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Renewable Energy Group (REGI) Gains But Lags Market: What You Should Know

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Renewable Energy Group (REGI - Free Report) closed at $31.21 in the latest trading session, marking a +0.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 1.01%.

Heading into today, shares of the biodiesel producer had gained 8.26% over the past month, outpacing the Oils-Energy sector's loss of 9.11% and the S&P 500's loss of 6.82% in that time.

Wall Street will be looking for positivity from REGI as it approaches its next earnings report date. This is expected to be November 6, 2018. The company is expected to report EPS of $0.63, up 317.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $594.60 million, down 5.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.80 per share and revenue of $2.44 billion. These totals would mark changes of +433.33% and +12.9%, respectively, from last year.

Any recent changes to analyst estimates for REGI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 22.22% lower. REGI is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that REGI has a Forward P/E ratio of 4.57 right now. This valuation marks a discount compared to its industry's average Forward P/E of 31.72.

The Biofuels industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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