Methanex Corp. (NASDAQ: MEOH) is the world’s largest producer of methanol, a key Clean Alternative Energy Fuel. Methanol can be produced from coal and gas processing, as well as from waste to energy conversion and other clean methods. It is used for electricity, fuel cells, cooking, and as an automotive and marine fuel.
For investors looking ahead to a greener future with less reliance on raw coal, gas, and oil energy, methanol is an exciting area of investment. Methanex generated strong revenue growth in 2017 and 2018, before total revenue fell 25% in 2019, due to competition from traditional energy. While the short term outlook is mild, the company could see strong long term growth as more consumers and large scale transportation companies seek affordable and cleaner fuels.
This stock is currently trading at around 65% below its estimated market value, and revenue is expected to grow by 9.88% in the current fiscal year. This could lead to growth in the stock, which has already rallied in recent weeks.
Some alternative energy stocks are highly speculative and are based on markets that are still in their growth stages. Methanex already has a major global presence and a widely established market for its alternative fuels, making it a more secure pick for new investors.
Although priced beyond the normal ‘bargain’ cap of $10 per share, this stock still has potential and its 0.74% yield can even create income in today’s volatile market.
- 1 Year Price Growth: -53.25%
- YTD Price Growth: -47.66%
- 3 Month Price Growth: 12%
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.