12 Best Ethanol Stocks to Buy According to Hedge Funds

6. The Andersons, Inc. (NASDAQ:ANDE)

Number of Hedge Fund Investors: 21

One of the  Best Ethanol Stocks, The Andersons, Inc. (NASDAQ:ANDE) is a diverse firm that operates in the trade, renewables, nutrient, and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and globally. It buys and sells basic commodities and produces renewable fuels like corn-based ethanol. The company has four ethanol plants, all of which are strategically located in the Eastern Corn Belt, and generates ethanol for industrial and fuel uses.

This means that depending on the operational environment, the company’s top and bottom lines may vary significantly. Nonetheless, The Andersons, Inc. (NASDAQ:ANDE) has increased its earnings over time. The company’s 2022 and 2023 net incomes were $119 million and $101 million, respectively. In the first nine months of 2024, the net income was $69 million.

For many years, The Andersons, Inc. (NASDAQ:ANDE) has also consistently paid a dividend. After becoming public in 1996, the company announced its 113th consecutive dividend hike in late 2024.

Even though ethanol board crush margins decreased by $0.16 per gallon, The Andersons, Inc. (NASDAQ:ANDE)’s Renewables segment produced record amounts of ethanol in Q4 2024 due to better yields and lower controllable costs. Price deterioration was mitigated by a lower corn base, resulting in Q4 EBITDA of $40M and full-year adjusted EBITDA of $189 million. In 2025, higher ethanol pricing and better margins should be supported by increased corn acreage, seasonal demand, and industry maintenance cycles.