These are the 5 Best Solar Stocks to buy in April 2024, according to Wall Street analysts. The solar energy sector is poised for massive expansion in the future as countries globally are emphasizing decarbonization. Governments worldwide are fueling the solar power sector with subsidies and funds to accelerate the energy transition, in which solar energy is going to play a crucial role. Solar stocks are considered as growth stocks with long-term potential. They are expected to outperform in times of macro stability. With this background in mind, let us look at the five best solar stocks that analysts favor and have massive share price appreciation in the next twelve months.
#1 Sunnova Energy International (NYSE:NOVA)
Houston-based Sunnova Energy International is an adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Sunnova’s solutions include solar, battery storage, energy control, and management technologies.
NOVA stock has lost 65.5% in the past year. Sunnova’s revenue rose 29.2% in Fiscal 2023, but net loss widened drastically compared to FY22 due to higher interest rates and operating expenses. Even so, Sunnova is poised for superior growth ahead with its latest strategic partnership with The Home Depot (NYSE:HD). Under the deal, Sunnova will be the sole provider of solar and battery storage services in over 2,000 Home Depot stores across the U.S. and its territories.
Sunnova is expected to release its Q1 FY24 results in late April. The Street expects Sunnova to post a diluted loss of $0.81 per share on revenue of $195.97 million.
Is Sunnova a Good Stock to Buy?
With 12 Buys and four Hold ratings, NOVA stock has a Strong Buy consensus rating on TipRanks. The average Sunnova Energy International price target of $16.29 implies 217.5% upside potential from current levels.
#2 Shoals Technologies Group (NASDAQ:SHLS)
Tennessee-based Shoals Technologies is one of America’s largest electrical balance of systems (EBOS) providers for solar, energy storage, and electric vehicle (EV) charging systems. Shoals’ components are used to carry the electric current produced by solar panels to an inverter and ultimately to the power grid.
In the past year, SHLS stock has lost 51.4%. In Fiscal 2023, Shoals’ revenues jumped 50% annually backed by higher domestic demand. Also, backlog and awarded orders, as of December 31, 2023, grew 47% compared to FY22 end.
For FY24, Shoals expects revenue to be between $480 million and $520 million, mostly in line with FY23, as the company expects a softer first half, driven by higher interest rates and project delays. Having said that, in the long run, Shoals is well positioned to grow its demand momentum and become a larger player in the EBOS market.
Is Shoals a Good Stock to Buy?
On TipRanks, SHLS stock has a Strong Buy consensus rating based on 12 Buys versus three Hold ratings. The average Shoals Technologies price target of $18.93 implies 77.6% upside potential from current levels.
#3 Altus Power (NYSE:AMPS)
Altus Power is a full-service solar company offering unique commercial, industrial, and community solar solutions. Its offerings range from on-site solar generation to community solar, energy storage, and EV charging.
In the past year, AMPS stock has lost 7.3%. In 2023, Altus Power’s revenues soared 53%, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) improved 59% from the previous year. This growth was accelerated by record customer additions and solid growth in megawatt hours sold during the year.
For Fiscal 2024, AMPS projects revenues in the range of $200 to $222 million and adjusted EBITDA of $115 to $135 million.
Is AMPS a Good Stock to Buy?
With three unanimous Buy ratings, AMPS stock commands a Strong Buy consensus rating on TipRanks. The average Altus Power price target of $7.67 implies 63.2% upside potential from current levels.
#4 First Solar, Inc. (NASDAQ:FSLR)
First Solar is one of the largest manufacturers of solar panels and thin film photovoltaic (PV) solar modules. FSLR’s panels are designed with cadmium telluride solar modules, which offer high efficiency at a lower cost compared to traditional PV panels. The company is targeting an annual manufacturing capacity of over 20 gigawatts (GW) across the U.S., India, Malaysia, and Vietnam by 2025.
FSLR stock has lost nearly 15% in the past year. In FY23, First Solar reported a 26.7% increase in revenues for 2023, and earnings per share (EPS) of $7.74 compared to a loss of $0.41 per share in FY22. For Fiscal 2024, FSLR forecasts revenue between $4.4 billion and $4.6 billion and EPS in the range of $13 to $14, showing massive growth potential.
Is FSLR a Good Investment?
FSLR stock commands a Strong Buy consensus rating on TipRanks, backed by 16 Buys and four Hold ratings. The average First Solar price target of $220.72 implies 28.7% upside potential from current levels.
#5 NEXTracker, Inc. (NASDAQ:NXT)
NEXTracker manufactures intelligent, integrated solar trackers and software solutions for utility-scale and distributed generation solar projects around the world. NXT’s products enable solar panels to follow the sun’s movement across the sky and optimize plant performance. To date, NEXTracker has shipped over 90 GW globally, leading the space with its differentiated technology.
Since its initial listing on February 9, 2023, NXT stock has gained 65.7%. In its latest results for Q3 FY24, NXT’s revenue rose 38% year-over-year, while adjusted EBITDA skyrocketed 168%. Moreover, NXT lifted the full-year Fiscal 2024 revenue guidance to be between $2.425 and $2.475 billion and adjusted EBITDA in the range of $475 million to $500 million.
Is NEXTracker a Good Stock to Buy?
On TipRanks, NXT stock has a Strong Buy consensus rating based on 17 Buys and three Hold ratings. The average NEXTracker price target of $63.32 implies 25.4% upside potential from current levels.
Ending Thoughts
As per stats from Allied Market Research, the global solar energy market is projected to reach a staggering $300.3 billion by 2032, growing at a CAGR of 12.3% from 2023. Investors eager to participate in this massive growth industry could consider these five best solar stocks to boost their portfolio returns.
