Motley Fool Money Underappreciated Rule-Breaking Small Caps
Sep 23, 2025
Analysts Jason Hall and Toby Bordelon examine intriguing small-cap stocks that challenge conventional investing wisdom. Jason advocates for a nuanced view of the renewable energy sector, balancing cyclical issues against long-term growth. Toby shares insights on how Phinia serves as a buffer in the shift to electric vehicles while discussing the dynamics of legacy auto markets. They also explore Chaji, a premium Chinese tea chain, revealing its rapid expansion and unique economic model. Expect fresh ideas and captivating stock picks!
AI Snips
Chapters
Books
Transcript
Episode notes
Renewables Are Cyclical Yet Secure Long-Term
- Renewable energy stocks have been hit by higher rates and policy rollbacks but still show secular demand drivers.
- Enphase and Fluence occupy different segments (residential microinverters vs. utility-scale batteries) with distinct recovery paths.
Enphase's Durable Unit Economics
- Enphase has kept market share during the downturn and benefits from strong margins and contract manufacturing.
- The company remained cash-flow positive each quarter through the slump, showing resilient unit economics.
Manage Renewable Risk With Position Sizing
- Use position sizing to manage the high uncertainty and volatility in renewable stocks.
- Keep exposure small enough to follow the story and add to winners over time.
