Clean Energy Fuels Corp. CLNE recently declared plans of constructing compressed natural gas (CNG) stations for providing fuel to transit vehicles in Arlington County, VA; Nassau Inter-County Express in Long Island, NY; and North Kansas City School District, which is likely to soon develop into the largest school district in the U.S. Following the news, the company’s shares rallied almost 3% on NYSE.

Notably, North Kansas City School District is expected to produce significant demand for the fuel because of the large-scale transition of school buses to CNG.

Moreover, over the last four months, Clean Energy Fuels inaugurated 14 CNG stations. The company has also added that the stations have been constructed specially to serve heavy-duty trucks. Meanwhile, Clean Energy Fuels announced that it has inked an agreement with PG&E Corporation PCG. Per the deal, Clean Energy Fuels will supply as high as 1.5 million gallons of liquefied natural gas (LNG).  

Situated in Newport Beach, CA, Clean Energy Fuels constructs and operates CNG and LNG fueling stations for transportation vehicles. The company also manufactures equipment and provides technologies used for CNG and LNG applications.

On Aug 5, 2015, Clean Energy Fuels reported a loss of 32 cents, narrower than the Zacks Consensus Estimate of 34 cents. Moreover, over the last four quarters, the company’s average positive earnings surprise stood at 53.86%.    

Currently, Clean Energy Fuels carries a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next one to three months.

Meanwhile, better-ranked players in the energy sector include Alon USA Energy Inc. ALJ and Alon USA Partners LP ALDW. Both the stocks sport a Zacks Rank #1 (Strong Buy).

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