Latest news with #ShoalsTechnologiesGroup
Yahoo
07-05-2025
- Business
- Yahoo
Shoals Technologies Group, Inc. (SHLS): A Bull Case Theory
We came across a bullish thesis on Shoals Technologies Group, Inc. (SHLS) on Value Investing Subreddit Page by chird_. In this article, we will summarize the bulls' thesis on SHLS. Shoals Technologies Group, Inc. (SHLS)'s share was trading at $4.41 as of May 6th. SHLS's trailing and forward P/E were 40.09 and 11.03 respectively according to Yahoo Finance. The Most Air Polluted City in the US A photovoltaic field at dawn, its solar panels shimmering in the light of a new day. Shoals Technologies (SHLS) stands out as a deeply undervalued opportunity in the renewable energy sector, especially as global demand for clean energy and AI-driven power infrastructure accelerates. Specializing in electrical balance of system solutions, Shoals is strategically expanding into supporting large-scale data centers, positioning itself at the heart of the AI energy boom. Trading around $4.40, with a fair value estimate of $12.95, the stock offers over 65% upside. Financials are compelling: a PEG ratio of 0.37, forward PE of 8.45, and a free cash flow yield above 8% reflect a growth story trading at value levels. The company maintains a strong balance sheet, with low debt (0.25 debt/equity) and high liquidity (current ratio over 2), while generating consistent cash flow. Although ROIC remains modest at 4.42%, the stock's risk/reward profile is highly attractive. With overlooked fundamentals and long-term tailwinds, SHLS presents a compelling entry point before broader market recognition. Shoals Technologies Group, Inc. (SHLS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held SHLS at the end of the fourth quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of SHLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
03-05-2025
- Business
- Yahoo
Is Shoals Technologies Group, Inc. (SHLS) Among The Most Undervalued Renewable Energy Stocks To Buy?
We recently published a list of . In this article, we are going to take a look at where Shoals Technologies Group, Inc. (NASDAQ:SHLS) stands against other most undervalued renewable energy stocks. In 2024, global energy demand increased by 2.2%, quicker than the average over the last decade. Electricity use rose significantly, up 4.3% from last year, primarily due to hotter temperatures, electrification, and the growing digital sector. Renewables were the biggest contributors to the higher energy supply, followed by natural gas and coal. Most of the demand growth came from emerging economies, especially China and India. Natural gas had the strongest growth among fossil fuels, while oil demand softened, plunging below 30% of the energy mix for the first time in 50 years. According to the International Energy Agency, more than 80% of new electricity generation came from renewables and nuclear power in 2024. Solar and wind energy hit new records, and EV sales skyrocketed past 17 million units. Solar capacity grew by 88% last year, helping it overtake hydropower and nuclear as the fourth largest source of installed capacity. While wind power faced hurdles like supply chain issues and permitting delays, it still set a new generation record and even outperformed coal for two straight months. Battery storage also saw impressive growth, rising by 64%, as utilities used it to store extra wind and solar energy. Looking ahead to 2025, Deloitte expects clean energy demand to grow even more, driven by the rise of clean tech manufacturing, data centers, and carbon capture projects, all of which are increasingly relying on 24/7 clean power. The American nonprofit organization, Resources for the Future, noted that clean energy saw a major boost with a record $2 trillion invested in technologies like renewables and energy-efficient infrastructure during 2024. This sped up the global energy transition, especially in solar and wind power. While renewables are now some of the cheapest energy sources, fossil fuels, especially coal and gas, still make up a big part of global energy use. Coal is expected to decline significantly by 2050, while the role of gas depends on how ambitious climate policies become. Regions like the United States, Europe, and especially China have led solar growth, but other countries are starting to catch up. However, high costs and financial risks in developing countries could slow things down. With that outlook in mind, let's take a look at the most undervalued renewable energy stocks to buy. Close-up of a technician doing IV curve benchmarking device testing in a technology lab. For this article, we made a list of all renewable energy stocks listed on American exchanges and picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings, as per Insider Monkey's Q4 2024 database, ranking the list from least to most hedge fund holders. