A Natural Gas Stock for Bargain Investors

natural gasCentral Puerto S.A. (NYSE: CEPU) is an Argentinian energy company that primarily generates from natural gas sources. Natural gas has been recognized as an important bridge between today’s energy industry and a renewable future. It produces up to 50% fewer carbon emissions when compared to coal, and it is readily available and relatively affordable to extract and process.

This stock, with its incredibly low price, could fit well into any alternative portfolio. Solar and wind stocks are becoming less affordable, making natural gas a promising area of investment. Traditionally, Central Puerto pays a dividend, although this has been halted amid the global Coronavirus Pandemic. The company’s growth slowed in 2020 but was still positive with revenue expanding by 5.79%. It is profitable with a 55.87% gross margin and a 71.66% EBITDA margin. Even without the dividend, there’s growth potential to make this pick compelling.

For a future where renewables are likely to dominate, Central Puerto is prepared. It has commissioned seven wind farms since 2016 and currently generates 374 megawatts from wind power.

The average target price of $12.89 suggests strong gains for investors who buy Central Puerto at today’s price.

Key Data:

  • 1 Year Price Growth: -11.20%
  • YTD Price Growth: -20.74%
  • 3 Month Price Growth: -18.94%

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.


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