Solar is often promoted as the clean energy of the future, along with wind turbine power generation. While both sources are incredibly clean and efficient once set up, they’re not the only options for investors. Natural gas is the other clean energy. It is more efficient and less environmentally destructive than oil-based fuels, and, unlike some emerging technologies, it’s widely used today. Clean Energy Fuels Corp. (NASDAQ: CLNE) is a solid bargain pick for energy investors. Its long term upside could be huge.
Based in California, Clean Energy Fuels has a proven business model with a profitable bottom line. It supplies natural gas fuel for vehicle fleets. The company’s customers have a combined fleet size of 48,000 natural gas vehicles. Clean Energy Fuels either fully owns, operates, or supplies over 500 natural gas fueling stations in 41 states. Revenue has grown for two consecutive years. The gross margin is reasonable at 25.36%, and the EBITDA margin is reassuring at 19.49%.
Most smaller alternative energy companies aren’t yet profitable. This one is different. By leveraging an abundant natural resource, Clean Energy Fuels can keep costs down. The infrastructure and technology to use natural gas as a fuel already exist, so there are no challenges on that front.
Analysts expect this stock to hit a target price of $5.50 in the short term, indicating strong gains for investors who buy now. Long term, as the price of petroleum increases, this could become one of the most valuable fuel companies on the public market.
- 1 Year Price Growth: 86%
- YTD Price Growth: 93%
- 3 Month Price Growth: 00%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.