In this article, we take a look at the 13 best solar energy stocks to invest in through 2024. If you want to skip our introduction to the solar sector, check out the 5 best solar energy stocks to invest in. Until 2024
Disruptions to global energy markets in 2022 have also affected global plans to transition to renewable energy and reduce carbon emissions. Before the crude oil price crisis hit the world, coal-fired power plants were shuttered and investments in new oil production facilities were viewed with skepticism. As prices rose, arguments gained strength that the only way to ensure stable oil prices was to invest in more oil production capacity.
This trend has been particularly strong in the United States, where oil production is greater than that of Saudi Arabia. US oil production was 11.9 million barrels per day in 2022, and the Energy Information Administration (EIA) forecasts that production could reach 12.8 million barrels per day in 2023, a new record historical.
However, another key reason for weakening interest in renewables in 2022 was the strong investment environment, which was constrained as investors adjusted their perception of Federal Reserve funding amid the aforementioned record inflation. . 2023 is very different because, although fears of inflation still exist, the situation is not as dramatic as last year. Meanwhile, the US economy continues to grow and offers hope for a soft landing that will finally end fears of a possible recession.
A change in the overall investment climate bodes well for the solar and renewable energy sectors in general. Global renewable energy investment has already hit a new record in 2023, with record inflows in the first half of the calendar year, according to data from BloombergNEF. Details show that global investment in renewable energy reached $358 billion in the six months to June 2023, a sharp year-on-year increase of 22%. This growth is due to an increase in venture capital funding for renewable energy companies. Capital commitments rose to $10.4 billion, outpacing growth in broader investments thanks to 25% year-over-year growth.
This undeniable investor optimism was fueled by global solar investment, as solar investment not only continued to account for the majority of total renewable energy investment, but also boosted the overall growth rate. In fact, $239 billion in investments in large and small solar systems not only represents two-thirds of total renewable energy investment, but its staggering 43% growth rate was also nearly double that of all sectors. . Regionally, investment in solar and renewable energy was highest in China, followed by the United States in second place. According to our roundup of the 20 countries that produce the most coal, China is also the world's largest coal producer. Therefore, there is great potential for the Asian economic giant to use power generation and infrastructure to abandon coal in favor of sustainable and environmentally friendly solar energy. Generation.
At this point, you may be wondering how solar energy reserves are faring, since solar projects have been funded on a large scale. Well, one way to look at it is to look at the prices of solar stocks that hedge funds invested in during the first quarter of 2023. The top five solar and battery stocks that hedge funds invested in during the Q1 2023 were Tesla, Inc. (NASDAQ:TSLA), Enphase Energy, Inc. (NASDAQ:ENPH), and SolarEdge Technologies, Inc. (NASDAQ). SEDG), Albemarle Corporation (NYSE: ALB) and First Solar, Inc. (NASDAQ: FSLR). The evolution of its share price at the beginning of October 2023 was +139.47%, -50.82%, -57.73%, -20.37% and 2.36%. Among these companies, Albemarle is one of the leading solar companies because, although it does not produce solar panels, it does produce lithium and other materials used to make batteries.
The weakness of the five largest solar and battery hedge funds is also reflected in the MAC Global Solar Stock Index. That figure is a benchmark for the Invesco Solar ETF (NYSE:TAN), a $1.47 billion exchange-traded fund that invests in leading stocks of clean solar energy companies. The benchmark index fell 31.99% and the corresponding ETF fell 32.10%. However, a closer look at the annual and multi-year terms of the Solar Stock ETF suggests that investing in solar stocks could be a better long-term solution. In fact, the five-year average annual return of the Invesco Solar ETF (NYSE:TAN) is 21.95%, while in 2013, 2017 and 2019 it recorded a total annual return of 127.9%, 54.5% and 66.5%, respectively. In fact, the ETF also posted surprising returns in 2020, only to end up in the red for the next two years.
Therefore, investments in solar energy are increasing, but supply is decreasing. With this in mind, we decided to take a look at the top solar energy stocks for 2024. The top three stocks on this list are Enphase Energy, Inc. (NASDAQ:ENPH) and SolarEdge Technologies, Inc. (NASDAQ:SEDG). ) and First Solar, Inc. (NASDAQ:FSLR).
Solar panel workers build a new farm to produce clean energy. Editorial photography for a financial news article. 8 thousand. - Acts 16:9
Our methodology
To compile our list of the best solar energy stocks to invest in, we took the top 20 US-traded stocks in the Invesco Solar ETF (NYSE:TAN) and ranked them by number of hedge fund holdings. Stocks in June 2023 using data from Insider Monkey's database of 910 hedge funds. From there, the 13 stocks with the most hedge funds were selected as the best stocks to invest in solar energy.
13. SunPower Corporation (NASDAQ:SPWR)
The number of hedge fund investors in the second quarter of 2023: 17
SunPower Corporation (NASDAQ: SPWR) is an American solar company that sells solar-powered appliances in the United States and Canada. The company's shares rose 10% between October 10 and 13.
