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Is Cosan S.A. (CSAN) the Best Oil and Gas Penny Stock to Invest in Now?
Is Cosan S.A. (CSAN) the Best Oil and Gas Penny Stock to Invest in Now?

Yahoo

time26-04-2025

  • Business
  • Yahoo

Is Cosan S.A. (CSAN) the Best Oil and Gas Penny Stock to Invest in Now?

We recently published a list of . In this article, we are going to take a look at where Cosan S.A. (NYSE:CSAN) stands against other best oil and gas penny stocks to invest in now. The oil and gas sector faces a pivotal moment in 2025 as it deals with complex dynamics from global tensions, evolving policy directions, and rising innovation. The stable pricing in 2024, after many decades, now faces hurdles due to geopolitical stresses, energy transition demands, and economic shifts. Companies are keeping tight capital control while boosting tech productivity, as analysts predict oil will stay between $70 and $80 per barrel. However, geopolitical instability and unpredictability could push prices higher. Despite these obstacles, operations have advanced as the sector's capital spending has increased 50% from 2020. Meanwhile, returns are on the upswing as businesses focus on high-performing assets and refine their portfolios. Many companies are betting on digital and green tech—carbon capture, hydrogen, and data-driven exploration—as part of a wider clean energy push. Global oil trade issues have shifted focus to natural gas as a second key revenue source, thus, gas prices have jumped lately. According to Yahoo Finance data, LNG futures are up nearly 40% in six months and 91.65% year-over-year at Henry Hub, thanks to low stockpiles, winter demand, and rising LNG exports. Although market instability persists, as recent OPEC+ supply boost and US-China trade tensions have pushed down crude prices. As of April 2025, West Texas Intermediate (WTI) crude sits near a three-year low of $61.5 per barrel. The US Energy Information Administration (EIA) sees an average of $63.88/bbl this year, further dropping to $57.48 in 2026. This decline, plus tariff hurdles and export problems, might squeeze US oil output since profit thresholds sit between $61-$70/bbl. This shows how even major forecasters are scaling back amid trade fights and project holdups. Now, the trend has shifted to natural gas as the growth driver for the oil and gas industry. Europe remains central to global LNG trade, taking 55% of US LNG exports in 2024, per LSEG data. As seen last December, 69% of US LNG shipments (5.84 MT) went to Europe, up from November's 5.09 MT, driven by winter needs and limited Russian supply. As trade tensions add complications, China's 15% tariff on US LNG threatens new deals despite existing contracts. The outlook is mixed but hopeful as oil demand rebounds post-pandemic and a global boost in energy diversification. Although solar energy helps reduce fossil fuel dependence, it won't replace it entirely, which shows the significance of a harmonized energy mix. In the same way, the main alternatives—solar, wind, and nuclear—each have scaling or consistency limits. Oil and gas, especially natural gas, remain vital to global growth and energy security, creating openings for agile, cost-effective penny stocks. While major companies grab headlines with billion-dollar projects, penny stocks—small-cap oil and gas companies trading under $5—attract interest for their high-growth potential. We first sifted through ETFs, online rankings, and internet lists to compile a list of the best oil and gas stocks under $5. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. For tied stocks, we ranked them by the value of their hedge fund stakes. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A petrol tanker truck refueling a highway service station, highlighting the fuel distribution arm of the company. Number of Hedge Fund Holders: 14 Share Price as of April 16: $4.76 Cosan S.A. (NYSE:CSAN), a Brazilian powerhouse for energy and logistics, specializes in operations like fuel distribution, natural gas infrastructure, ethanol and bioenergy production, and logistics. It works through companies like Raízen, Compass, and Moove across the oil and gas sector, distributing fuel, selling electricity and natural gas, and running gas terminals. Moreover, the Compass segment is working to expand gas pipelines throughout Brazil, helping with long-term clean energy goals. For the year ended December 31, 2024, Cosan S.A. (NYSE:CSAN) brought in about $6.1 billion in portfolio EBITDA, showing strength in most areas. Although it suffered a net loss of around $183 million due to one-time events and write-downs from selling its Vale stake. The company's corporate debt hit $4.8 billion, with a debt coverage ratio of 1.1x, below its target of 1.5x. Despite weather problems impacting Raízen's sugar and ethanol production, other divisions like Rumo and Compass did well. Where Rumo achieved record results from higher rates and increased shipping volumes, Compass grew its gas distribution and continued ramping up Edge, its gas terminal. Additionally, Moove increased revenues through better supply chain management, despite fewer sales overall. Going forward, Cosan S.A. (NYSE:CSAN) aims to cut its holding company debt by at least 30% after selling its Vale stake in January 2025. It is reviewing Raízen's assets, simultaneously looking for strategic partners in electricity and renewables. Although the company won't issue new shares, it might sell certain assets to improve financial discipline and cash flow. Overall, CSAN ranks 10th on our list of best oil and gas penny stocks to invest in now. While we acknowledge the potential of CSAN as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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Is Cosan S.A. (CSAN) the Best Ethanol Stock to Buy According to Hedge Funds?
Is Cosan S.A. (CSAN) the Best Ethanol Stock to Buy According to Hedge Funds?

