Gevo Inc (NASDAQ: GEVO) is headed for the top in the market this morning after the company announced that it would be releasing its financial results for the fourth quarter and full year soon. Here’s what’s going on:
Skip to What You Want to Read
- Gevo to Release Earnings Soon
- What Does GEVO Do?
- Why Investors Are So Excited
- What Analysts Think About GEVO Stock
- Final Thoughts
Gevo to Release Earnings Soon
As mentioned above, Gevo is screaming for the top in the market this morning as investors await the company’s fourth quarter and full year earnings report. In a press release issued this morning, the company said that the results will be coming on March 17, 2021 at 4:30 p.m. EST.
If you would like to participate in the conference call about the earnings release, you can do so by using the following information:
- United States Callers. (833) 729-4776
- International Callers. (830) 213-7701
- Access Code. 3178466#
What Does GEVO Do?
GEVO is a clean fuels company. For several years, the company has worked to perfect a technology that allows it to convert feedstocks like waste wood and other materials into clean-burning fuels.
To-date, the company’s fuels have been used in several off-road vehicles. However, it’s claim to fame is its renewable aviation fuel, which has been used in multiple commercial flights and continues to be met with strong demand.
Why Investors Are So Excited
Recently, there have been several reasons to be excited about Gevo stock. The company has signed multiple agreements that will result in the sale of massive amounts of its aviation fuel.
Moreover, in order to meet the demand for its fuels, GEVO has been working on expanding its infrastructure. In fact, in a recent press release, the company said that it is in the process of building its Net Zero 1 production facility. Not only will the company be producing its clean, renewable fuels in this facility, it will do so with a net zero carbon emission profile.
The fact that GEVO is seeing growth in demand and expanding infrastructure is only a piece of the excitement. The other piece has to do with a political climate change.
With President Joe Biden in office and democrat control over Congress and the Senate, many expect that we will see somewhat of a clean energy revolution in the United States. After all, the democrat party has long been proponents of clean energy.
As a result, companies that operate in clean energy will likely have access to more grant funding, reduced tax burdens, and increased demand as tax credits are offered to those that take advantage of clean-energy products.
Now, there is an argument that with electric vehicles hitting the stage, there will be no need for GEVO fuels. However, there are big holes in that argument:
- Aviation. Sure, electric engines are being put in cars and trucks, but electric airplanes are still far off, meaning that there will likely be demand for the company’s clean aviation fuels for the long haul.
- Charging Times. There’s also an argument that electric vehicles, as they stand now, simply aren’t practical. Ultimately, it takes quite a while to charge an electric vehicle, but only a few minutes to fill a gas tank. As a result, consumers may be reluctant to switch to electric options, especially if there’s a clean fuel available to them.
- Tradition. Human beings are creatures of habit. We enjoy traditions, and the traditional vehicle will likely be around for the long haul. However, clean fuel is needed to keep these vehicles around, which will likely lead to further demand for GEVO fuels.
What Analysts Think About GEVO Stock
Analysts seem to love GEVO stock. In fact, according to TipRanks, there are two analysts covering the stock, both of which rate it a Buy.
Moreover, price targets on the stock range from $16 to $18, with a median target of $17, representing the potential for gains in multiples.
The bottom line here is simple, GEVO is firing on all cylinders at a time when it has the potential to see dramatic growth in demand for its clean fuels. It is already seeing strong demand for its aviation fuel, and in the future, clean gasoline may be the ticket to riches.
No matter how you slice it, the GEVO story is one that’s filled with opportunity, making the stock one for the books.