Key Takeaways ALTO sees year-round E15 sales as a potential long-term catalyst for ethanol demand.Expanded E15 access could help absorb added low-carbon ethanol output and support industry margins.Nationwide E15 adoption, including California, could add roughly 1 billion gallons of ethanol demand. Alto Ingredients, Inc. (ALTO - Free Report) could benefit from expanding year-round E15 gasoline sales, which may become an important long-term demand catalyst for its ethanol business. While the company has been improving operations and benefiting from Section 45Z production tax credits, broader E15 adoption could strengthen domestic ethanol demand and provide a larger market for low-carbon renewable fuels. In its first-quarter 2026 earnings call, management highlighted California’s AB 30, which provides a pathway for year-round E15 sales, and noted growing momentum for similar legislation at the federal level.
Stronger demand is becoming increasingly important for ethanol producers. While production incentives encourage higher output, Alto Ingredients believes demand growth is necessary to prevent excess supply from weighing on industry margins. Management described expanded E15 access as an important complement to 45Z incentives by helping the market absorb additional low-carbon ethanol production over time while complementing demand from export markets.
The opportunity could become even more meaningful as Alto Ingredients continues improving production efficiency and operational performance. In its first-quarter earnings call, management cited industry estimates implying that nationwide year-round E15 adoption, including California, could add roughly 1 billion gallons of ethanol demand. While the pace of adoption remains dependent on policy implementation and market acceptance, broader E15 availability could represent a meaningful long-term growth catalyst for Alto Ingredients and the broader ethanol industry.
How ALTO's Ethanol Growth Story Compares With PeersGevo, Inc. (GEVO - Free Report) also sees expanding ethanol demand as an important long-term industry catalyst. In its first-quarter 2026 earnings call, Gevo said year-round E15 adoption could increase ethanol demand while highlighting growing export demand and the emergence of new low-carbon fuel markets. Gevo believes these demand drivers could support additional ethanol consumption and strengthen the growth opportunity for its low-carbon ethanol platform.
Green Plains Inc. (GPRE - Free Report) also views strong ethanol demand as an important long-term industry driver. In its first-quarter 2026 earnings call, Green Plains highlighted solid domestic and international demand, including healthy export markets, and said the structural backdrop for ethanol remains as positive as it has been in years. Green Plains believes sustained demand, combined with operational execution and its carbon strategy, supports the long-term cash-generation outlook and reinforces a constructive industry backdrop.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 374.8% over the past year compared with the industry’s growth of 20.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.45, lower than the industry’s average of 3.3.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways ALTO's shares surged 343.6% in a year, yet its forward P/S ratio remains below peers and the industry.First-quarter 2026 EPS turned positive as EBITDA and gross profit rebounded from year-ago losses.Section 45Z credits, capacity upgrades and export strength support growth, while commodity risks remain. Alto Ingredients, Inc. (ALTO - Free Report) has been benefiting from improving profitability, favorable industry conditions and expanding opportunities from Section 45Z tax credits. The renewable fuels producer is also executing operational optimization and capacity expansion initiatives that are expected to strengthen its earnings profile and support long-term growth. Despite these positive developments, ALTO continues to trade at a discount to its industry and several key peers, making the stock worth a closer look.
Shares of ALTO have soared 343.6% in the past year, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 23.8%, while the Consumer Products - Discretionary industry gained 16.5%. In contrast, the broader Consumer Discretionary sector declined 14.9%.
ALTO has also significantly outperformed several notable competitors, including Green Plains Inc. (GPRE - Free Report) , Gevo, Inc. (GEVO - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) . Green Plains and Gevo rose 115.7% and 8.9%, respectively, over the same period, while MGP Ingredients declined 42.4%. This exceptional performance has established ALTO as one of the standout stocks within its peer group.
ALTO Stock Past Year Performance
Image Source: Zacks Investment Research
Strong stock performance often comes with stretched valuations. However, despite its remarkable rally, ALTO remains attractively valued compared with the broader industry and several key peers, indicating there could still be room for further upside.
Alto Ingredients' Valuation Still Looks AttractiveALTO currently trades at a forward 12-month price-to-sales ratio (P/S) of 0.4, well below the industry average of 3.29 and the sector average of 2.28. The stock also trades at lower multiples compared with Green Plains, Gevo and MGP Ingredients, whose forward price-to-sales ratios are 0.59, 1.99 and 0.73, respectively.
ALTO’s Valuation Compared to Industry
Image Source: Zacks Investment Research
So, what's driving ALTO's exceptional performance? Let's take a closer look.
