Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Clean Energy Fuels Jumped 10.5% on Monday

By Travis Hoium - Jan 25, 2021 at 4:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commodities are up and so is Clean Energy Fuels.

What happened 

Shares of Clean Energy Fuels (CLNE -4.41%) jumped as much as 19.7% in trading on Monday as clean energy stocks had another strong day. Some of the bounce was given back late in the day, but shares closed up 10.5%. 

So what

There wasn't any specific news out from Clean Energy Fuels today. But there was some positive news from the energy industry. Oil prices were up about 1% on Wall Street and natural gas was up 6.9%. 

Natural gas truck on the highway.

Image source: Getty Images.

Natural gas is an input fuel for some of Clean Energy Fuels' business, but it's also a competitor to renewable fuels, which management hopes is the company's future. In that sense, the rise in commodity prices is a long-term opportunity but a short-term headwind. 

Now what

There's not really enough today to change your investment thesis in Clean Energy Fuels. Commodity prices rise and fall and normal volatility is exactly what we're seeing today. 

We need to remember that clean energy stocks have been both volatile and on a strong run the last few months. Today does seem to be a continuation of that exuberance. But it may not last and we shouldn't be surprised if these gains are given back again tomorrow, even if there's no new news about the stock. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Clean Energy Fuels Corp. Stock Quote
Clean Energy Fuels Corp.
CLNE
$4.77 (-4.41%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.