Solar Stocks Shine Bright: Nextracker, Tigo, and Array Lead the Utility-Scale Surge

The U.S. solar industry is navigating a storm of macroeconomic and policy headwinds, yet the sector's backbone—utility-scale solar—continues to thrive. Despite China's dominance in module manufacturing and the temporary IRA funding freeze, developers are pushing forward with projects that promise 33% more solar generation by summer 2025. Amid this landscape, three companies—Nextracker (NXT), Tigo Energy (TYGO), and Array Technologies (ARRY)—stand out as undervalued leaders positioned to capitalize on growth. Let's dissect their strategies, Zacks Rank ratings, and why they're worth watching.

Nextracker (NXT): A Hold with Hidden Strength
Nextracker's Zacks Rank #3 ("Hold") might seem cautious, but its fundamentals tell a different story. The company recently acquired Bentek Corporation, a move that strengthens its supply chain and vertical integration. This strategic step is critical as the industry grapples with global supply chain volatility.
Analysts have revised NXT's fiscal 2026 earnings estimates upward by 12.6% over 60 days, signaling improving confidence. While its Zacks ranking reflects broader industry headwinds, NXT's focus on utility-scale projects—where margins are higher and demand is surging—positions it to outperform once macro challenges ease.
Tigo Energy (TYGO): The Clear Buy in a Sluggish Sector
Tigo Energy's Zacks Rank #2 ("Buy") is no accident. The company's residential and commercial solar solutions, paired with recent certifications, are unlocking new growth avenues. A compatibility deal with Sonnen's energy storage systems, for example, expands its market reach in the residential sector.
On the numbers: TYGO's 2025 sales are projected to jump 64%, fueled by its SmartKey technology and partnerships. This explosive growth, combined with its strong balance sheet, makes it the top pick among the trio.
Array Technologies (ARRY): Hold with Strategic Ambition
ARRY's Zacks Rank #3 mirrors NXT's neutral stance, but its acquisition of APA Solar in late 2024 adds depth to its product portfolio. This move bolsters its position in tracker systems and structural components for utility-scale projects.
Analysts project a 19.6% sales increase for 2025, driven by domestic manufacturing gains under IRA incentives. While slower than TYGO's pace, ARRY's focus on U.S. manufacturing aligns with IRA goals, making it a solid long-term bet.
The Bigger Picture: Industry Challenges vs. Utility-Scale Opportunities
The broader solar industry's Zacks Industry Rank of #181 (bottom 26% of all sectors) reflects valid concerns: declining earnings estimates, China's cost advantages, and IRA delays. However, utility-scale solar is a bright spot. With projects like the 1.1 GW Gemini Solar Plant advancing, this segment is proving resilient.
Investors should note that the IRA's delayed funding for solar projects is temporary. Once reinstated, it could supercharge demand for trackers (NXT, ARRY) and smart inverters (TYGO).
Investment Takeaways
- Buy Tigo Energy (TYGO) now: Its Zacks Rank and sales growth justify the risk.
- Hold Nextracker (NXT) and Array (ARRY): Wait for sector dips or IRA clarity to enter.
- Watch utility-scale trends: A 33% solar generation jump in 2025 is a bullish sign.
The solar sector's undervaluation presents a buying opportunity for those willing to look past near-term noise. With these three companies leading the charge in innovation and strategy, the path to growth is clear—provided investors stay disciplined.
The sun is rising on a new era of solar leadership. Are you ready to shine?
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