Solar stocks continue to present intriguing opportunities for investors looking for growth potential. This February edition highlights three companies that stand out for their innovative approaches and strategic moves in the market. Each of these companies has demonstrated significant potential despite the challenges and volatility inherent in the solar industry.
The recent headwinds battering the solar industry may be disappointing for those who think in the short-term. However, looking further ahead, we can agree that solar will become a crucial part of the world’s transition to a carbon-free model.
So, with this growth prospect in mind, here are three solar stocks that could multiply investments and become multibaggers.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) is known for its microinverters, energy storage systems and energy management technology.
The company remains a significant player in the solar energy sector despite facing challenges such as weaker-than-expected demand in Europe. Analysts appreciate it catering primarily to the rooftop solar market with a fully integrated solar-plus-storage solution.
The company has numerous forks in the fire for future growth. This includes starting battery manufacturing in the U.S. to enhance IRA incentives and support its bottom line. For Q4, management expects revenue in the $300 to $350 million range, with a gross margin above 40%, even excluding IRA benefits.
The company’s stock price has fallen 39.70% over the past year amid global headwinds that have battered the entire industry. This implies a substantial upside from its current stock price and thus, is undervalued.
JinkoSolar (JKS)
JinkoSolar (NYSE:JKS) is widespread in key markets worldwide. The company reported Q3 2023 earnings with a 63% year-over-year revenue increase and a notable improvement in gross profit. JKS stock’s diversified customer base spans various regions, including China, the United States, Japan, Germany and many others.
JKS is gearing up for a good year in FY2024 with its N-type 66-cell solar panels deploying in African markets. These panels, boasting 600W power output and 22.72% efficiency, represent strong technological progress for the company.
Some analysts are very bullish on JKS. The company’s P/E ratio stands significantly below the S&P 500 average for the solar sector. Assuming a conservative discount from the U.S. average P/E ratio due to unique risks, JKS still appears significantly undervalued. Its long-term valuation estimate places the stock price between $90-$100.
SinglePoint (SING)
SinglePoint (CBOE:SING) has completed the acquisition of the remaining interests in Boston Solar. This move and its recent uplisting to the CBOE marketplace have strengthened SinglePoint’s balance sheet and credibility.
The CEO of SinglePoint has expressed confidence in the company’s trajectory, citing over $30 million in trailing 12-month revenues as a strong foundation for future growth. The focus for 2024 includes continuing to acquire accretive assets.
SING could be one of those multibaggers in the making due to its very low valuation. Its market cap was just 2.75 million and its share price hovers around the $0.34 mark.
The uplisting to the CBOE BZX market and the funds raised could be highly accretive for early investors. It gives the company the required liquidity to launch various projects, which is a huge advantage over its peers.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