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). PE Ratio as of April 30: 27.07 Number of Hedge Fund Holders: 31 Shoals Technologies Group, Inc. (NASDAQ:SHLS) designs and manufactures electrical systems for the solar and battery storage industries. The company provides a wide range of products, including solar lead assemblies, cables, combiners, and performance monitoring solutions. It is one of the most undervalued stocks to buy. On March 13, Oppenheimer analyst Colin Rusch reiterated an Outperform rating on Shoals Technologies Group, Inc. (NASDAQ:SHLS). Despite a 75% drop in stock price, SHLS shows strong demand, healthy liquidity, and profitability. Rusch also highlighted bipartisan support for renewable energy, aided by the Inflation Reduction Act funding, and maintained a $10 price target for the stock. Shoals Technologies Group, Inc. (NASDAQ:SHLS) announced on March 26 a collaboration with First Solar to strengthen domestic manufacturing in Alabama, supporting the reshoring of the US solar supply chain. First Solar's new $1.1 billion facility in Alabama has created over 800 jobs, and Shoals provides custom junction boxes made locally, helping solidify FSLR as the largest solar manufacturer in the Western Hemisphere. Among the hedge funds tracked by Insider Monkey, Shoals Technologies Group, Inc. (NASDAQ:SHLS) was part of 31 public stock portfolios at the end of Q4 2024. Steve Cohen's Point72 Asset Management was the biggest stakeholder of the company, with 5.5 million shares worth $30.6 million. Overall, SHLS ranks 5th among the most undervalued renewable energy stocks to buy right now. While we acknowledge the potential of SHLS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-04-2025
- Business
- Yahoo
Shoals Technologies Group, Inc. (SHLS): Among the Best Solar Energy Stocks to Buy According to Hedge Funds
We recently published a list of the 11 Best Solar Energy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Shoals Technologies Group, Inc. (NASDAQ:SHLS) stands against other best solar stocks. The overall energy industry has fallen by almost 8% since the beginning of the year, weighed down by the slump in crude oil prices and the prospects of a global economic slowdown. On the other hand, the clean energy sector has largely remained flat, posting YTD gains of 0.6% at the time of writing this piece. Solar energy has emerged as a leading candidate in the current global 'green transition', thanks in large part to its cost, reliability, availability of supply chain, and speed of construction. Moreover, a significant increase in battery power over the last few years and reductions in battery costs have helped drive solar power's growth by delivering firm power even during early morning and evening peak power conditions. So it doesn't come as a surprise that the United States installed a record-breaking 50 gigawatts (GW) of new solar capacity in 2024, the largest single year of new capacity added to the grid by any energy technology in over twenty years. Moreover, a recent report by Wood Mackenzie and the Solar Energy Industries Association revealed that solar and storage accounted for 84% of all new electric generating capacity added to the grid last year. A significant growth opportunity for the sector has emerged in the form of the ongoing AI boom and its accompanying data centers. According to a study by the American Clean Power Association, electricity demand in the US is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification. Solar power is a primary candidate to fill this supply gap, since it can be built faster and more affordably than any other technology. That said, the rapidly expanding sector has suffered a serious setback since the beginning of the year, primarily due to President Trump's global trade war and his reversal of the Biden-era energy and climate policies. The current administration wants to refocus efforts on the fossil fuel sector, while conservatives push Congress to wipe out tax incentives for clean energy. As a result, over half of the nearly $30 billion in clean technology factories that were scheduled to come online this year — including manufacturing facilities for solar, wind, batteries, and electric vehicles — are now predicted to face delays or cancellations, according to a report by BloombergNEF. Solar investors are also fretting about the increasing uncertainty amidst the global tariff war, as the majority of US solar panel imports were coming from Southeast Asian countries like Thailand, Malaysia, and Vietnam. While the President has imposed a 90-day pause on imposing reciprocal levies, it is clear that no country is safe from his tariffs. However, this troublesome geoeconomic landscape has granted a significant advantage to companies that are manufacturing domestically. However, they still must import parts, increasing their costs. To give an example of how tariffs can impact the industry, let us remember Donald Trump's last tenure as president, when he imposed a 30% tariff on imported solar cells and panels in 2018. This policy led the country's renewable energy companies to cancel or freeze investments of over $2.5 billion in large-scale installation projects, resulting in thousands of lost jobs. A photovoltaic field at dawn, its solar panels shimmering in the light of a new day. To collect data for this article, we scanned Insider Monkey's database of 1,009 hedge funds and picked the top 11 companies operating in the solar energy sector with the highest number of hedge fund investors in Q4 2024. When two or more companies had the same number of hedge funds investing in them, we ranked them by their market cap as of the writing of this piece. The following are the Best Solar Energy Stocks According to Hedge Funds. