Shoals Technologies Poised for Growth Despite Headwinds, Presents Buying Opportunity for Solar and EV Investors
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Shoals Technologies (SHLS) provides electrical balance of systems (EBOS) solutions to the rapidly growing solar and electric vehicle (EV) industries. Its innovative plug-and-play products reduce installation costs.
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The solar and EV markets are projected to see massive growth over the next decade, benefiting SHLS. SHLS already commands over 50% U.S. solar market share.
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SHLS has delivered stellar financial results the past 3 years - 40.7% revenue CAGR and significant margin expansion. Growth expected to continue.
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Both valuation models (Graham and DCF) suggest SHLS is undervalued trading around 38% below intrinsic value, presenting long-term upside.
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Short-term headwinds like high interest rates have pushed stock down 50% from highs, allowing investors to start positions at a discount. Upside outweighs risks.