Winning Stock Forecast: Clean Energy Fuels Corp. (NASDAQ:CLNE) Returns Up To 44.1% In A Month As Forecasted

“This significant investment by Total, whose ambition is to become the Responsible Energy Major, is a confirmation of Clean Energy’s business plan to expand the use of clean natural gas as a transportation fuel, especially by those vehicles which consume the most fuel and cause the most pollution.”  -Andrew J. Littlefair, CEO and president of Clean Energy.

Source: smarteranalyst.com

Winning Stock Forecast

Incorporated on April 17, 2001, Clean Energy Fuels Corp. (NASDAQ:CLNE) is a transportation-focused natural gas provider supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations in the United States and Canada. On May 10th, Clean Energy Fuels reported first-quarter earnings and announced that oil and gas giant Total SA was taking a 25% stake in the company. The stock price has surged by 77% since then thanks to climbing oil prices.

Diesel prices increased by 10% and crude futures are up 16% since March 1st and CLNE has surged 136% in the same time as a result. Natural gas is an alternative for diesel, so when diesel prices increase, many opt to take advantage of the cleaner and cheaper option instead. The natural gas is promised to have great potential of demand in the future. Currently natural gas accounted for less a quarter of the energy consumption. According to BP’s Energy Outlook 2035 forecast, a third of the probable rise in global energy demand will be supplied by natural gas. The market opportunity owes much to its intrinsic properties: natural gas is cleaner than coal or oil, and also more readily available and affordable while alternatives like EVs and hydrogen have not been road ready especially for heavy transit for the near future.

On June 22nd, OPEC announced a plan to increase oil up to an additional 1 million barrels of oil per day over the next month. The market feared that OPEC would raise the target higher, resulting in crude oil oversupply. On the other side, market projections showed that the current output would fail to meet the demand in the upcoming months. This provided bullish outlook for Clean Energy since relatively higher diesel and gasoline prices would push commercial vehicle fleet operators switch to natural gas-powered. Additionally, following the eventual ratification of the COP21 Agreement in Paris and its successors, there will most likely be tougher emission standards leading more people to adopt clean energy such as natural gas.

Source: ttnews.com

On May 9th, the company entered the agreement with Total SA where Total will buy 25% of Clean Energy’s outstanding stocks and support the company to “accelerate the remarkable innovation capacities”. The acquirer also agreed to provide $100 million in credit support for Clean Energy’s leasing program to accelerate adoption of natural gas trucks. On June 22nd, the company announced the opening of a compressed natural gas station in Kansas that would provide over 1.2 million-gallon equivalents of natural gas to 170 transit buses and refuse vehicles, which encouraged investors to be positive about the company’s future prospects.

Analyst recommendations

Source: Yahoo Finance

Currently, analysts from Yahoo Finance monitoring CLNE are split between a buy or hold rating and had the same opinions for May and June. And in the past one month, the stock perform strongly as we expected.

I Know First Algorithm Success with CLNE

On May 27th, 2018, I Know First Algorithm gave a very bullish forecast on CLNE for the upcoming month with a signal of 101.22. The predictability also showed confidence that CLNE stock price was very likely to soar with a one-month predictability of 0.13. Our forecast was in accordance with the actual stock performance. In the forecasting time period, CLNE rose 44.11%.

Go here to read how to interpret this diagram.

 

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