Major corporations have also shown a lot of interest in the RNG space with Clean Energy Fuels recently signing deals to build renewable natural gas fuel facilities and infrastructure with energy giants Total (NYSE: TOT) and BP (NYSE: BP). While about 40% of the Clean Energy Fuels gas sold in 2020 came from RNG, it is targeting a 100% mix of RNG at all its fuel stations within the next five years. (see our update below for more details on CLNE’s business and outlook) The stock trades at a relatively high 5.5x forward revenue, but the company’s leading position in the RNG space, the sizable market potential, and regulatory tailwinds under the Biden Administration could make the stock worth a look. Sales are projected to grow by about 10% each year over 20, per consensus estimates, with the company also likely to break even by 2022. Although Clean Energy Fuels’ performance over the last several years has been mixed, with the company posting little growth, things are poised to get better from here. The company is looking to go all-in on RNG, targeting 100% of its supply mix to come from the clean fuel in around five years, compared to just about 40% last year. Sales of RNG are expected to scale up, driven by deals with the likes of Amazon AMZN, Total, and BP, as well as favorable regulation. So what’s the fundamental picture like for CLNE? The company is a leader in the renewable natural gas business, which is seeing a lot of interest given its low environmental impact. See our analysis on Clean Energy Fuels Stock Chances Of Rise for more details. So how is Clean Energy Fuels stock expected to trend in the near term? Is the stock poised to rise further from here, or is a decline looking likely? Based on our machine learning engine, which analyzes Clean Energy Fuel’s historical stock price movements, the stock has a 51% chance of a decline over the next month, after rising by almost 15% over the last five trading days. At one point, the stock was up by over 20% between Thursday and Friday, despite the fact that there wasn’t much meaningful news relating to the company, or the broader oil and gas space. It appears that the stock is gaining the attention of Reddit investors, who have been piling into stocks with relatively high levels of short interest and low stock prices. Some comrades had long ago moved on to the next frontier: Cryptocurrencies and NFTs in the metaverse.Natural gas supply company Clean Energy Fuels (NASDAQ: CLNE) saw its stock rise by almost 15% over the last week (five trading days) outperforming the S&P 500 which has remained roughly flat over the same period. But with inflation running at the fastest pace in almost four decades, the Federal Reserve is forecast to tighten policy - meaning there’ll likely be less money sloshing around the economy that can go into shares of brick-and-mortar video game retailers or struggling movie-theater chains. Sure, a few retail investors made millions of dollars. Right now, I kind of see it as being on the precipice.” Investor Chris Perrotta But when the market falls, they aren’t sure how to short, don’t understand options and when they buy and lose, they tend to think prices will rebound so they hold on, instead of selling out.” “They buy - price goes up, they sell and buy again. “Most retail investors don’t know how to trade this market,” said Larry Tabb, the head of market structure research at Bloomberg Intelligence. Market participation by retail traders has come down from the historic levels during the pandemic - it peaked in the first quarter of 2021 at 24 per cent - to about 18 per cent, according to Bloomberg Intelligence. For now, the small timers who dreamed of beating the big money have gotten a hard lesson about who rules the markets. Robinhood Markets, whose free trading app lured many to the market and set the stage for its own initial offering, has itself become a powerful symbol of the reversal, with its shares 85 per cent below a high in August. WallStreetBets, the Reddit forum that unleashed the GameStop, AMC and “stonks” craze, is getting little attention. But the shift goes beyond profit and loss.
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