4-Star Stocks Poised to Pop: Clean Energy Fuels

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, alternative-fuel provider Clean Energy Fuels (NAS: CLNE) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Clean Energy's business and see what CAPS investors are saying about the stock right now.

Clean Energy facts

Headquarters (Founded)

Seal Beach, Calif. (2001)

Market Cap

$931 million

Industry

Oil and gas refining and marketing

Trailing-12-Month Revenue

$263.3 million

Management

Co-Founder/CEO Andrew Littlefair

CFO Richard Wheeler

Return on Equity (Average, Past 3 Years)

(12.4%)

Cash/Debt

$35.3 million / $90 million

Competitors

Exterran Holdings (NYS: EXH)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,187 members who have rated Clean Energy believe the stock will outperform the S&P 500 going forward. These bulls include Clint35 and ravens9111.

Just last month, Clint35 tapped Chesapeake Energy's (NYS: CHK) recent $150 million investment in Clean Energy as a particularly bullish sign:

I've liked this company since I first heard about it a few years ago. I just wasn't sure if they could accomplish what they were trying to accomplish. Now that they've gotten some help from Chesapeake Energy my doubts are gone. I think this will be at least a $50 stock. It's just a question of when.

Over the next five years, in fact, Clean Energy is expected to grow its bottom line at a brisk rate of 30% annually. That's faster than that of rival Exterran (25%), as well as other alternative fuel plays like FuelCell Energy (NAS: FCEL) (10%) and Fuel Systems Solutions (12%).

CAPS member ravens9111 elaborates on the Clean Energy bull case:

The best fuel alternative is to run our vehicles from our own fuel, LNG. ... Electric vehicles sound great in theory, but the technology is not there yet. Not to mention, the cost per vehicle makes it difficult for most to buy a new electric car. CLNE will make it more affordable to convert your gas engine to run on LNG. It is really a no-brainer to make this happen. We will not only see the benefit of lower fuel prices from domestic sources, but reliance on foreign oil will be in check. Instead of being a net importer of foreign oil, we could become the largest net exporter of LNG. ... CLNE will reap the benefits, but we all will if you own the stock or not.

What do you think about Clean Energy, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Clean Energy?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chesapeake. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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