First Solar, Inc. (FSLR), SunPower Corporation (SPWR), Green Plains Renewable Energy Inc. (GPRE): Can Renewables Renew the Life of Your Portfolio?

Ethanol is a fuel that is produced from biomass, and the sugars found in crops such as corn. The company has the capacity to produce more than 740 million gallons per year.

Sales at this biofuel company sat at just $24 million in 2007 and have since grown to $3.5 billion. The company, quite unfortunately, only generated about $11.8 million in net income from that huge sales number. At least we know there is a lot of room for improvement.

Analysts see some growth occurring at the company in 2013 (I should point out only two analysts cover the stock). On average, they have an EPS estimate of $0.52. That’s enough for a 33% boost over the prior year. Projected performance numbers in 2014 are back to dropping though as a single analyst believes $0.33 is the likely EPS.

Investor takeaway

I would avoidGreen Plains Renewable Energy Inc. (NASDAQ:GPRE) at the moment. One of the main reasons for that is due to the effects that biofuels are having on the world. While they may by reducing carbon emissions (some debate they are not), they do use up many crops that could be used for eating, particularly in impoverished nations.

First Solar, Inc. (NASDAQ:FSLR) has those unattractive analyst estimates, and they definitely make me shy away from the stock. I’d probably take a little deeper of a look if the company was expected to at least stay stagnant over the next five years.

If you want into renewables, then there’s no doubt that SunPower Corporation (NASDAQ:SPWR) is an excellent starting point. Analysts believe it will grow, and there’s plenty of houses around the United States that this company could slap solar panels onto.

The article Can Renewables Renew the Life of Your Portfolio? originally appeared on Fool.com and is written by Ash Anderson.

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