In the sustainable investing realm, solar stocks stand out as a compelling investment choice. But first you must carefully consider both the opportunities and risks. This year was a tough year for the solar industry, as companies battled with slower growth, higher interest rates and supply chain disruptions.
However, with the commercial and residential solar market seeing unprecedented growth, 2024 presents an opportunity for environmentally conscious investors to get rich. According to Fortune Business Insights, the solar power market will reach $373.84 billion by 2029, growing at a 6.9% CAGR rate. As demand for renewable energy accelerates, now is a great time to consider the best solar stocks to buy.
Now, let’s discuss the 3 best solar stocks offering hidden value for 2024!
Solar Stocks: NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is an American energy company headquartered in Juno Beach, Florida. They are one of the largest energy companies in the world with more than 60 GWh of generating capacity.
Investors that are seeking to benefit from the upside of the solar energy industry cannot ignore the elephant in the room. NextEra energy remains a titan in the solar industry and continues to execute on their long term strategy. During Q3 2023, the company added 3,245 megawatts of renewable energy and storage capacity.
This included adding 1,485 megawatts of solar capacity, with backlog growth reflecting the strong execution. Additionally, Florida Power & Light plans to add more than 20,000 megawatts of installed solar capacity through 2032.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) stock is up 17% year-to-date and has largely outperformed the solar industry in 2023. This year has certainly not been easy, yet First Solar has been able to weather the storm with big plans for the future.
In their recent quarterly financial results, First Solar grew top line revenue by 27% year-over-year (YOY) to $801 million. Net income increased 646% YOY to $268.4 million, or $2.50 per share. The company has been making strategic investments in infrastructure and manufacturing.
This includes their $1.1 billion investment in their fifth manufacturing facility in the United States, adding an additional 3.5 GW of generating capacity. Over the past year, First Solar has committed $2.8 billion in CAPEX for an additional 7.9 GW of generating capacity, with plans to reach 25 GW by 2026. As the company continues to ramp up investments, First Solar is among the top solar stocks to buy for 2024.
Enphase (ENPH)
Enphase (NASDAQ:ENPH) is a leading American manufacturer of solar micro-inverters and energy storage systems. The stock is up 37% in the past month as investors digest a fed pivot in 2024.
The 2023 fiscal year has been a particularly challenging year for Enphase. The company has seen a significant decline in revenue growth and EPS, driven by supply chain disruptions and higher interest rates. Additionally, excess inventories and slower demand in the residential solar market has put a roadblock on growth. However, that doesn’t mean that the long term outlook on the company isn’t strong.
In 2023 alone, the U.S. solar industry added a record 32 GW of generating capacity. This was up 53% from 2022, and 2024 will continue to spur growth as macroeconomic uncertainties subside. As Enphase employs cost-cutting measures to end 2023, now is a great time to scoop up shares before the new year.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
