Investing

Goldman Sachs Has 5 Solar Stocks to Buy Now With 40% to Over 100% Upside Potential

Enphase Energy

While somewhat forgotten, this sector leader is another top solar energy play. Enphase Energy Inc. (NASDAQ: ENPH) designs, develops, manufactures and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.

The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems, Envoy communications gateway and Enlighten cloud-based monitoring service, as well as other accessories.

Enphase Energy sells its solutions to solar distributors and directly to large installers, original equipment manufacturers, strategic partners and homeowners, as well as directly to the do-it-yourself market through its legacy product upgrade program or online store.

Goldman Sachs continues to love the secular growth story on battery storage and the European exposure, but it lowered the $264 target price to $231. The consensus target for Enphase Energy stock is $235.67. Shares closed on Tuesday at $142.67 apiece, so hitting the Goldman Sachs target would be a 65% gain.

Shoals Technologies

This off-the-radar idea appears to have bottomed and looks poised to trade higher. Shoals Technologies Inc. (NASDAQ: SHLS) provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. The company offers EBOS components, such as cable assemblies, inline fuses, combiners, recombiners, disconnects, wireless monitoring systems, junction boxes, transition enclosures and splice boxes that carry the electric current produced by solar panels to an inverter and to the power grid. The company sells its products to engineering, procurement and construction firms that build solar energy projects.

Top money managers have started to nibble at the shares at current levels, and a money-making stock like Shoals Technologies appears to be one of the top targets.

The $35 Goldman Sachs target price was lowered to $28, way below the $50.09 consensus target. Shoals Technologies stock closed on Tuesday at $17.23, so hitting the price objective would be a 65% gain.

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