Stocks were mixed this morning to start off one of the biggest weeks of the summer for Wall Street. A barrage of economic data is set for release later this week that should help bring clarity to the recovery picture. But first, the FOMC kicks off their 2-day meeting today. While the chance for a change in rates is slim to none, Wall Street will be watching for indicators that the Fed may soon begin to wind down its bond buying program, which could be interpreted as the first step towards a rate hike.
We’ll also get Q2 earnings numbers from some of the biggest tech names like Microsoft (MSFT), Amazon (AMZN), Apple (AAPL) and Facebook (FB). Tesla (TSLA) is slated to kick things off after the closing bell today.
In today’s trade alert we’ll cover a company that’s committed to easing the transition to cleaner, greener living through renewable fuels. They just signed a major agreement with Amazon (AMZN) and the pros see more than a 150% upside in the next 12-months. There is little doubt that this company will provide positive results, the only question is – will you be one of the beneficiaries?
According to the California Air Resource Board, every 100,000 gallons of renewable natural gas supplied equates to removing 1,025 cars from the road. Clean Energy Fuels (CLNE) is the leading provider of natural gas for transportation in the U.S., operating more than 565 stations across the country. The company serves to reduce carbon emissions through the use of methane, a by-product of the breakdown from organic matter at waste treatment plants, landfills and farms.
Clean Energy delivers around 360 million gallons of renewable natural gas each year, which is a pretty good chunk of the country’s total annual production capacity of 500 million gallons. For the first quarter revenue fell resulting in an increase to net losses. This was mostly due to disruptions in the supply chain related to COVID-19.
The company recently signed a five year agreement with Amazon (AMZN) to provide renewable natural gas at 27 existing fuel stations and another 19 that are still being built. An agreement that could supply hundreds of millions of gallons of renewable natural gas alone But that’s not all. The e-commerce giant also plans to take up to a 20% stake in Clean Energy over the next ten years.
As the nation’s top producer of renewable natural gas, CLNE is well aligned to benefit from the Biden administration’s plan to reduce carbon emissions in the U.S. by 50% over the next decade.
CLNE shares have lost 36% over the past month, lagging the Utilities sector’s loss of 4% and the S&P 500’s gain of 3.86%. Investors will be hoping for strength from CLNE as it approaches its Q2 earnings release which is slated for August 5th. The company is expected to report EPS of $0, up 100% from the prior-year quarter.
Of 6 analysts offering recommendations for CLNE stock 4 rate the stock a Buy, 1 rate it a Hold and only 1 rates it a Sell. A median price target of $20 implies a 164% upside over the next 12 months.
Where to invest $1,000 right now...
Before you consider buying Clean Energy Fuels, you'll want to see this.
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And it's not Clean Energy Fuels.
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Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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