As of June 2023, 17 of the 910 hedge funds in Insider Monkey's database owned shares of SunPower Corporation (NASDAQ: SPWR). The company's largest shareholder is Israel Englander's Millennium Management, owning 2.4 million shares worth $23.6 million.
In addition to SolarEdge Technologies, Inc. (NASDAQ: SEDG), Enphase Energy, Inc. (NASDAQ: ENPH), and First Solar, Inc. (NASDAQ: FSLR), SunPower Corporation (NASDAQ: SPWR) is a solar energy company. one of the main titles. invest. In
12. Atlantica Sustainable Infrastructure plc (NASDAQ: AY)
The number of hedge fund investors in the second quarter of 2023: 18
Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is a UK global energy company with a renewable energy division. Nearly half of the company's shares are owned by institutional investors, making the company's prospects secure, but also posing the risk of significant price fluctuations.
In the second quarter of 2023, 18 of the 910 hedge funds surveyed by Insider Monkey held shares of the company. The largest investor in hedge fund Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is Israel Englander's Millennium Management, with a stake of $41.3 million.
11. Altus Power, Inc. (NYSE:AMPS)
Number of hedge fund investors in Q2 2023: 19
Altus Power, Inc. (NYSE: AMPS) is a small utility that operates solar power generation systems for residential and industrial users. The company received praise from investment bank Morgan Stanley in August when the bank said Altus Power, Inc.'s (NYSE:AMPS) potential to target the community solar power generation segment was not reflected in its stock price.
At the end of the second quarter of this year, 19 of the 910 hedge funds surveyed by Insider Monkey were investors in Altus Power, Inc. (NYSE:AMPS).
10. Sunnova Energy International Inc. (NYSE: NOVA)
Number of hedge fund investors in Q2 2023: 19
Sunnova Energy International Inc. (NYSE:NOVA) is an American company with more than one thousand megawatts of solar power generation capacity in its portfolio. The company's investors received bad news in October when Truist downgraded the stock from Hold and lowered its price target to $11 from $35 previously.
As of the June 2023 quarter, 19 of the 910 hedge funds surveyed by Insider Monkey had taken a stake in the company. Of these, Ken Griffin's Citadel Investment Group owns the largest stake in Sunnova Energy International Inc. (NYSE: NOVA) with $27.2 million.
9. Maxeon Solar Technologies, Ltd.
The number of hedge fund investors in the second quarter of 2023: 20
Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN) is a Singapore-based solar energy equipment company that manufactures and sells solar panels. The company has surpassed analysts' EPS estimates in three of the last four quarters and the stock has an Average Buy rating.
After analyzing 910 hedge fund stocks for investments in the second quarter of 2023, Insider Monkey found that 20 of them are in Maxeon Solar Technologies, Ltd. had invested. Ben Levin, Andrew Manuel and Stefan Renold's LMR Partners are the largest shareholders, with shares worth $52.4 million.
8. Daqo New Energy Corp.
The number of hedge fund investors in the second quarter of 2023: 22
Daqo New Energy Corp. (NYSE: DQ) is a Chinese semiconductor manufacturer that supplies products to solar panel manufacturers. The company noted that China's economic slowdown had a significant impact on its earnings, missing analysts' earnings per share estimates for the past four quarters.
In the second quarter of this year, 22 of the 910 hedge funds surveyed by Insider Monkey bought and held shares of the company. (NYSE: DQ) The hedge fund's largest investor is Lei Zhang's Hillhouse Capital Management, thanks to its $80.8 million stake in 2 million shares.
7. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
The number of hedge fund investors in the second quarter of 2023: 24
Shoals Technologies Group, Inc. (NASDAQ: SHLS) is a solar hardware company that sells products for charging batteries and monitoring solar power generation systems. Goldman Sachs set a $28 price target and a Buy rating on the stock in October 2023, citing strong fundamentals in the U.S. solar services sector.
As of June 2023, 24 of the 910 hedge funds surveyed by Insider Monkey held shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS). Todd J. Kantor's Encompass Capital Advisors is the largest shareholder with an investment of $104.9 million.
6. Sunrun Inc. (NASDAQ:RUN)
The number of hedge fund investors in the second quarter of 2023: 24
Sunrun Inc. (NASDAQ: RUN) is a solar energy equipment company that sells solar panels and energy storage systems. Research and investment firm Truist sounded the alarm on its stock in October, saying Sunrun Inc. (NASDAQ: RUN) could struggle to generate cash in the future in a difficult interest rate environment. As a result, Truist lowered its price target on the company's shares from $30 to $12 and lowered its rating to "Hold."
Of the 910 hedge funds surveyed by Insider Monkey for investments in Q2 2023, 24 were investors in Sunrun Inc. (NASDAQ:RUN). William B. owns the largest interest. Gray's Orbis Investment Management: $249 million.
Enphase Energy, Inc. (NASDAQ: ENPH), Sunrun Inc. (NASDAQ: RUN), SolarEdge Technologies, Inc. (NASDAQ: SEDG), and First Solar, Inc. (NASDAQ: FSLR) Are Among Top Solar Energy Stocks . Energy from a hedge fund. Selection
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Epiphany. No one. The 13 Best Solar Stocks Through 2024 was originally published by Insider Monkey.
