ORGN: Is Origin Materials a Good Clean Energy Stock to Add to Your Portfolio?

Origin Materials (ORGN), is a carbon-negative materials provider. The company has developed a platform that converts carbon within non-food biomass into a material that provides practical utility. Carbon is captured during this conversion process, making ORGN quite the intriguing clean energy stock. Previously operating under the business name of Artius Acquisition, ORGN is based in West Sacramento. The company also has facilities in Sarnia, Canada. ORGN has incorporated 13 years ago. The company is square in the spotlight today and will continue to be in the future as capturing carbon is essential to a green future in which environmental sustainability is emphasized across the globe.

ORGN has mastered the commercialization of PET plastic that is plant-based. Your eyes are not deceiving you. Science and technology really have advanced to the point that it is possible to make plastic with plants. ORGN serves activated carbon, agriculture, tire filler, and carbon black markets.

If you are looking for a clean energy stock for portfolio diversification or simply want to make money in this rapidly growing industry, you owe it to yourself to review the merits and drawbacks of stocks like ORGN.

ORGN Points of Note

ORGN is currently trading at $5.66 per share, a price that is concerning, to say the least. If ORGN moves below $5 and hovers there for an extended period of time, there is a chance it will be de-listed. ORGN’s 52-week high is an impressive $14.01. However, the stock is trading closer to its 52-week low of $5.12. ORGN has a market cap of nearly a billion dollars. The stock’s 200-day moving average is $9.94. ORGN has a 50-day moving average of $8.54.

ORGN has had price returns in the red and the green throughout the past five years. The stock has a year-to-date price return of -46%. ORGN had a fantastic 2020, providing a 9,476% price return. The stock has a three-year price return of 6,702% yet it has a negative six-month price return of -48% and a three-month price return of -43%. Furthermore, if you keep on digging back to ’16 and ’17, you will find negative price returns of -19.38% and -34.11%, respectively.

ORGN POWR Rating Components

ORGN has a D POWR Rating grade. Though the stock has an A Momentum component grade, it also has an F Value component and Ds in the Sentiment and Quality components. Click here to learn more about ORGN’s performance in the rest of the POWR Ratings components such as Stability and Growth.

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Of the 54 publicly traded stocks in the Industrial – Building Materials space, ORGN is ranked nearly dead last, coming in at 52nd. This industry as a whole has a B POWR Rating grade. You can find out more about the stocks in this segment by clicking here.

ORGN According to the Analysts

A couple of analysts are bullish on ORGN, setting an average price target of $21. However, this target is based on the feedback of only two analysts who have taken the time necessary to perform a deep dive into ORGN. So don’t let the elevated price target steer you toward scooping up ORGN shares. This average analyst price target would mean much more if it were the result of 10+ analyst predictions.

Is ORGN Worthy of a Position in Your Portfolio?

No. ORGN is not worthy of your hard-earned investing dollars. The stock has a D POWR Rating grade. If you remove ORGN’s A Momentum component grade from the picture, its POWR Rating components are abysmal.

ORGN’s next expected earnings date will be August 12. Pay attention to the stock’s news stories that day, analyze the company’s earnings in-depth and continue to monitor its POWR Rating grade as well as its individual POWR Rating component grades moving forward. Steer clear of ORGN until it moves up to a C or B POWR Rating grade.

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ORGN shares were trading at $5.26 per share on Wednesday afternoon, down $0.45 (-7.88%). Year-to-date, ORGN has declined -50.52%, versus a 18.39% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...