EthanolPacific Ethanol Inc. (NASDAQ: PEIX) is a specialist producer of carbon renewable fuel. It develops, produces, markets, and distributes ethanol products to industrial users. This stock is gaining this week, following news that the company will expand its production capabilities, giving it higher potential in the growing ethanol fuel market.

Revenue at Pacific Ethanol declined in 2018 and 2019, due to high competition from oil-derivative fuels. The low price of oil has made alternative options less compelling, but this is likely to be a short term hurdle for the company. The demand for ethanol is now increasing again, thanks to a continued push for businesses to utilize greener and more cost-effective fuels.

Pacific Ethanol will be ready to meet that demand and increase its revenue and income in the coming quarters. It announced this week that it had added 25 million gallons of alcohol production capacity to its sites in 2020 so far. It aims to further increase production by 30 million gallons per year.

Earnings are expected to grow at a rate of 66.21% this year. The combination of growing earnings along with expanded production capacity has generated activity in the stock market. The share price is up 76.77% over five days, and there’s likely more to come with an average target price of $2.00.

Investors focused on clean alternative energy should consider this bargain stock. Its momentum today and potential to serve growing ethanol demand in the future make it a top pick.

Key Data:

  • 1 Year Price Growth: 30%
  • YTD Price Growth: 23%
  • 3 Month Price Growth: 91%

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