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). No. of Hedge Fund Holders: 31 Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of electrical balance of systems (EBOS) solutions for solar, energy storage, and eMobility. The company is a recognized leader in the renewable energy industry, whose solutions are deployed on over 20 GW of solar systems globally. Shoals Technologies Group, Inc. (NASDAQ:SHLS) had a mixed Q4 2024 as its adjusted EPS of $0.08 fell below estimates by $0.02. However, the company's revenue of $107 million topped expectations by $4.92 million and finished the year at the high end of its previously guided range. Moreover, SHLS entered 2025 with approximately $635 million of backlog and awarded orders, including $440 million with deliveries right this year. The company generated $80.39 million in operating cash flow in 2024 and still has $125 million currently remaining under its share repurchase authorization. Shoals Technologies Group, Inc. (NASDAQ:SHLS) revealed last month that it would continue its partnership with First Solar to invest in domestic manufacturing in Alabama. The collaboration aims to strengthen the reshoring of the US solar industry supply chains, supporting the country's push toward energy independence and sustainable growth. Shoals Technologies Group, Inc. (NASDAQ:SHLS) was held by 31 hedge funds in the IM database at the end of Q4 2024 with a total stake value of over $157 million, putting it among the Best Solar Energy Stocks to Invest in. Overall, SHLS ranks 7th on our list of the best solar energy stocks to buy according to hedge funds. While we acknowledge the potential of SHLS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Shoals Technologies Group, Inc. (SHLS): Among the Best Solar Energy Stocks to Buy According to Hedge Funds
We recently published a list of the 11 Best Solar Energy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Shoals Technologies Group, Inc. (NASDAQ:SHLS) stands against other best solar stocks. The overall energy industry has fallen by almost 8% since the beginning of the year, weighed down by the slump in crude oil prices and the prospects of a global economic slowdown. On the other hand, the clean energy sector has largely remained flat, posting YTD gains of 0.6% at the time of writing this piece. Solar energy has emerged as a leading candidate in the current global 'green transition', thanks in large part to its cost, reliability, availability of supply chain, and speed of construction. Moreover, a significant increase in battery power over the last few years and reductions in battery costs have helped drive solar power's growth by delivering firm power even during early morning and evening peak power conditions. So it doesn't come as a surprise that the United States installed a record-breaking 50 gigawatts (GW) of new solar capacity in 2024, the largest single year of new capacity added to the grid by any energy technology in over twenty years. Moreover, a recent report by Wood Mackenzie and the Solar Energy Industries Association revealed that solar and storage accounted for 84% of all new electric generating capacity added to the grid last year. A significant growth opportunity for the sector has emerged in the form of the ongoing AI boom and its accompanying data centers. According to a study by the American Clean Power Association, electricity demand in the US is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification. Solar power is a primary candidate to fill this supply gap, since it can be built faster and more affordably than any other technology. That said, the rapidly expanding sector has suffered a serious setback since the beginning of the year, primarily due to President Trump's global trade war and his reversal of the Biden-era energy and climate policies. The current administration wants to refocus efforts on the fossil fuel sector, while conservatives push Congress to wipe out tax incentives for clean energy. As a result, over half of the nearly $30 billion in clean technology factories that were scheduled to come online this year — including manufacturing facilities for solar, wind, batteries, and electric vehicles — are now predicted to face delays or cancellations, according to a report by BloombergNEF. Solar investors are also fretting about the increasing uncertainty amidst the global tariff war, as the majority of US solar panel imports were coming from Southeast Asian countries like Thailand, Malaysia, and Vietnam. While the President has imposed a 90-day pause on imposing reciprocal levies, it is clear that no country is safe from his tariffs. However, this troublesome geoeconomic landscape has granted a significant advantage to companies that are manufacturing domestically. However, they still must import parts, increasing their costs. To give an example of how tariffs can impact the industry, let us remember Donald Trump's last tenure as president, when he imposed a 30% tariff on imported solar cells and panels in 2018. This policy led the country's renewable energy companies to cancel or freeze investments of over $2.5 billion in large-scale installation projects, resulting in thousands of lost jobs. A photovoltaic field at dawn, its solar panels shimmering in the light of a new day. To collect data for this article, we scanned Insider Monkey's database of 1,009 hedge funds and picked the top 11 companies operating in the solar energy sector with the highest number of hedge fund investors in Q4 2024. When two or more companies had the same number of hedge funds investing in them, we ranked them by their market cap as of the writing of this piece. The following are the Best Solar Energy Stocks According to Hedge Funds. