Stocks ticked higher to kick off the final week of a turbulent month. Today, we’re highlighting a small-cap company with business expansion and margin improvements on deck for the year’s second half. Wall Street foresees an average 72% upside in the next twelve months for this tiny company’s stock, which currently trades for less than $5 a share.
Clean Energy Fuels (CLNE)
Natural gas is turning out to be one of the more popular petroleum fuels in the world right now. In fact, data from the Energy Information Administration (EIA) shows that natural gas was the second most widely used fuel in the U.S., accounting for 32% of the energy consumption in 2021 thanks to rapid adoption within the electricity sector.
Natural gas distributor Clean Energy Fuels is expanding its business beyond conventional natural gas in 2023. The company is diversifying its historical status as purely a fuel distributor towards in-house production of renewable natural gas (RNG).
“Margin improvement is on deck heading into the second half,” Raymond James analyst Pavel Molchanov said. “For 2024, we estimate EBITDA of approximately tripling, this being the first year with a meaningful contribution from in-house RNG production,” he continued.
The first quarter of 2023 was overshadowed by the historic run-up in the price of natural gas in California, which, ultimately, the company had to bear. Fortunately, the California gas costs run-up was isolated to principally January, with prices moderating in California by March. Also, on the positive side, natural gas costs declined and have remained consistently low outside of California.
CLNE share price has lost nearly 19% of its value year to date. The current consensus among 11 polled investment analysts is to Buy CLNE. A median 12-month price target of $7 represents a 72% increase.
Warning: Biden’s Big Blackout is Coming
So-called “green” energy is… DANGEROUS to human health… BAD for the environment…
And it DOES NOT WORK.
Right now, “green” energy is contributing to…Fuel shortages (the media has ignored this)…Sky-high energy bills hurting good Americans…And blackouts affecting every corner of our nation.
Democrats don’t mention any of this, do they Well, “stuff” is about to hit the fan.The collapse of their “Green New SCAM” will usher in…
The Triumphant Return of American Energy.…
[Click here to learn how to profit from the coming energy boom.]