Alternative investors can find strong buys when looking beyond the usual stocks, with ethanol fuel being a promising area of interest. Ethanol is a renewable energy source derived from plant materials. Green Plains Partners LP (NASDAQ: GPP) is an ethanol storage company that stands to make long term gains if current relief for the industry has a lasting effect.
Green Plains Partners saw a -5.84% revenue decline in 2018, but its performance over the last five years has been highly impressive. It went from generating just $12.84 million in revenue in 2014, to $100.75 million at the end of last year. The company is efficiently managed and maintains a 64.95% profit margin.
In late August, President Trump announced a major incoming relief package for ethanol producers, which could help to sustain the biofuels industry against strong competition from low oil prices.
Ethanol might not be the most profitable fuel today, but it has long term value as an alternative and renewable energy source. Green Plains Partners isn’t a producer, but its storage business will benefit from a robust sector.
Even if investors must wait for a turnaround in the ethanol industry, this stock provides a dividend in the meantime. The 14.63% yield offsets poor stock performance and makes this attractive for bargain investors. Despite being slightly above the $10 threshold, this stock still offers value today.
- 1 Year Price Growth: -15.37%
- YTD Price Growth: -4.27%
- 3 Month Price Growth: -4.70%
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.