funding can make a substantial difference. At an Oregon sanitation authority, a state grant supplied $870,870 of a $1 million solar-and-storage project designed to offset the main office’s annual electricity consumption. The installation also provides backup power, making reliability part of the economic case.
The larger opportunity is Ameresco’s expanding pipeline of data-center power projects. Second-quarter 2026 backlog reached $6.73 billion, although the composition deserves attention. Fully contracted work accounted for $2.30 billion, while $4.42 billion represented awards still moving through contracting. Five data-center projects were among those awards. Those customers broaden Ameresco’s market beyond public agencies and municipalities, but their spending decisions must become binding commitments before shareholders can treat the entire pipeline as dependable revenue.
Revenue increased 9% to $515.5 million in the quarter, while adjusted EBITDA rose 12% to $62.8 million. That supports the case for improving operating scale. However, higher full-year adjusted earnings-per-share guidance also incorporated an expected change in accounting for transferable tax credits. Contract conversion and project cash receipts therefore provide useful checks on the reported earnings improvement. A larger backlog creates more opportunity, while the funding required to deliver it determines how much value ultimately reaches shareholders.
The $39 median analyst target implies 103.66% upside in our screen. Ameresco’s appeal rests on converting a growing project pipeline into profitable construction and recurring energy revenue. Sustained progress on that conversion would give the analyst optimism a firmer operating foundation. Insider Monkey’s Q2 2026 database showed 17 hedge fund holders.
