Latest news with #GrowthEnergy
Yahoo
09-04-2025
- Business
- Yahoo
Is Green Plains Inc. (GPRE) 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 Green Plains Inc. (NASDAQ:GPRE) 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 close-up of a distiller grains bag, highlighting the company's ethanol production process. Number of Hedge Fund Investors: 29 Green Plains Inc. (NASDAQ:GPRE) ranks fifth among the Best Ethanol Stocks on our list. It produces and markets ethanol and its byproducts in two functional segments. The majority of the company's revenue is produced by the ethanol production area, which also produces sustainable corn oil, distillers grains, ethanol, and Ultra-High Protein. The agriculture and energy services section encompasses grain handling and storage, commodity marketing, and merchant trading of company-produced and third-party ethanol, distillers grains, Ultra-High Protein, renewable corn oil, natural gas, and other commodities. Green Plains Inc. (NASDAQ:GPRE) decided to close its Fairmont, Minnesota operation in January 2025 as it deals with difficult market conditions. Furthermore, the firm announced on March 17, 2025, that it had decided to temporarily shut down its Clean Sugar Technology facility located in Shenandoah, Iowa. Green Plains' plan to improve profitability by improving its product mix includes this step. Green Plains Inc. (NASDAQ:GPRE) has already implemented $30 million of its $50 million annualized cost savings strategy, which includes organizational transformation and leadership cutbacks. Exports of ethanol are predicted to increase further in 2025 and are on course to hit a record 1.9 billion gallons. Initiatives for carbon capture have advanced drastically, and the Tallgrass Trailblazer Project is scheduled to start CO2 capture in the second half of this year. Moreover, the business increased its market share in the aquaculture market by securing its biggest sale to date, which could lead to further growth. The firm concluded the year with $200.7 million available under its working capital revolver and $209.4 million in cash, displaying its solid liquidity position. Overall, GPRE ranks 5th 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 timeframe. 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 GPRE 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
Yahoo
07-04-2025
- Business
- Yahoo
Is Valero Energy (VLO) 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 Valero Energy Corporation (NYSE:VLO) 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 (). Massive storage tanks filled with crude oil and diesel fuels at an oil refinery. Number of Hedge Fund Investors: 52 Valero Energy Corporation (NYSE:VLO) is among the biggest independent refiners in the US. It runs 15 refineries in the US, Canada, and the UK, with a daily throughput capacity of 3.2 million barrels. The firm also has 12 ethanol plants with a combined capacity of 1.6 billion gallons per year, as well as a 50% investment in Diamond Green Diesel, which can create 1.2 billion gallons of renewable diesel annually. Its financial performance has been under pressure due to the recent decline in refining margins and rising operating expenses. Nonetheless, through initiatives like the Sustainable Aviation Fuel program, the business is still committed to improving its renewable energy capabilities. The operating income of Valero Energy Corporation (NYSE:VLO)'s largest category, refining, decreased to $437 million in Q4 2024 from $1.6 billion the year before. However, renewable diesel was a standout, increasing its operating income from $84 million in Q4 2023 to $170 million, in part because of higher sales volumes and improved margins. The ethanol sector saw a dramatic decline, generating only $20 million in revenue as opposed to $190 million. Valero Energy Corporation (NYSE:VLO) remains well-positioned for almost any market condition due to its high-quality refining assets and location, which allows for greater feedstock flexibility. The business has always had an advantage because of its more efficient system of 15 refineries, which enables it to turn lower-quality feedstock into a high-value output. It shifted to processing larger quantities of high-quality discounted domestic crude by replacing imported crude with local, building more light crude processing capacity, and investing in transportation infrastructure as domestic light crude discounts emerged. Overall, VLO ranks 1st 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 VLO 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
Yahoo
07-04-2025
- Business
- Yahoo
Is Bunge Global (BG) 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 Bunge Global SA (NYSE:BG) 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 (). Aerial view of an orchard of different fruits, representing the abundance of the agribusiness. Number of Hedge Fund Investors: 38 Market Cap as of April 3, 2025: $10.45 billion Bunge Global SA (NYSE:BG) is a food technology and ingredient developer, just like other midmarket supply chain companies. This part of the food industry is quite profitable. Its sales and profitability have fluctuated since its 2001 U.S. initial public offering, but it has managed to keep raising its dividend over time. The firm's Sugar and Bioenergy section manufactures sugar and ethanol and generates electricity by burning sugarcane bagasse, ranking it fourth on our list of the Best Ethanol Stocks. Bunge Global SA (NYSE:BG) is nearing the end of the regulatory procedures in China and Europe after receiving regulatory permission from the Canadian government for the Viterra deal. It is anticipated that the acquisition will build a $25 billion powerhouse that can compete with some of the top agricultural companies in the world. Furthermore, in FY 2024, the business declared that the sale of its Brazilian joint venture for sugar and bioenergy was completed. Bunge Global SA (NYSE:BG) repurchased $1.1 billion of stock in 2024, showing a strong commitment to returning cash to shareholders. The company has a $3.3 billion cash balance at year's end and $8.7 billion in unused committed credit facilities, revealing its strong liquidity position. As far as sustainability goes, the business made history by being the first international commodity exporter to guarantee 100% traceability as well as tracking of direct and indirect soy purchases in Brazil's priority regions. Overall, BG ranks 4th 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 BG 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.
