Is CLNE Stock a Solid Long Term Investment?

stock market

Clean Energy Fuels is a company that is currently traded on the NASDAQ as CLNE. Just as the name implies, the company deals with finding better ways to create and utilize energy in order to create fuel for the general public. The thing you’re probably interested in is whether or not they are a potentially good fit as a long-term investment option and if so, what are some of the risks involved? Fortunately, most of your questions can be answered by diving deeper into the company as well as the way that their stock has performed in the past. Of course, it wouldn’t be complete without also including advice from stock market analysts along with their expectations of how the stock is likely to perform in both the short-term and long-term.

About Clean Energy Fuels

This is a company that remains relatively small (as these types of companies go), with just under 500 employees. Founded in 2001, the company has its headquarters in Newport Beach, California. Since the company was founded, they have focused on finding better ways to create energy that don’t include using traditional fossil fuels so that reliable, affordable energy can be developed for people all over the globe without relying on things that are harmful to the environment. It’s a tall order and at times, it’s a difficult prospect to see to fruition. Nevertheless, the company has managed to stay the course for more than 20 years now. The question is, what does their future look like? Are they a solid long-term investment or would you be better off spending your money on something else? Currently, you can purchase a share of their stock for only $7.95, making it an absolute steal. It’s also worth noting that their stock is currently up by 13% over the last full day of trading. The question is, what does that mean for you as an investor, especially with regard to their ability to remain a solid option years into the future? In order to answer that question, there are a few other points that have to be considered.

Current Value

You might be interested to know that despite the fact that the company tries to be widely known for creating clean energy solutions that have nothing to do with the production of oil and gas, they are also currently very much involved in its production. In fact, they are the largest supplier of traditional fossil fuels in the United States. Is this a bad thing when you’re talking about their potential to make you money years down the road? Not necessarily. It is interesting to note that they do a lot of talking about creating fuel that doesn’t harm the environment, yet they are absolutely, unequivocally the company that provides the most oil and gas to everyone else throughout the entire country. In fact, they provide an overwhelming amount of this material to other large corporations and commercial entities. Truth be told, if you’re dealing with a fleet of some type, such as at an airport, any type of transit authority, or something similar, then you can almost bet that they are getting their fuel from this company.

That little detail aside, it’s important to take a look at how their stock has been performing over the course of the last few months. They have been on a remarkable upswing since late February. As a matter of fact, their stock dipped significantly in February from the beginning of the month to its end, then took a dramatic upswing again at the beginning of March. Since that time, it’s only been getting stronger. As a matter of fact, they’ve been outperforming virtually everyone else in their particular market, making them one of the top performers of their type for the last couple of weeks. Even more importantly, their stock is expected to continue to increase dramatically over the course of the next three months. Stock market analysts widely agree that it will continue to go up throughout the end of April and then increase even more throughout the remainder of the same 90-day time span, although they believe that its increase won’t be quite as dramatic after the end of April. Does that mean that it’s time for you to start taking them seriously as a long-term investment option? That’s not a question that can be answered until there’s a little more information known about the subject.

Further Review

One of the ways that the company uses their influence to create cleaner energy than a lot of other companies out there is through the use of natural gas. At the moment, they’re providing a great deal of their fleet vehicles with natural gas while simultaneously working on other energy solutions that can be used in the future. Of course, all of this costs money. There’s nothing cheap about anything in the oil and gas industry, and anything that involves producing some type of energy that burns cleaner and is less harmful to the environment costs even more. As a result, trading has at times dipped to 47.7% below average over the course of the last 90 days. That’s enough to give a lot of potential investors cause for concern. That being said, most stock market analysts also believe that the company is on the verge of extreme potential for growth, something to the tune of growing by more than 74%.

If you were to invest in the stock today, you could get it for less than $10 a share. If it increases by more than 74% within the next six months to a year, you could potentially enjoy a rather significant payday. The bigger question is, what could potentially happen if you decide to hold on to that stock for a little bit longer, say somewhere between three and five years? Is there a chance that you could make even more money or would you be better off to sell the stock long before it ever gets to that point? As you probably are already well aware, there’s nothing that’s entirely cut and dried when it comes to the stock market. As a result, answers aren’t always so black and white as they may at first seem. That’s why you need to know as much about any stock you plan to invest in as you can possibly learn.

Potential risk

It’s already widely known that the stock market always carries a certain amount of risk. If you want to be involved with trading, it’s something that you can’t get away from entirely. It just isn’t possible. The truth of the matter is that investing in the stock market is all about mitigating risk so that you don’t spend any more money than you have to without a fairly significant idea that you’re going to make money in the long run. As a result, a lot of stock market analysts grade individual stocks based on their potential risk.This particular stock is graded as a medium risk. If you are an investor, that means that the overwhelming majority of stock market analysts believe that this is a fairly safe stock to invest in, at least for the time being. The question is, what should you do if you want to use it as a long-term investment? If you’re planning on holding on to the stock for a few years, what type of risk are you looking at then? While it’s worth noting that anything can happen in the stock market, most analysts agree that this stock is likely to go up.

At the moment, you can buy it for just over $7 per share, as previously discussed. Stock market analysts believe that within the next 90 days, that same stock will be worth a great deal more money, speculating that it will go up by approximately 38%. Most analysts believe that the stock will eventually be worth somewhere between $9 and $12 by the end of the aforementioned three-month time span. Granted, that doesn’t seem like a great deal of money. However, when you consider the fact that you’re talking about only a 90-day time period, it might spell promising things for a stock that you want to keep in the long-term. The thing that you have to remember is that there is always a lot of risk in the stock market, especially where oil and gas companies are concerned. Why is this so? The company itself can do everything right and it can still find itself on the wrong end of a day in the stock market. That’s because oil and gas companies are acutely dependent on world events, much more so than most other companies. That’s precisely why things like the price of oil and gas as well as the events which are currently going on in Ukraine can have a dramatic impact on the stock market, especially with companies that are involved in this particular industry. That means that companies like this are much more at the mercy of things that they really have no control over than a lot of other types of companies. That will always be a factor that you’ll have to consider when deciding whether or not to spend your money on them.

Potential for Success

Even though there is a certain amount of volatility involved with this or any other company like it, this particular company does have things going for it that a lot of its competitors don’t. For example, they’re looking into a program that will allow them to convert tractor trailers for natural gas, something that virtually none of their competitors are currently doing. That virtually guarantees that the company will continue to remain relevant for the next several years, as this is one major issue in the industry that almost no one else has decided to tackle thus far. Tractor trailers are absolutely essential when it comes to getting supplies from one location to the next. At the same time, they use an enormous amount of fuel, making them one of the biggest offenders when you’re looking at the health of the environment. Having a program in place that can convert them for natural gas might make them more fuel efficient and it could potentially mean that companies are spending less money on keeping these tractor trailers on the road.

By the same token, it’s much healthier for the environment. As a result, this company has more or less cornered the market on this particular issue and they’ve done a great deal of research into the matter that solidifies their position. As a matter of fact, they’re so far ahead that even if another company were to come along with the express purpose of tackling this issue, they would likely struggle to keep up. What does all of this mean for you? It means that the company is on fairly solid ground right now and they’re likely to continue to remain that way for the foreseeable future. Programs like converting tractor trailers to natural gas also means that they’re likely to get more business and become even more valuable within the next few years. This could mean good things for you if you want to hold on to their stock for a while. As a matter of fact, you would probably be doing yourself a favor to snatch up as many shares as you possibly can at the current price and then hold on to them for at least the next few years in order to see how things go. There’s a decent chance that you might be able to make a lot of money as a direct result.

Similar Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.