12 Best Chemical Stocks to Buy According to Analysts

7) REX American Resources Corporation (NYSE:REX)

Average Upside Potential: 31.11%

Number of Hedge Fund Holders: 8

REX American Resources Corporation (NYSE:REX) produces and sells ethanol in the US. The company continues to progress on the expansion of its ethanol production facility at the One Earth Energy facility in Gibson City, IL. It anticipates completing the facility’s expansion in the middle of 2025, which can increase production capacity from 150 million gallons per year to 175 million gallons per year. After achieving this target, the company plans to initiate further permitting of the facility to produce 200 million gallons per year of ethanol.

REX American Resources Corporation (NYSE:REX) anticipates that this will not require additional material capital expenditures. Through the end of Q3 2024, capital expenditures associated with the One Earth Energy carbon capture and sequestration project came in at $52.9 million, and expenditures for the expansion of ethanol production capacity stood at $50.2 million. REX American Resources Corporation (NYSE:REX)’s combined capital spending of $103.1 million remains on the plan, and it is still budgeting a total spend of $165 million – $175 million for these projects.

The company continues to produce outsized positive results throughout market conditions as a result of focused ethanol production operations. As REX American Resources Corporation (NYSE:REX) emphasizes on planned increased production capacity which is expected to come online next year, it is optimistic about the expected step up in earnings potential from its expanded ethanol production operations.