The great attention given to decarbonization across the globe presents solid commercial opportunities for corporations supporting the transition. With solar being one primary renewable energy source, the sector could see substantial investments, and stocks like Sunrun (NASDAQ:RUN) and Enphase Energy (NASDAQ:ENPH) could deliver solid returns.
Governments around the world have set ambitious targets to reduce their carbon footprint. Meanwhile, President Biden’s Inflation Reduction Act further extends the solar investment tax credit, reducing the cost of installing rooftop solar. All these measures point to a healthy future for these companies.
But before you jump to any conclusions, let’s find out what TipRanks’ stock analysis tools are signaling for these companies.
Is ENPH a Buy or Sell?
Enphase manufactures and sells products and solutions for the solar photovoltaic industry. It offers solar microinverter and storage systems and has been benefitting from strong demand trends. Given the sector tailwinds, ENPH stock has a Strong Buy consensus rating on TipRanks, reflecting 14 Buys and three Holds. Meanwhile, these analysts’ average price target of $329.59 implies 20.05% upside potential.
While Wall Street is bullish, insiders sold ENPH stock worth $20.2M last quarter. Further, hedge funds sold 753.4K ENPH stock. Overall, it carries an Outperform Smart Score of eight on TipRanks.
Is Now a Good Time to Buy Sunrun Stock?
Sunrun develops, installs, and sells solar energy systems and products. With heightened environmental awareness and an incremental tax credit, Sunrun is likely to benefit from favorable sector trends. Furthermore, on TipRanks, RUN stock sports a Strong Buy consensus rating based on 13 Buy and two Hold recommendations.
What stands out is the stellar upside potential of the RUN stock. Wall Street analysts’ average price target of $47.87 implies 101.64% upside potential.
Though analysts are bullish, insiders sold RUN stock worth $574.4K in the last three months. Meanwhile, hedge funds sold 1.7M RUN stock. Meanwhile, it has a Neutral Smart Score of four on TipRanks.
Bottom Line
These solar stocks have negative signals from insiders and hedge funds. However, analysts’ bullish outlook, strong focus on decarbonization, and benefits from the Inflation Reduction Act could support the upside in these two stocks.
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