6 Stocks to Benefit From Truckers' Switch to Natural Gas
Company profile: Clean Energy, with a market value of $1.6 billion, sells natural gas vehicle fuels to about 320 fleet customers in North America, by owning, operating, or supplying compressed natural gas or liquified natural gas to 176 fueling stations. The company primarily builds these fueling stations for municipal fleets, such as buses and taxis, but it plans to open 70 public CNG stations by the end of the year at truck stops in 33 states and another 80 in 2013.
Investor takeaway: Its shares are up 46% this year and have a three-year, average annual return of 34%. Analysts give its shares one "buy" rating, six "holds," and one "weak hold," according to a survey of analysts by S&P. Analysts estimate that it will lose 63 cents per share this year and 32 cents per share in 2013.
5. Quantum Fuel Systems Technologies Worldwide(QTWW)
Company profile: Quantum, with a market value of $31 million, develops natural gas fuel cells and renewable energy-generation systems and services for use in industrial vehicles and power generators. It also makes high-pressure, CNG storage tanks for use on heavy- and light-duty truck fleet vehicles.
Investor takeaway: Its shares are down 11% this year and have a three-year, average annual loss of 65%. Analysts give its shares one "hold" rating, according to a survey of analysts by S&P. Analysts estimate that it will lose 42 cents per share this year but turn it around next year and earn 7 cents per share.
6. Westport Innovations(TSX:WPT)
Company profile: Westport, with a market value of $1.6 billion, develops engines that operate on compressed natural gas, liquefied natural gas, hydrogen, and renewable natural gas fuels, such as landfill gas, using its proprietary fuel injection technology. It is also in an agreement with Cummins to develop CMG-powered truck engines which will result in the manufacture of the Westport HD 15-litre engine in a Cummins factory in Jamestown, N.Y.
Investor takeaway: Its share are traded on the Toronto Stock Exchange. They are down 12% this year, but have a three-year, average annual return of 80%. Analysts give its shares five "buy" ratings, five "buy/holds," two "holds," and three "weak holds," according to a survey of analysts by S&P. Analysts estimate it will lose 55 cents per share this year and turn it around to earn 88 cents per share in its fiscal year 2014.