Yahoo

time07-04-2025

  • Business
  • Yahoo

Is Cosan S.A. (CSAN) the Best Ethanol Stock to Buy According to Hedge Funds?

We recently published a list of . In this article, we are going to take a look at where Cosan S.A. (NYSE:CSAN) stands against other best ethanol stocks to buy according to hedge funds. Ethanol stocks are from companies that manufacture, sell, or distribute ethanol, a biofuel derived from crops such as corn and sugarcane. The ethanol industry is booming. As per Precedence Research, the global fuel ethanol market stood at $106.20 billion in 2024, climbed to $111.64 billion in 2025, and is anticipated to exceed $174.98 billion by 2034, representing a 5.12% CAGR between 2024 and 2034. The North American ethanol market is estimated to be worth $60.53 billion in 2024, growing at a CAGR of 5.20% over the forecast period. Overall, the United States is the world's leading producer and exporter of fuel ethanol, and prices in the country stayed relatively low in 2024. Moreover, Brazil is the second-largest producer and exporter. Growth Energy, the nation's largest biofuel trade association, released data revealing that ethanol exports from the US set a new high in 2024. In total, the country exported 1.9 billion gallons of ethanol valued at $4.3 billion in 2024, breaking the previous record for volume set in 2018 and the prior record for value established in 2023. Growth Energy CEO Emily Skor commented: 'The numbers don't lie. The world is looking to the U.S. to meet its fuel needs and American producers are delivering in a way that supports economic growth abroad and at home in rural communities across the country,' 'As the new Administration puts its new trade priorities into action, we look forward to working with President Trump and his team to ensure that we build on this momentum in a way that continues to grow the American farm economy through sales of American ethanol abroad.' Recently, the U.S. Energy Information Administration reported on April 2 that the output of fuel ethanol in the US rose by 1% in the week ending March 28. Stocks of fuel ethanol were down 3%, whereas exports dropped 62%. Most importantly, the export market remains the most attractive opportunity for driving US ethanol demand in 2025. Looking ahead, according to Jacqui Fatka, a farm supply and biofuels economist at CoBank, ethanol usage in higher-level blends is anticipated to surge annually in the US, but it accounts for just a tiny fraction of total ethanol demand due to the market's size. Therefore, without large expenditures in infrastructure that allow retailers to adjust pumps or signage, nationwide E15 sales will not significantly increase in the time to come. Currently, the export market represents the best possibility to boost demand in 2025. According to the United States Department of Agriculture's most recent quarterly trade projection, announced on February 27, ethanol export volumes in the US would hit a record 1.85 billion gallons in the fiscal year 2025. The forecast is slightly higher than the previous quarter's outlook. We sifted through online rankings to form an initial list of 20 Ethanol stocks. From the resultant dataset, we chose the top 12 stocks most favored by hedge funds, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Market Cap as of April 3, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A petrol tanker truck refueling a highway service station, highlighting the fuel distribution arm of the company. Number of Hedge Fund Investors: 14 Cosan S.A. (NYSE:CSAN) provides a variety of services in the energy and logistics sectors. Its reportable categories are Raizen, Compass, Moove, Rumo, and Radar. Most of its revenue comes from Raízen, which is involved in the production, commercialization, and trading of ethanol and bioenergy; the resale and trading of electricity from renewable sources; and the marketing and trading of sugar, fuels, and lubricants. The company is known for its E2G technology, which converts sugarcane waste into high-quality ethanol, making it on our list of the best ethanol stocks. Cosan S.A. (NYSE:CSAN) reported mixed performance in Q4 2024. The company recorded an EBITDA of around BRL 30 billion ($5.1 billion). Despite the positive EBITDA, the firm reported negative earnings of BRL 900 million in 2024. The firm attributed the mixed financial performance predominantly to the devaluation of its shares and the depreciation of the Brazilian Real. The selling of Vale shares lowered the company's debt by 40%. Its goal with this action was to improve its capital structure. Dividends and interest on capital received grew to R$4.3 billion in 2024, owing primarily to Compass's successful resolution of a tax lawsuit issue, a significant rise over 2023 levels. In the fourth quarter, Rumo also set records for both transported volumes and tariffs. This year, Cosan S.A. (NYSE:CSAN) management has committed to strengthening the company's capital structure. The business intends to pursue similar transactions all year long in addition to the Vale divestment. Overall, CSAN ranks 8th on our list of best ethanol stocks to buy according to hedge funds. While we acknowledge the potential of ethanol companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSAN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Cosan S.A. (CSAN): Among the Best NYSE Penny Stocks to Buy According to Analysts
Cosan S.A. (CSAN): Among the Best NYSE Penny Stocks to Buy According to Analysts

