Is Fluence Energy (FLNC) One of the Best Renewable Energy Stocks to Buy in 2025?
April 16, 2025
We recently published a list of 12 Best Renewable Energy Stocks to Buy in 2025. In this article, we are going to take a look at where Fluence Energy, Inc. (NASDAQ:FLNC) stands against other best renewable energy stocks to buy in 2025.
Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead.
READ ALSO: 10 Best Clean Energy Stocks to Buy According to Billionaires
President Trump’s focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth.
In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025.
“Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,” Bruce Flatt, Brookfield’s chief executive, told Wall Street analysts.
According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries.
We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors 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).
An illustration of digital intelligence and energy storage for a modern industrial facility with servers and storage racks in the background.
No. of Hedge Fund Holders: 36
Fluence Energy, Inc. (NASDAQ:FLNC) offers energy storage products and optimization solutions for renewables and storage. The company operates in over 47 markets worldwide, providing a renewable energy ecosystem to drive the clean energy transition, including modular, scalable energy products and AI-enabled software, among others. The company offers its products and services to commercial, industrial, and utility customers.
Fluence Energy, Inc.’s (NASDAQ:FLNC) rating was recently downgraded from Overweight to Equal Weight by Christine Cho from Barclays. The analyst lowered the price target from $9 to $5 per share following rising concerns over the competitive landscape and the immediate effect of retaliatory tariffs. The downgrade also comes as Fluence’s management notably reduced its 2025 revenue guidance, adjusting the projected midpoint from $4 billion to $3.4 billion.
However, Maheep Mandloi from Mizuho initiated an Outperform rating on FLNC on March 5, setting a price target of $8. Mandloi highlighted Fluence Energy, Inc.’s strong market position to be a key aspect of its growth as a leading energy storage integrator with more than 15% market share in North America. The growing demand for battery storage and declining battery costs can benefit Fluence, added Mandloi. The analyst expects an upside for the company’s domestic battery sourcing while the U.S. utility-scale battery storage deployments could grow at a CAGR of 10% through 2030.
Overall, FLNC ranks 11th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of FLNC to grow, 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 have lost around 25%. If you are looking for an AI stock that is more promising than FLNC 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.
Terms and Privacy Policy
Search
RECENT PRESS RELEASES
Related Post
