Want Clean Energy? Check These 2 Biofuel Stocks

These words from President Obama at the 2014 Presidential State of the Union address have motivated and moved the American masses to empower themselves to utilize opportunities to improve efficiency and cut energy waste.

Of late, the U.S. is progressively incorporating clean energy methods into its lifestyle. From the city municipalities to top public companies and military administrators, many hands are on deck to help provide future generations a cleaner pollution-free environment.

The President’s Initiative

Last month, Obama showcased a comprehensive set of executive actions and private sector commitments to speed up America’s transition to cleaner sources of energy and ways to diminish energy waste. The blueprint included announcements for several energy projects, new guidelines for distributed energy projects and the creation of an interagency task force to promote a clean energy future for all citizens.

With this, the President anticipates to reduce emissions by 26%-28% below the 2005 levels by 2025; raise renewable energy shares (beyond hydropower) to 20% by 2030; deploy 300 megawatts of renewable energy across federally subsidized housing by 2020; and double energy productivity by 2030.

The Proponents

Riding high on the clean-energy campaign, California recently completed 91 clean-energy projects in the state. This month, Colorado also achieved a similar feat as Aspen became the third U.S. city to power itself with 100% renewable energy.

Additionally, leading automakers like General Motors Company GM, Tesla Motors, Inc. TSLA and Ford Motor Co. F are increasingly focusing on diminishing the pollution quotient raised by their cars.

Even military personnel are not behind. The U.S. military is increasingly using renewable energies and high technologies to curtail the risk of life and dependency on generators and fossil fuels. Positively, the Defense Department is aiming to consume 3,000 megawatts from renewable sources by 2025.

2 Biofuel Stocks to Ignite Your Portfolio

With such noble initiatives in progress, the clean energy market is expected to witness a sharp upward curve. It would be wiser to sense the change and act accordingly.

We present you with two biofuel stocks to bet on amid the unpredictable economic market. Both stocks carry a Zacks Rank #1 (Strong Buy) and have expected long-term EPS growth of 15.00%. Also, both the companies hold a favorable value.

Notably, our Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best upside potential.

Also, these stocks have been witnessing impressive earnings estimate revision activity lately, which implies that the analysts are increasingly bullish on these stocks.

Rentech, Inc. RTK: Based in Los Angeles, CA and founded in 1980, Rentech offers a comprehensive range of integrated fibre services including, wood chipping, operations, marketing, trading and vessel loading. Annually, the company processes roughly 15 million tonnes of wood and bark into high quality wood chips and residual fuels.

Additionally, Rentech manufactures and sells natural-gas based nitrogen fertilizer products across North and South America. Collectively, the company operates 38 facilities dedicated to both the businesses across four countries.  

The company has a Value Style Score of ‘A’ and boasts a positive earnings surprise of 550.0% in the trailing four quarters. 

Renewable Energy Group, Inc. REGI: Incepted in 1996 and headquartered in Ames, IA, the company is one of the leading advanced biofuels producer and developer of renewable chemicals of North America. Renewable Energy Group boasts 11 active biorefineries globally and has rich and diverse thriving intellectual property portfolio.

Over the past decade, the company is a trusted name for the supply of advanced biofuels that matches ASTM (American Society for Testing and Materials) quality standards. Renewable Energy Group sells REG-9000 biomass-based biodiesel to distributors, which is a cleaner burning fuel that enhances energy security, across the United States.

The company has a Value Style Score of ‘B’ and has a positive earnings surprise of 65.5% in the trailing four quarters. 

Moving Forward

The biofuel firms appear to be one of the top performers in the industry with its clean energy pledge. At the same time investors should be better off investing in these priceless stocks to churn attractive yields from the volatile market.

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