Why is Clean Energy Fuels stock going up? The stock, which trades on the Nasdaq exchange under the ticker symbol “CLNE.” jumped nearly 25 percent on Nov. 23 and closed at $4.40, which brought the stock’s gains to about 90 percent this year.
Encouraged by the surprise rally on Nov. 23, many investors woke up on Nov. 24 wanting to be part of Clean Energy Fuels. CLNE stock rose nearly 20 percent in pre-market trading. When regular trading started, CLNE stock immediately rose and traded at $4.95. Soon after, the stock jumped 15 percent to trade above $5.
As its stock spikes, Clean Energy Fuels has become the talk on many online investor forums like Stocktwits. Many CLNE stock bulls on Stocktwits think that there will be a long rally in the stock.
What does Clean Energy Fuels do?
Clean Energy Fuels provides natural gas fueling solutions. Compared to other fossil fuels, natural gas is considered to be relatively clean. The company wants to replace gasoline with natural gas as fuel for vehicles. Clean Energy Fuels thinks that reducing pollution in the transportation industry will help curb climate change.
Why is CLNE's stock price surging?
The coming changes in the White House have renewed interest in green energy stocks from those producing alternatives energy to those making machines that use renewable energy. The government's support for the green energy sector has been minimal under the Trump administration. However, the situation will likely change when Joe Biden takes the office. In fact, Biden has promised to take the U.S. back to the Paris Agreement on climate change mitigation.
Many investors think that the Biden administration will bode well for green energy companies, which is bringing more attention to stocks like CLNE. Since many of the better-known names in the alternative energy space have spiked and now cost more, investors are hunting for affordable clean energy stocks. CLNE stock is one of the beneficiaries as investors rush to low-dollar-value stocks in the alternative energy space.
What is CLNE stock prediction?
Several Wall Street analysts have weighed on CLNE stock with price predictions. Before the latest rally kicked off, the most bullish analyst predicted 34 percent upside potential for CLNE stock from the current level to $6. Now, the stock is close to breaching the target. The most bearish analyst predicts a $5 price for Clean Energy Fuels stock.
CLNE's stock price will likely keep rising. The surprise rally will likely force short-sellers to rush to cover their positions to limit losses.
Is CLNE stock a good buy?
It’s a good idea to have some exposure to climate change stocks. The future looks promising for Clean Energy Fuels. The need to curb climate change will only continue to drive the demand for alternative fuels in vehicles for a long time.
It’s also encouraging to see French oil giant Total buy into Clean Energy Fuels’ vision. Total made an investment of more than $83 million to purchase a stake of 25 percent in CLNE stock. Also, Total extended a $100 million credit line to Clean Energy Fuels to support setting up more natural gas fuel stations.