Yahoo

time09-03-2025

  • Business
  • Yahoo

Cosan S.A. (CSAN): Among the Best NYSE Penny Stocks to Buy According to Analysts

We recently compiled a list of the . In this article, we are going to take a look at where Cosan S.A. (NYSE:CSAN) stands against the other NYSE penny stocks. President Trump's tariffs on Canada and Mexico went live on March 4, 2025, after a one-month moratorium, prompting retaliatory tariffs from both countries and China. This "game of tariffs" is expected to impact the US economy significantly. Immediately after Trump's announcement, the S&P 500 fell to a new low (5,732.59) since November last year. Although the index had recouped some losses slightly (to 5,778.15 at the time of writing), the message is clear: Trump has ignited a full-blown trade war, and investors aren't willing to take any losses. Legendary investor Warren Buffett commented on this situation, saying the American people will suffer the sharpest pain from the tariffs. 'Tariffs are actually, we've had a lot of experience with them. They're an act of war, to some degree. Over time, they are a tax on goods. I mean, the tooth fairy doesn't pay 'em! And then what? You always have to ask that question in economics. You always say, 'And then what?'' Buffet told CBS News' Norah O'Donnell. READ ALSO: 10 Stocks Targeted by Activist Investors Right Now and 8 Best Value Penny Stocks to Invest in Now. However, others see this policy as the Trump administration's strategy to try to renegotiate some of the trade deals the US has with the countries in question. Spencer Ford, CEO and Wealth Advisor with Conservative Financial Solutions believes that this administration wants to win in the eyes of Americans, and if tariffs are the way, so be it. Although he doesn't hesitate to suggest a better approach: 'The way they're gonna do that [score better trade deals] is through a strong economy, and you don't do that through prolonged tariffs because it just makes things more expensive. They're [tariffs] inflationary. And as we've seen, it's not really good for the investment markets. I think a lot of people are hoping maybe we'll see what happened from Friday to today with Ukraine where, Yeah. Suddenly there's a change of heart there.' Will Trump change heart? Probably. US Commerce Secretary Howard Lutnick recently announced that President Trump will likely announce a deal to cut tariffs on the neighbors. 'Both the Canadians and Mexicans were on the phone with me all day today trying to show that they'll do better on reducing the flow of the synthetic opioid fentanyl into the US,' he told Fox Business Network. But whatever happens, the damage has already been done. Looking at the NYSE, most companies listed on the exchange have been doing great since Trump's comeback at the White House. The NYSE Composite Index has been in the green since January 10, 2025. However, this growth was almost wiped off in a single day when the US tariffs were effected, and the target countries announced retaliations. On the very day the tariffs were effected, the NYSE shed over 2% in value. This index includes a mix of large-cap, mid-cap, and small-cap shares, but the scales tip towards large-cap stocks. This tells you that when the index posts losses, the sell-off affects large-cap stocks more. Granted, small-caps were also affected but the largest impact went