10 Best Green Energy Penny Stocks to Buy Now

1. Clean Energy Fuels (NASDAQ:CLNE)  

Number of Hedge Fund Holders: 24  

Market Capitalization as of September 4: $670.28 Million  

Clean Energy Fuels (NASDAQ:CLNE) specializes in Renewable Natural Gas (RNG) and is the largest provider of RNG in North America. The RNG sector is experiencing increasing demand due to its environmental benefits and is seen as a practical solution for decarbonizing the trucking industry, which is a significant source of emissions. The company leverages organic waste to produce RNG, which reduces the environmental impact associated with fossil fuels.

The demand for RNG is expected to rise as more industries and governments commit to reducing carbon footprints. According to a report by Business Research Insights, the global RNG market size was valued at $7.35 billion in 2024 and is forecasted to reach $148.7 billion by 2032, exhibiting a CAGR of 45.6%. This growing acceptance and adoption could drive substantial revenue growth for Clean Energy Fuels (NASDAQ:CLNE).

In Q2, Clean Energy Fuels (NASDAQ:CLNE) reported an adjusted EBITDA of $18.9 million, an increase from $12.1 million in the previous quarter. The company generated $21.4 million in operating cash flow in the first half of 2024, a significant turnaround from the $7 million outflow during the same period in 2023. As of June 30, 2024, Clean Energy Fuels holds over $250 million in cash and equivalents, alongside $308 million in working capital.

Clean Energy Fuels (NASDAQ:CLNE) presents a compelling investment opportunity due to its leadership in RNG. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $7.22, which represents an 89.66% upside potential from its current level. As of the second quarter, Clean Energy Fuels (NASDAQ:CLNE) stock is held by 24 hedge funds and the stakes amount to $47.54 million. Arosa Capital Management is the largest shareholder in the company with stocks worth $8.57 million as of June 30.

While we acknowledge the potential of Clean Energy Fuels (NASDAQ:CLNE) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the stocks on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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