On Oct 9, Zacks Investment Research upgraded
Green Plains Renewable Energy Freescale
) to a Zacks Rank #1 (Strong Buy).
GREEN PLN RENEW (GPRE): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Upgrade?
The dealer of ethanol Green Plains Renewable has delivered
positive earnings surprises in the last 3 quarters with an
average beat of 418.52%. The long-term earnings growth of the
company is 8.83% on the back of sales growth of 64.48%.
The company acquired the Atkinson ethanol plant for $15 million
and invested $18 million in a unit train terminal in Birmingham.
These steps will allow the company to sustain its momentum.
The consistent capital outlay will enable Green Plains Renewable
Energy to increase its grain storage capacity around its ethanol
plants, enhance its corn oil extraction capability at the
Atkinson plant and install selective milling technology or fine
grind at a third plant in the fourth quarter. In fact, the
company has plans to spend $20 million in 2013.
The company's strong financial standing has also helped it to
lower its outstanding debt by $100 million from Jun 30, 2012 to
Jun 30, 2013. The reduction in debts has led to a 21.3%
year-over-year decline in interest expenses to $7.76 million.
The Zacks Consensus Estimate for 2013 increased 34.3% in the last
90 days to 70 cents per share, reflecting year-over-year growth
of 300.7%. For 2014, the consensus increased 61.3% over the same
time period to $1.50 per share, reflecting growth of 59.36%.
Other Stocks to Consider
Besides Green Plains Renewable, a few other companies in the
renewable energy sector are also performing well and have a
favorable Zacks Rank. The stocks worth considering are
JA Solar Holdings Co., Ltd.
JinkoSolar Holding Co.
). JA Solar Holdings Co. and JinkoSolar Holding Co., Ltd. have a
Zacks Rank #2 (Buy) while SunPower Corporation has a Zacks Rank
#1 (Strong Buy).