Yahoo
07-04-2025
- Business
- Yahoo
Is Adecoagro S.A. (AGRO) 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 Adecoagro S.A. (NYSE:AGRO) 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 farmer driving a tractor and working the land reflecting the company's core values. Number of Hedge Fund Investors: 17 Adecoagro S.A. (NYSE:AGRO) is a leading South American agricultural company. Its operations include the production of energy, sugar, ethanol, land transformation, dairy operations, and the cultivation of crops and other agricultural products. The business is divided into three segments: Land Transformation, Sugar, Ethanol and Energy, and Farming. In the Ethanol and Energy segment, sugarcane is grown and then processed in owned sugar mills to produce ethanol. The stock is up by more than 15% YTD, making it among the best ethanol stocks. The goal of Adecoagro S.A. (NYSE:AGRO) is to maximize the production of Hydrous Ethanol, a blend of ethanol and water used in automobiles and for industrial uses. The firm has been aggressively growing its capacity to produce ethanol. The company's strategic focus on Hydrous Ethanol is fueled by higher margins and an increasing preference for this product over other types of ethanol. Adecoagro S.A. (NYSE:AGRO)'s revenue jumped 41.8% year over year in Q4 2024 due to record-breaking sugar production, which produced 832,000 tons of sugar with a 52.2% sugar mix and set a new crushing record. The dairy and rice industries also performed well due to stronger yields and higher selling prices. Without affecting debt or expansion plans, shareholder returns rose dramatically in 2024, with $102 million distributed, which was $32 million more than the distribution policy. A further indication of better operational efficiency was the cash costs, which decreased to 12.7 cents per pound of sugar equivalent, an 8% decrease from the previous year. The market forecast for ethanol is still attractive because of the advantageous pump parity compared to gasoline, which creates an appealing price environment and strong demand. Overall, AGRO ranks 7th 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 AGRO 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
Yahoo
07-04-2025
- Business
- Yahoo
Is Alto Ingredients (ALTO) 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 Alto Ingredients, Inc. (NASDAQ:ALTO) 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 (). View of a distillery floor with various processes of grain neutral spirits production. Number of Hedge Fund Investors: 10 Alto Ingredients, Inc. (NASDAQ:ALTO) manufactures specialty alcohol and essential ingredients. The company is divided into three segments: marketing and distribution, Pekin Campus production, Western production, and others. It operates a network of ethanol production facilities throughout the United States. The company's annual production capacity is 350 million gallons. This establishes it as a major player in the ethanol industry. Alto Ingredients, Inc. (NASDAQ:ALTO) produces revenue by selling ethanol and its byproducts, such as distillers grains and corn oil, which are utilized in various industries, including fuel, feed, and chemicals. Alto Ingredients, Inc. (NASDAQ:ALTO) appears to gain from growing ethanol demand, both domestically and globally. The growing usage of E15 fuel in the US, which contains 15% ethanol rather than the usual 10%, is already driving up demand. On the export front, Europe, Japan, and other countries are increasing their ethanol blend ratios. Furthermore, ethanol's significance as a crucial feedstock for the developing sustainable aviation fuel market provides an additional potential opportunity. Tax credits and investments in Carbon Capture and Storage can stimulate even more growth. On January 1, 2025, Alto Ingredients, Inc. (NASDAQ:ALTO) announced that Kodiak Carbonic had been bought by its wholly owned subsidiary, Alto Carbonic, for $7.25 million in cash plus working capital. The purchase includes an upgraded, long-term contract for the sale of beverage-grade CO2, which will immediately add to the bottom line, has an appealing payback timetable, and offers an opportunity for future expansion. Overall, ALTO ranks 12th 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 ALTO 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