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). No. of Hedge Fund Holders: 31 Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of electrical balance of systems (EBOS) solutions for solar, energy storage, and eMobility. The company is a recognized leader in the renewable energy industry, whose solutions are deployed on over 20 GW of solar systems globally. Shoals Technologies Group, Inc. (NASDAQ:SHLS) had a mixed Q4 2024 as its adjusted EPS of $0.08 fell below estimates by $0.02. However, the company's revenue of $107 million topped expectations by $4.92 million and finished the year at the high end of its previously guided range. Moreover, SHLS entered 2025 with approximately $635 million of backlog and awarded orders, including $440 million with deliveries right this year. The company generated $80.39 million in operating cash flow in 2024 and still has $125 million currently remaining under its share repurchase authorization. Shoals Technologies Group, Inc. (NASDAQ:SHLS) revealed last month that it would continue its partnership with First Solar to invest in domestic manufacturing in Alabama. The collaboration aims to strengthen the reshoring of the US solar industry supply chains, supporting the country's push toward energy independence and sustainable growth. Shoals Technologies Group, Inc. (NASDAQ:SHLS) was held by 31 hedge funds in the IM database at the end of Q4 2024 with a total stake value of over $157 million, putting it among the Best Solar Energy Stocks to Invest in. Overall, SHLS ranks 7th on our list of the best solar energy stocks to buy according to hedge funds. While we acknowledge the potential of SHLS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
21-04-2025
- Business
- Yahoo
Shoals Technologies Group (SHLS): Among the Most Undervalued Penny Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Most Undervalued Penny Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Shoals Technologies Group, Inc. (NASDAQ:SHLS) stands against other undervalued penny stocks. Earlier on March 18, Keith Fitz-Gerald, Fitz-Gerald Group CIO, joined 'Power Lunch' on CNBC to talk about how to make sense of the market and the recession versus the growth scare. Keith Fitzgerald has favored some big momentum names in recent years and is still very positive on these stocks, despite feeling frustrated by recent market action. He thinks this volatility partially comes from computers, algorithms, and equity beta. He advised the average investor to focus on fundamentals and pay attention to the insights of leaders like Jensen Huang as a way to move forward. Fitzgerald also revealed that he had been adding to all of his positions over the then-past week and planned to continue doing so, instead of joining the selloff stride. He explained that he invests with a 3, 4, or even 10-year horizon and believes that these companies are dramatically undervalued at present, even if that view is unpopular. As the conversation turned to how Fitzgerald distinguishes between stocks that have further downside and those that are poised for a turnaround, he suggested slowing down buying rather than trying to perfectly time the bottom. Fitzgerald emphasized that he is more concerned with finding a good entry point than catching the absolute lowest price. He views deeper selloffs as more attractive opportunities, and recognizes that technical factors driven by algorithms are pushing prices. Fitzgerald agreed that the persisting sources of uncertainty remain, such as the ongoing confusion around Trump's tariff policies and uncertainty in the AI sector. He noted that traders dislike uncertainty above all else because it prevents decisive actions. However, Fitzgerald remains focused on long-term trends and themes, such as AI, automation, and full-service business models. As he evaluates opportunities, he looks for where this investment will flow, which companies are most likely to benefit, and whose customers are most engaged. For Fitzgerald, the focus remains on companies with high-quality leadership, strong products, and loyal customers. We used the Finviz stock screener to compile a list of cheap penny stocks that were trading under $5 and had a forward P/E ratio under 15. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Note: All data was sourced on April 18. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Close-up of a technician doing IV curve benchmarking device testing in a technology lab. Share Price as of April 18: $3.38 Forward P/E ratio as of April 18: 8.45 Number of Hedge Fund Holders: 31 Shoals Technologies Group, Inc. (NASDAQ:SHLS) provides electrical balance of system solutions and components. It designs, manufactures, and sells various products used by the solar and battery storage industries, such as solar big lead assembly solutions, and plug-and-play cable and cabinet solutions. On February 26, Mizuho Securities analyst Maheep Mandloi reaffirmed a Buy rating on Shoals Technologies Group, Inc. (NASDAQ:SHLS) with a $6 price target due to its growth potential despite current challenges. 2024 was tough due to project delays, but Shoals focused on improving its business. It launched new products, expanded into new markets, and won international deals. Mandloi also highlighted that the company's transition to a Tennessee facility is expected to enhance its performance. The company's main business is providing electrical components for large solar projects. In Q4 2024, it made $107 million in revenue and booked $145 million in new orders, which totaled $635 million in backlog. It won $8 million in new international projects, ending with $86 million in international backlog. For the full year 2025, Shoal expects $410-450 million in revenue. Mandloi noted that the company forecasted an 8% year-over-year revenue increase by 2025. Overall, SHLS ranks 5th on our list of the most undervalued penny stocks to buy according to hedge funds. While we acknowledge the growth potential of SHLS, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
