The latest fundamentally sound meme stock to join the revue is Clean Energy Fuels (NASDAQ:CLNE). Though caught up in meme mania with the likes of Workhorse (NASDAQ:WKHS), AMC (NYSE:AMC), and Blackberry (NYSE:BB), CLNE stock stands on solid ground.
As more and more stocks get caught up in the social momentum trading craze, we’ll naturally see more meme stocks that are more than just meme stocks.
Stocks like ContextLogic (NASDAQ:WISH) whose value-first mobile commerce platform is actually kind of brilliant, for example.
CLNE Stock: From Natural Gas to Renewable Gas
As far as Clean Energy Fuels, they’ve been in the natural gas production and distribution space for more than two decades. And they’re continuing to stand out by taking advantage of their past successes to provide themselves a head start into the renewable energy space.
During their time as a company, Clean Energy Fuels has grown their network to include over 550 natural gas stations and 1,000 fleet customers. And they now sell over 400 million gallons of natural gas per year.
When it comes to natural gas production and distribution, Clean Energy Fuels is at the top of the ladder.
That alone is good, but Clean Energy Fuels is doing more than sitting as the top dog of the natural gas game.
In fact, they recently introduced a new company logo that brings their focus on renewable natural gas (RNG) to the forefront of their brand’s identity. But the recent logo changeup doesn’t mean the company is just now getting into renewables — it only marks a significant milestone in this company’s longstanding journey.
Since 2013, Clean Energy Fuels has been pouring resources into its waste-sourced RNG called Redeem. Volumes of Redeem have soared over 1,000%, from 13 million gallons to 143.3 million gallons. RNG currently represents 70% of the fuel Clean Energy Fuels sells, and they’re on track to be 100% RNG-based by 2025.
Clean Energy Fuels also has multiple huge contracts with companies that use a lot of natural gas, such as UPS. This gas-guzzling parcel delivery company signed the biggest RNG contract ever with Clean Energy Fuels back in 2019.
Invest in the Tools, Not the Gold
In 1849, during the California Gold Rush, thousands of dreamers flocked to the West Coast to get rich by finding gold. But few people actually found any gold, and most people ended up completely broke. The most consistently profitable individuals were those who supplied the prospectors with their pickaxes, shovels and other essential tools.
The way to strike “gold” in megatrend investing is to seek out and invest in the industry’s suppliers — like Clean Energy Fuels.
We believe Clean Energy Fuels should be able to leverage its big contract wins, current RNG momentum and the company’s long-standing legacy gas dominance to become the unrivaled renewable natural gas supplier in the United States.
This would be huge for the company, since 40.5 billion gallons of gas are consumed each year by the transportation market in the U.S. alone. Many estimates suggest roughly 20% of this market will be powered by RNG by 2030 — that’s about 8 billion gallons of RNG.
If Clean Energy Fuels can control just 20% of the RNG market in 2030, then their current RNG sales would see growth of over 1,000% — up from 143.3 million gallons in 2019 to 1.6 billion gallons in 2030.
As their sales grow, so will CLNE stock.
As such, if you’re bullish on RNG’s role in the clean energy revolution, ignore its current meme stock status and take a position in CLNE stock when it inevitably dips after the hype dies. That said, CLNE isn’t the only fundamentally meme stock on my radar today.
In my Innovation Investor newsletter service — where I have more than 40 hypergrowth stock picks that could score investors Amazon-like returns over the next months and years — my newest pick in Everything E-Commerce is another meme stock that recently went gangbusters. Join today to find out which stock I’m talking about.
What’s more, my focused portfolio approach in Innovation Investor includes a number of the world’s strongest companies in secular, emerging megatrends such as artificial intelligence, autonomous driving, electric vehicles, and so much more.
These stocks include the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.