Fundamentals Supporting ALTO’s RallyAlto Ingredients' rally has been underpinned by a significant turnaround in its financial performance. In the first quarter of 2026, the company reported earnings of 5 cents per share against a loss of 16 cents in the year-ago quarter. Adjusted EBITDA improved to $4.7 million from a negative $4.4 million, while gross profit swung to $9.2 million from a gross loss of $1.8 million. The results underscored the success of ALTO’s strategic realignment and enhanced earnings power.
Favorable industry dynamics have also provided a meaningful boost. Strong export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices supported margins. Board crush margins increased to 17 cents per gallon from just 2 cents a year ago, while essential ingredients returns improved to 53.4% from 48.2%. Management also remains optimistic about demand growth from export markets and year-round E15 adoption.
At the same time, Alto Ingredients continues to invest in projects aimed at enhancing long-term profitability. A debottlenecking project at the Pekin dry mill is expected to raise annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments should enhance flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives that could provide additional earnings opportunities over time.
Section 45Z tax credits have also emerged as another important growth driver for Alto Ingredients. The company recognized $3.9 million in tax-credit earnings during the first quarter and expects roughly $15 million in annual net proceeds from qualifying production volumes. Positive operating cash flow, lower debt and more than $94 million in borrowing capacity have further strengthened its financial position.
What Could Limit ALTO's Upside?Alto Ingredients remains exposed to fluctuations in commodity prices and broader macroeconomic conditions. On its first quarter of 2026 earnings call, management noted that rising energy costs, geopolitical tensions in the Middle East and disruptions to freight and export logistics could create volatility in input costs and product demand. Since the company's margins are closely tied to corn, natural gas and ethanol prices, sustained cost inflation or weaker market conditions could weigh on profitability.
The company also faces the risk of weaker industry margins if production outpaces demand. Management acknowledged that strong spring crush margins have historically encouraged higher ethanol production, often leading to oversupply and margin compression in the second half of the year. While export demand and the potential expansion of year-round E15 could help absorb additional volumes, their impact remains uncertain.
The Bottom Line on Alto IngredientsAlto Ingredients has strengthened the business through higher profitability, favorable industry conditions and ongoing operational investments, supporting its impressive stock performance. ALTO’s shares also continue to trade at an attractive valuation despite the strong rally. However, exposure to commodity price volatility and the potential for industry margin pressure remain key risks to monitor. With a Zacks Rank #3 (Hold), existing investors may consider staying invested, while new investors may await a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Alto Ingredients plans to raise Pekin dry mill capacity by about 5 million gallons, or roughly 8%. ALTO expects higher output to improve asset utilization and expand Section 45Z tax credit eligibility. ALTO expects the higher production run rate to be fully realized beginning in the fourth quarter. Alto Ingredients, Inc. (ALTO - Free Report) is betting that a targeted operational upgrade can unlock meaningful production gains without the expense of building new capacity. In the first-quarter 2026 earnings call, management announced plans to debottleneck its Pekin dry mill during a scheduled June maintenance outage. The project is expected to increase the plant's annual production capacity by about 5 million gallons, or roughly 8%, with the higher run rate expected to be fully realized beginning in the fourth quarter.
The significance of the initiative extends beyond simply producing more gallons. By removing operational constraints at one of its most efficient facilities, Alto Ingredients aims to improve asset utilization and spread fixed costs over higher production volumes. That approach could enhance operating efficiency while requiring far less capital than constructing new production capacity.
The project could also provide an additional financial benefit. Higher output from the Pekin dry mill is expected to increase the number of gallons eligible for Section 45Z clean fuel tax credits, creating another source of incremental earnings alongside the added production. The debottlenecking project is part of Alto Ingredients’ near-term strategy to maximize the value of its existing assets while capturing greater benefits from the clean fuel incentive program.
The project is scheduled alongside a planned maintenance outage, helping limit additional disruption. If completed on time, it could improve capacity and operating efficiency through targeted upgrades to existing assets.
How ALTO's Capacity Expansion Strategy Compares With PeersGevo, Inc. (GEVO - Free Report) is also advancing a debottlenecking project at its Gevo North Dakota facility to boost low-carbon ethanol output. In the first quarter of 2026, Gevo completed the necessary equipment tie-ins during a planned shutdown, enabling the project to progress without disrupting planned production. Gevo continues to target an annual low-carbon ethanol production capacity of about 75 million gallons beginning next year.
