In this article, we discuss 5 best ethanol stocks to buy now. If you want to read about some more ethanol stocks, go directly to 10 Best Ethanol Stocks To Buy Now.
5. Green Plains Inc. (NASDAQ:GPRE)
Number of Hedge Fund Holders: 22
Green Plains Inc. (NASDAQ:GPRE) produces, markets, and distributes ethanol in the United States and internationally. It is one of the premier ethanol stocks to invest in. On July 2, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.73, beating market estimates by $0.58. The revenue over the period was $1.01 billion, up over 39% compared to the revenue over the same period last year and beating analyst estimates by $80 million. The firm is based in Nebraska and was founded in 2004.
The ethanol segment of Green Plains Inc. (NASDAQ:GPRE) produces and sells ethanol, including industrial-grade alcohol, distiller grains, and ultra-high protein and corn oil. The agribusiness segment engages in the grain procurement, handling, and storage activities.
At the end of the second quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $172 million in Green Plains Inc. (NASDAQ:GPRE), compared to 20 in the previous quarter worth $252 million.
4. Comstock Resources, Inc. (NYSE:CRK)
Number of Hedge Fund Holders: 25
Comstock Resources, Inc. (NYSE:CRK) is an independent energy company engaged in the acquisition, exploration, development, and production of oil and natural gas primarily in North Louisiana and East Texas. It is one of the top ethanol stocks to invest in. On August 1, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $1.00, beating market estimates by $0.05. The revenue over the period was $946 million, up over 175% compared to the revenue over the same period last year, beating estimates by $318 million.
On September 21, Citi analyst Paul Diamond maintained a Buy rating on Comstock Resources, Inc. (NYSE:CRK) stock and raised the price target to $24 from $17, noting that there was improving clarity surrounding the operational landscape for the firm into 2023.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Comstock Resources, Inc. (NYSE:CRK), with 4.1 million shares worth more than $49.9 million.
3. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients worldwide. The firm is among the best ethanol stocks to invest in. On August 17, the company announced that it had entered into a strategic partnership with animal-free dairy company New Culture to ramp up development and commercialization of alternative dairy products. The partners will work towards joint product development and commercialization.
On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels-Midland Company (NYSE:ADM) stock with an Outperform rating and a $117 price target, noting that the share offered highly competitive dividend growth through the nutrition segment.
Among the hedge funds being tracked by Insider Monkey, Virginia-based firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company (NYSE:ADM), with 1.5 million shares worth more than $113.5 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company (NYSE:ADM) was one of them. Here is what the fund said:
“Archer-Daniels-Midland Company (NYSE:ADM) is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
2. Valero Energy Corporation (NYSE:VLO)
Number of Hedge Fund Holders: 43
Valero Energy Corporation (NYSE:VLO) manufactures, markets, and sells transportation fuels and petrochemical products. The company is one of the most prominent ethanol stocks to invest in. Valero Energy Corporation (NYSE:VLO) has been one of the biggest beneficiaries of the oil reserve releases of the US government, taking nearly half the crude offered, an analysis of Department of Energy data by news agency Reuters shows. It is based in Texas and was founded in 1980. Valero Energy Corporation (NYSE:VLO) was formerly known as Valero Refining and Marketing Company.
On August 24, Piper Sandler analyst Ryan Todd maintained an Overweight rating on Valero Energy Corporation (NYSE:VLO) stock and raised the price target to $150 from $142, highlighting an increasingly constructive outlook for the renewable diesel and biodiesel market.
At the end of the second quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $759.8 million in Valero Energy Corporation (NYSE:VLO), compared to 47 the preceding quarter worth $438 million.
1. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ) produces, imports, markets, and sells beer, wine, and spirits. The firm features on the list of best ethanol stocks to invest in. The company recently announced that it had partnered with beverage giant Coca-Cola to launch the Fresca Mixed line of vodka spritz as part of its spirits-based, ready-to-drink (RTD) cocktails in the U.S. The RTD market is expected to grow to $43.6 billion over the next five years, up from $26.4 billion in 2021.
On September 15, JPMorgan analyst Andrea Teixeira maintained an Overweight rating on Constellation Brands, Inc. (NYSE:STZ) stock and raised the price target to $287 from $263, highlighting that the beer setup was largely favorable in the second quarter.
At the end of the second quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Constellation Brands, Inc. (NYSE:STZ), compared to 41 in the preceding quarter worth $982 million.
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