Renewable EnergyBiofuels company Renewable Energy Group Inc. has been a popular investment with bargain hunters. The stock, which has at points fallen below $10 in the last 52 weeks, is now sitting just above $15. It has rallied 47.25% in the last month, and analysts predict that it has even more room for growth. This might fall just outside of the typical bargain sweet spot, but it’s still a solid pick for alternative investors.

Renewable Energy Group Inc. (NASDAQ: REGI) is an energy company that produces biofuel and other renewable chemicals. Its largest business segment, which creates biomass-based diesel, develops its product from waste vegetable oils, animal fats, methanol, and feedstocks. While not quite as ‘clean’ as solar and battery technologies, biomass-based diesel can still help to offset America’s carbon footprint.

The company has generated consistent revenue growth over the last five years. In 2018, full year revenue was up 10.60%, with total sales of $2.38 billion. The company achieved positive free cash flow growth last year, increasing its figure by 945% to hit $319.08 million. This indicates a turnaround in fiscal performance and responsibility.

Even though this is just outside of traditional bargain pricing, the stock is still highly affordable today. Most importantly, the average analyst target of $27.25 indicates a significant upside for investors.

Key Data:

  • YTD Price Growth: -38.64%
  • 3 Month Price Growth: 68%
  • 1 Month Price Growth: 25%

 

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