Array Technologies, Inc. (ARRY): A Bull Case Theory

We came across a bullish thesis on Array Technologies, Inc. on r/Valueinvesting by u/c-u-in-da-ballpit. In this article, we will summarize the bulls’ thesis on ARRY. Array Technologies, Inc.'s share was trading at $10.00 as of January 13th. ARRY’s trailing and forward P/E were 63.59 and 10.99 respectively according to Yahoo Finance.

Array Technologies has undergone a dramatic operational turnaround, evolving from a loss-making business in 2024 into a high-growth utility-scale solar infrastructure leader in 2025, while its valuation continues to lag the underlying improvement in fundamentals. The company exited 2024 with a $296 million net loss and flat revenue of $916 million, yet is now on track to close 2025 with revenue approaching $1.28 billion alongside a 74% year-to-date increase in shipment volumes, clearly signaling a sharp inflection in demand and execution.

Management has reinforced this recovery through a disciplined balance sheet reset, issuing new 2.875% notes to fully retire a $233 million term loan and opportunistically repurchasing $100 million of legacy debt at a roughly 20% discount. Despite these improvements, the market appears slow to recognize the earnings power of the business. Array trades at a forward P/E of 11.5 and a PEG ratio of just 0.58, even as earnings are expected to grow roughly 33% next year, suggesting a meaningful disconnect between valuation and growth.

The stock also carries notable technical leverage, with short interest at 26.6% of the float and institutional ownership exceeding 100%. Bears appear anchored to a repeat of 2024’s struggles, but current data tells a different story, including 70% quarterly revenue growth, $1.9 billion in new orders, and a structurally improved debt profile. The author estimates fair value near $14, implying roughly 30% upside.

Strategically, Array benefits from selling solar tracking hardware rather than panels, meaning lower panel prices can actually stimulate demand by reducing total project costs. Its trackers rely on complex engineering, proprietary software, and machine learning optimized for decades of harsh operating conditions, areas where low-cost Chinese competitors have struggled to gain utility trust.

Alongside Nextracker, Array controls nearly half of the global tracker market and is further protected domestically by U.S. manufacturing incentives. While nuclear power may be a long-term solution, solar projects with trackers can be deployed far faster, making them a practical near-term answer to rising AI-driven energy demand, particularly in urban-adjacent regions where nuclear expansion faces resistance.

Previously, we covered a bullish thesis on First Solar, Inc. by Oliver | MMMT Wealth in April 2025, which highlighted the advantages of CdTe technology, tariff protection, and domestic manufacturing strength. FSLR's stock price has appreciated by approximately 85.59% since our coverage. This is because the thesis played out as trade policy and supply chain dynamics favored U.S. producers. u/c-u-in-da-ballpit shares a similar view but emphasizes operational recovery and valuation disconnect at Array Technologies.

Array Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held ARRY at the end of the third quarter which was 36 in the previous quarter. While we acknowledge the potential of ARRY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.