Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Clean Energy Fuels Jumped 25.1% Today

By Travis Hoium - Feb 3, 2021 at 2:26PM

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

A Wall Street analyst gave this stock a boost today.

What happened 

Shares of Clean Energy Fuels (CLNE 2.01%) jumped as much as 25.1% in trading on Wednesday after getting a positive rating from an analyst. Shares held most of their gains throughout the day and were up 22.8% at 3 p.m. EST. 

So what

Analysts at Credit Suisse initiated coverage on Clean Energy Fuels with an outperform rating and a $17 price target. That's about a 35% upside from where shares are currently trading.

Natural gas truck driving down the road.

Image source: Getty Images.

Joint ventures to unlock renewable natural gas are seen by analyst Manav Gupta as a very bullish sign for the company long-term. And with the federal government and the state of California pushing cleaner fuels, there could be huge tailwinds for Clean Energy Fuels' business. 

Now what

Analyst upgrades and downgrades can often affect stocks in the short term, but they aren't what drives a stock long-term. Investors should focus on the underlying business, and in Clean Energy Fuels' case there's both opportunity and risk. The company hasn't been able to make a great business out of natural gas fuel thus far, but its transition to renewable natural gas is aimed at giving the company a new supply and a new source of subsidies given the need for clean energy credits in the U.S. That could ultimately lead Clean Energy Fuels to be a profitable renewable energy stock, but management has a lot to prove before this company is a no-brainer buy for energy investors.  

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.
$4.57 (2.01%) $0.09

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

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.