to the huge conglomerates that often operate across borders. The latest data shows that NYSE stocks are recovering—the NYSE has so far climbed 1.33% (as of the close on March 5). A lot of this activity is investors' optimism about a tariff reprieve across more sectors after Trump gave the big three automakers a one-month reprieve. But whether this will happen is a question no one can answer right now. That means that the possibility of the NYSE stocks taking another dip in the future is real. And the shares whose value is much more at stake are the large-caps, which makes this an opportune time to consider NYSE penny stocks. To assemble these companies, we used stock screeners to identify NYSE stocks trading under $5. We filtered the resulting companies and picked 12 stocks based on upside potential (at least 30% as of March 7). Additionally, we have included the hedge fund sentiment around each stock, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A petrol tanker truck refueling a highway service station, highlighting the fuel distribution arm of the S.A. (NYSE:CSAN) is a Brazilian conglomerate that operates in multiple sectors, including logistics, fuel distribution, natural gas, and lubricants. The company controls logistics firm Rumo, lubricants company Moove, and natural gas firm Compass and shares control of Raizen with Shell. In January 2025, Cosan S.A. (NYSE:CSAN) sold approximately 173 million shares of its stake in Vale, cutting the stake by 4.05%. According to reports, the transaction raised around 9 billion reals ($1.5 billion). One of the things the company went to do immediately after the sale was to reduce its debt by 40%. The company stated in a securities filing that the decision was 'based solely on the goal of optimizing its capital structure.' Cosan S.A. (NYSE:CSAN) financial results for Q4 2024 showed mixed performance. The company reported an EBITDA under management of approximately BRL 30 billion ($5.1 billion). However, despite this positive EBITDA, the company recorded a negative earnings result of BRL 900 million ($152.9 million) for 2024. The company cited the depreciation of the home currency (Brazilian Real) and the devaluation of its shares as the primary causes of the poor financial performance. To be sure the company's financial position isn't as dire as the Q4 2024 financial results may want to portray, its corporate net debt stood at BRL 23.4 billion ($3.98 billion) by the end of 2024, with a debt service coverage ratio of 1.1. Another positive is that the company announced a notable increase in dividends and interest on capital received, amounting to BRL 4.3 billion ($731.53 million) in 2024. Additionally, Rumo achieved record levels in transported volumes and tariffs in the fourth quarter. Management has promised to improve Cosan S.A. (NYSE:CSAN)'s capital structure this year. In addition to the Vale divestment, the company plans to pursue similar transactions throughout the year. Analysts project a 146.96% upside potential from the stock's current price, which secures the company's spot on this list of NYSE penny stocks to buy. Overall CSAN ranks 3rd on our list of the best NYSE penny stocks to buy according to analysts. While we acknowledge the potential of CSAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

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