Published on 26 May 2024 on Insider Monkey via Yahoo Finance

Is Green Plains Inc. (NASDAQ:GPRE) Stock a Buy?

In this article, we will dissect whether Green Plains Inc. (NASDAQ:GPRE) is a buy according to analysts and also look at recent developments in the market. To view more renewable energy stocks, check our free report on the 7 Best Alternative Energy Stocks To Buy According to Analysts.

Growing Investments in the Clean Energy Transition

According to a report by the International Energy Agency, clean energy investment grew by approximately 50% from 2019 to 2023, reaching $1.8 trillion with a growth rate of 10% per year. The annual addition of solar photovoltaics and wind reached 85% and 65% respectively in 2023. However, the increase in clean energy deployment was not translated into market investments. The industry underperformed in 2023, with many investors pulling out their investments. However, On May 7, Reuters reported that clean energy generation and distribution exchange-traded funds (ETFs) are beginning to outperform oil and gas ETFs. Since 2022, the ETFs tied to renewable energy generation and distribution have declined between 20% and 70% of their value, driven by the rising interest rates and a slowdown in clean energy deployment, which led to declining stock prices and earnings of the stocks. This resulted in the increased earnings of oil and gas producers, with returns of over 50% during the same period. The declining trend of clean energy ETFs is reversing with ETFs tied to the energy transition, reporting positive returns as a leading oil and gas exploration ETF, SPDR S&P Oil & Gas Exploration & Production ETF lost nearly 5%. Major renewable energy ETF, iShares Global Clean Energy ETF has surged nearly 13% over the past month, as of May 23.