Green Plains Inc. (GPRE - Free Report) is prioritizing incremental improvements across its ethanol network through efficiency and reliability projects. To improve plant performance and lower carbon intensity, Green Plains is investing in low-energy distillation upgrades, grain storage and yield-enhancement projects. Green Plains is focused on optimizing operations across its broader production footprint.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 346.8% over the past year compared with the industry’s growth of 14.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.43, lower than the industry’s average of 3.31.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Alto Ingredients returned to profitability in Q1 2026 after posting losses in the prior-year period.Stronger export, higher ethanol crush margins and richer product mix lifted gross profit to $9.2 million.Pekin upgrades aim to boost reliability, efficiency and capacity while expanding 45Z tax credit eligibility. Alto Ingredients, Inc. (ALTO - Free Report) posted a notable turnaround in the first quarter of 2026, returning to profitability after reporting losses in the prior-year period. The bigger question now is whether this improvement represents the start of a sustained trend or simply reflects favorable market conditions.
Several factors behind the quarter suggest the gains were not driven by a single event. In the first quarter of 2026, gross profit improved to $9.2 million from a gross loss of $1.8 million a year ago, supported by stronger export sales, higher ethanol crush margins and a richer product mix. Importantly, management stated that the company would have remained profitable even without the contribution from Section 45Z tax credits, indicating that core operations also improved.
Alto Ingredients is also working to make those gains more durable. The company is investing in projects aimed at improving plant reliability, increasing production efficiency and expanding capacity at its Pekin facility. These initiatives are expected to enhance operating performance while allowing more production to qualify for 45Z tax credits.
Still, sustaining profitability will depend on maintaining healthy industry margins. Management acknowledged that ethanol margins have historically weakened when higher production creates oversupply. However, it believes stronger export demand and broader adoption of E15 fuel could help balance the market and support margins.
For now, Alto Ingredients’ return to profitability appears to be supported by both operational improvements and a favorable market backdrop. The consistency of these drivers will determine whether the company's profitability momentum can be sustained over the coming quarters.
How ALTO's Profitability Momentum Compares With PeersGreen Plains Inc. (GPRE - Free Report) strengthened profitability in the first quarter of 2026 through higher ethanol margins, improved plant utilization and operational excellence. While treating 45Z tax credits as an additional benefit rather than the primary driver of returns, Green Plains also continues to invest in yield improvements and lower-energy operations to enhance its base business. Green Plains believes these initiatives will support durable profitability over the long term.
MGP Ingredients, Inc. (MGPI - Free Report) is improving profitability by emphasizing operational reliability, cost discipline and a richer product mix despite a challenging industry backdrop. Supported by ongoing efficiency initiatives, MGP Ingredients expanded Ingredient Solutions’ gross margin in the first quarter of 2026 through higher specialty protein and starch sales. MGP Ingredients expects these operational improvements and productivity measures to support stronger margins over time.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 352.1% over the past year compared with the industry’s growth of 8.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.43, lower than the industry’s average of 3.21.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Consumer Products-Discretionary industry is navigating a mixed operating environment, with resilient consumer demand tempered by persistent macroeconomic uncertainty. Inflationary pressures have eased from their recent peaks, and consumer confidence has shown signs of stabilization. Still, households remain selective in their spending as elevated living costs, an uneven labor market and lingering interest-rate pressures continue to influence purchasing decisions. While higher-income consumers have largely remained resilient, lower and middle-income households are prioritizing value, leading to a bifurcated spending environment across discretionary categories.
Against this backdrop, companies are relying less on broad-based demand and more on execution to drive growth. Investments in omnichannel capabilities, AI-powered personalization, retail media, loyalty programs and supply-chain efficiencies are taking precedence. At the same time, companies continue to contend with promotional competition, tariffs and cautious inventory management, making pricing discipline and operational efficiency critical to protecting margins. As consumers gravitate toward brands that offer compelling value and convenience, industry players with strong digital ecosystems, diversified sourcing strategies and disciplined cost structures remain better positioned to outperform the broader consumer discretionary industry.
Central Garden & Pet Company (CENT - Free Report) , Alto Ingredients, Inc. (ALTO - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) and ACCO Brands Corporation (ACCO - Free Report) stand out as strong contenders in this evolving marketplace.
About the Industry The Consumer Products-Discretionary industry has a direct correlation with the economy, making it cyclical. Discretionary products command high prices, with middle-to-higher-income groups being the targeted customers. The industry comprises companies that offer product categories, including fashion, jewelry and watches, and other home and art products. Quite a few players develop, manufacture, market and sell over-the-counter health and personal care products. Some even manufacture and distribute party goods. Some companies design, source and distribute licensed pop culture products, too. Some industry participants also produce and distribute various products for the lawn and garden and pet supplies markets. Companies sell products to specialty retailers, mass-market retailers and e-commerce sites.
