Renewable Energy Group (REGI) Dips More Than Broader Markets: What You Should Know
Renewable Energy Group (REGI) closed the most recent trading day at $28.23, moving -0.63% from the previous trading session. This change lagged the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.03%.
Investors will be hoping for strength from REGI as it approaches its next earnings release. In that report, analysts expect REGI to post earnings of $0.40 per share. This would mark year-over-year growth of 126.49%. Our most recent consensus estimate is calling for quarterly revenue of $525.15 million, down 6.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.83 per share and revenue of $2.03 billion. These totals would mark changes of +2.13% and -4.81%, respectively, from last year.
Any recent changes to analyst estimates for REGI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.75% lower. REGI currently has a Zacks Rank of #3 (Hold).
In terms of valuation, REGI is currently trading at a Forward P/E ratio of 7.43. This represents a discount compared to its industry's average Forward P/E of 15.93.
The Biofuels industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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