Solar energy systems company Shoals (NASDAQ:SHLS) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 11.7% year on year to $110.8 million. On top of that, next quarter’s revenue guidance ($130 million at the midpoint) was surprisingly good and 7.8% above what analysts were expecting. Its non-GAAP profit of $0.10 per share was 19.3% above analysts’ consensus estimates.
Shoals Technologies (SHLS) beats Q2 earnings estimates with $110.8M revenue, up 11.7% YoY, sparking a 6.9% pre-market rally. Strong solar demand and bullish Q3 outlook fuel investor optimism.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
Shares of solar energy systems company Shoals (NASDAQ:SHLS)
jumped 3.3% in the morning session after an upgrade from Jefferies earlier in the week continued to fuel investor optimism. The stock received a boost on Monday when Jefferies upgraded the shares from a "Hold" to a "Buy" rating and increased its price target to $7.20 from $4.90. Analysts at the firm cited improved growth prospects and tailwinds from U.S. tax and spending legislation benefiting the solar sector as reasons for the positive revision.
Shares of solar energy systems company Shoals (NASDAQ:SHLS)
jumped 6.7% in the morning session after an analyst at Jefferies upgraded the stock to "Buy" from "Hold" and significantly raised the price target.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
