11 Best Ethanol Stocks To Invest In Now

1. Valero Energy Corporation (NYSE:VLO) 

Number of Hedge Fund Investors: 49

Valero Energy Corporation (NYSE:VLO) is one of the largest global refiners and ethanol producers. The company operates 14 ethanol plants across the US and Canada converting corn into fuel and other products.

In the ethanol segment, Valero Energy Corporation (NYSE:VLO) is focusing on its ability to optimize production and reduce operating costs, which are critical factors in maintaining profitability and competitiveness. In Q3 the company’s ethanol production volumes averaged 4.6 million gallons per day, a significant increase of 255,000 gallons per day from the same period in 2023. This growth in production volumes was driven by the company’s strategic investments in capacity expansion and technological advancements. In Q4, the company expects to produce 4.7 million gallons per day, with operating expenses averaging $0.37 per gallon, including $0.05 per gallon for noncash costs such as depreciation and amortization.

Looking ahead, Valero Energy Corporation (NYSE:VLO) is poised for further growth in the ethanol business. The company continues to invest in state-of-the-art production technologies and facilities that not only increase output but also improve the quality and sustainability of its ethanol products. The company is also exploring new market opportunities and expanding its distribution network to reach more customers and regions. Additionally, Valero Energy Corporation (NYSE:VLO) is committed to research and development, focusing on innovative processes that can further reduce costs and enhance environmental benefits.

While we acknowledge the potential of Valero Energy Corporation (NYSE:VLO) 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 VLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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