12 Best Ethanol Stocks to Buy According to Hedge Funds

9. Ultrapar Participações S.A. (NYSE:UGP)

Number of Hedge Fund Investors: 11

Market Cap as of April 3, 2025: $3.31 billion

Ultrapar Participações S.A. (NYSE:UGP) ranks ninth on our list of Best Ethanol Stocks. It invests its own capital in services, commercial, and industrial operations by subscribing to or acquiring shares of other firms. The company operates three business segments: gas distribution, fuel distribution, and storage. Ultragaz (gas distribution segment) sells LPG to residential, commercial, and industrial customers, mostly in Brazil’s South, Southeast, and Northeast areas. The fuel distribution segment distributes and markets gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for automobiles, and lubricants, as well as other associated activities, throughout Brazil. The storage section operates liquid bulk terminals mostly in Brazil’s Southeast and Northeast regions.

Total revenue was R$35,401 million, up 6% from Q4 2023, owing primarily to greater revenues from Ipiranga and Ultragaz. In comparison to Q3 2024, net sales remained steady. In 2024, net revenues reached R$133,499 million, a 6% increase over 2023. Ultrapar Participações S.A. (NYSE:UGP) continued to invest in development. The firm invested in new Ultracargo ports and infrastructure projects in Ipiranga.

The company retained solid operational cash flow, generating R$3.736 million, allowing for expanded investments while keeping financial debt at manageable levels. Furthermore, the Board of Directors approved dividend payments totaling R$769 million, which shows Ultrapar Participações S.A. (NYSE:UGP)’s devotion to providing value to shareholders.