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