Given the economic conditions and with oil majors merging, it is probably a good time to look at solid alternatives in the market. Important, while pure oil players have gone, it is opportune to look at mixed companies that benefit from peaking demand while the demand for clean energy technologies such as hydrogen and alternative products is on the rise. Here is our take:
Sunrun Inc., ticker RUN, is a California-based residential service provider of solar, storage, and energy services. The company has around 800,000 customers and offers its services in 22 U.S. states and Puerto Rico. Run is one of the best-undervalued energy stocks to buy according to analysts as 15 out of 20 Wall Street analysts keep a Buy rating on the stock with an average price target of $27.65.
Out of the 910 elite hedge funds tracked by Insider Monkey, 24 had a stake in Sunrun Inc. – William B. Gray’s Orbis Investment Management was the most significant stakeholder in Q2 of Sunrun Inc. as the hedge fund increased its investment in the stock by 7% to 13.997 million shares worth $249.99 million.
Plug Power Inc., ticker PLUG, is a New York-based electrical equipment company that offers hydrogen fuel cell turnkey solutions and deals with industrial mobility applications. It serves the North American and European material markets and its customers include refineries, producers of chemicals, steel, fertilizer, and commercial refueling stations.
Plug Power Inc., one of the best-undervalued energy stocks, announced that it would be supplying a 280 MW (megawatt) proton exchange membrane (PEM) electrolyzers system to Arcadia eFuels for its Vordingborg plant, strengthening its position as the supplier of green hydrogen solutions in the hydrocarbon fuel industry.
PLUG reported that it had entered into a Memorandum of Understanding (MOU) with Fortescue Metals Group Limited; under the contract, the two companies will look into supplying equipment, including 550 MW electrolyzers, to Fortescue’s green hydrogen production projects in North America. Moreover, under the MoU, Plug Power Inc. and Fortescue Metals Group Limited will potentially partner up for additional large-scale projects globally.
Shoals Technologies Group, Inc., ticker SHLS, is one of the best-undervalued energy stocks. Shoals is a Portland-based energy equipment company that manufactures and distributes the electrical balance of system solutions and parts for solar, battery storage, and EV charging systems.
Goldman Sachs analyst Brian Lee upgraded Shoals Technologies Group, Inc. stock to Buy from Neutral, with a price target of $28. The firm believes that the company has an attractive valuation and a healthy gross margin upside potential.
Out of the 24 hedge funds that owned SHLS stocks in Q2, Todd J. Kantor’s Encompass Capital Advisors held the largest stake in the company with over 4.1 million shares worth more than $$104.9 million.
Fluence Energy, Inc. ticker FLNC is a provider of cloud-based software for renewable energy and its storage along with energy storage products and related services. The company offers its services in the US, Australia, the Philippines, Singapore, and Germany.
In the second quarter, the number of hedge funds with a stake in Fluence Energy, Inc. increased to 19 at a combined stake value of $146.773 million from 13 in the previous quarter with a stake worth $122.270 million.
On August 31, Fluence Energy, Inc. announced that its subsidiary, Fluence Energy UK Ltd. will be providing a battery-based energy storage project to Statkraft. While this will mark FLNC’s third project in collaboration with Statkraft across the U.K. and Ireland’s markets, the company has completed 27 projects in total across these markets over the years.
Bloom Energy Corporation, ticker BE, focuses on manufacturing and installing solid-oxide fuel cells for on-site power generation. The company’s fuel cells convert hydrogen-containing fuels to electricity. Bloom’s technology is fairly new but is expected to grow quite significantly as the solid oxide fuels cell market size is expected to grow at a CAGR of 41.5% between 2023 and 2030, according to Grand View Research.