Is Gevo Stock a Buy After Farmers Edge Partnership?

GEVO stock - Is Gevo Stock a Buy After Farmers Edge Partnership?

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Gevo (NASDAQ:GEVO) is developing renewable electricity and renewable natural gas for production processes, which has helped thrust GEVO stock into the spotlight. The company states that its “products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions.” Gevo says its technology can also be applied to plastics, like polyester, enabling these products to be made with more sustainable ingredients.

The low-carbon fuels market is growing, partly due to the high price of oil, but also because lower carbon emission fuel should be used more frequently when it can be. Lower-emissions fuel is a growth industry and Gevo is committed to grow with it.

The company aims to use its processes to commercialize the next generation of fuels and create sustainable aviation fuel and other energy products that can potentially achieve zero carbon emissions over the fuel’s life cycle.

Gevo is combining its growth efforts whenever it can. As reported by Yahoo Finance on April 5, Gevo and Farmers Edge, a global digital agriculture company, announced signing a memorandum of understanding to collaborate on a program supporting tracking carbon intensity.

The companies plan to combine FDGE’s dataset with Gevo’s tracking platform and blockchain technology to start a program with U.S. growers to measure and track carbon intensity scores for corn and soy. If they’re successful, they will help lead the way for sustainable aviation fuel and other hydrocarbon fuels.

MarketBeat.com announced that in February, Gevo reported an earnings loss of 8 cents for its fourth quarter 2021. This missed the consensus analysts’ estimate of a loss of 7 cents per share. In the upcoming year, Gevo’s earnings losses are estimated to increase, from a loss of 35 cents to 38 cents per share.

GEVO stock is appealing, especially for long-term, patient investors. With continuing earnings losses on the horizon, however, the reasons to buy are not strong enough to warrant investing until the earnings record looks more solid.

On the date of publication, Max Isaacman did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Max Isaacman is an Investment Advisor Representative in San Francisco. He was a Merrill Lynch Representative and a Vice President of Lehman Brothers. His investment books were published by McGraw-Hill and Financial Times Press, including the first book on ETFs, How to be an Index Investor (McGraw-Hill, 2000). He wrote for the Emmy award-winning Website Minyanville.com. His email is exch13@aol.com.


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