4 Key Trends to Watch in the Industry Consumers Remain Selective as Value Becomes the Primary Driver: Consumer spending remains resilient but selective as households continue to balance discretionary purchases against higher living costs, elevated borrowing expenses and lingering economic uncertainty. While easing inflation has provided some relief, shoppers remain value-conscious and are prioritizing essential and experience-led purchases. Promotional activity remains elevated across many retail categories, compelling companies to compete through sharper pricing, exclusive assortments and loyalty programs. Companies that successfully combine compelling value with differentiated merchandise and strong brand positioning are expected to be better placed to sustain demand.
Digital Innovation and AI Continue to Reshape Industry: Industry participants are accelerating investments in digital capabilities to improve customer engagement, operational efficiency and profitability. Artificial intelligence is increasingly being deployed across merchandising, pricing, inventory planning, customer service and personalized marketing, helping companies make faster and more informed decisions. Omnichannel strategies remain central to growth as consumers expect seamless shopping experiences across stores, websites and mobile platforms. Faster fulfillment, enhanced convenience and data-driven personalization are becoming key competitive advantages, allowing leading companies to strengthen customer loyalty while improving productivity and long-term margin potential.
Margin Expansion Depends on Operational Discipline: Although supply-chain disruptions have largely eased, industry players continue to face pressure from labor costs, tariffs, transportation expenses and ongoing technology investments. As a result, margin expansion will depend less on pricing and more on disciplined execution. Companies are focusing on inventory optimization, sourcing diversification, automation and expense control to improve profitability while limiting markdowns. Industry participants that maintain healthy inventory levels, strengthen supply-chain flexibility and preserve pricing discipline are likely to navigate cost pressures more effectively and deliver stronger earnings quality despite a challenging operating environment.
Brand Innovation to Fuel Growth: Consumer preferences continue to shift toward wellness, beauty, athleticwear and experience-driven spending, creating growth opportunities across select discretionary categories. At the same time, shoppers remain selective, with stronger demand concentrated among brands that offer clear value, innovation or premium differentiation. Companies with differentiated product portfolios, compelling merchandising and strong brand equity are expected to capture a larger share of consumer spending. Continued investments in customer experience and international expansion should further support long-term growth.
Zacks Industry Rank Indicates Bright Prospects The Zacks Consumer Products-Discretionary industry is a group within the broader Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #91, which places it in the top 37% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since the beginning of 2026, the industry’s earnings estimate has risen 5.3%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Versus Broader Market The Zacks Consumer Products-Discretionary industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the Zacks S&P 500 composite over the past year.
The industry has advanced 4.5% over this period compared with the S&P 500’s rise of 22.8%. Meanwhile, the broader sector has fallen 16%.
One-Year Price Performance
Industry's Current Valuation Based on the forward 12-month price-to-sales (P/S), which is commonly used for valuing consumer discretionary stocks, the industry is currently trading at 3.16X compared with the S&P 500’s 5.05X and the sector’s 2.30X.
Over the last five years, the industry has traded as high as 14.10X and as low as 2.35X, with the median being at 3.00X, as the chart below shows.
Price-to-Sales Ratio (Past 5 Years)
4 Stocks to Watch Central Garden & Pet Company: Central Garden & Pet continues to strengthen its competitive position through a balanced portfolio of leading pet and garden brands, disciplined execution and a growing focus on innovation. The company is streamlining operations, enhancing distribution capabilities and investing in new products, digital initiatives and targeted acquisitions to drive sustainable, profitable growth. Supported by a resilient operating model, healthy customer relationships and a strong balance sheet, CENT remains well-positioned to capitalize on evolving consumer preferences and market opportunities. Its continued emphasis on operational excellence, strategic investments and portfolio optimization should support sustained long-term success.
The Zacks Consensus Estimate for Central Garden & Pet Company’s current financial-year EPS suggests growth of 5.9% from the year-ago period. CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 20.5% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: CENT
Alto Ingredients: Alto Ingredients is strengthening its long-term growth profile through a more diversified operating model, a disciplined cost structure and a growing focus on higher-value product streams. The company is investing in optimization projects, production efficiency, logistics infrastructure and carbon reduction initiatives while expanding opportunities tied to renewable fuels, biogenic CO2 and low-carbon incentives. Supported by operational improvements, strong capital discipline and a flexible asset base, Alto is well-positioned to capitalize on favorable industry trends and evolving market demand. Its continued emphasis on innovation, value-added products and strategic execution should reinforce its foundation for sustainable long-term growth.
This leading producer of specialty alcohols, renewable fuels and essential ingredients delivered a trailing four-quarter earnings surprise of 361.5%, on average. The Zacks Consensus Estimate for Alto Ingredients’ current financial-year sales and EPS calls for growth of 8.6% and 671.4%, respectively, from the year-ago period. Shares of this Zacks Rank #1 company have soared 348.4% over the past year.
Price and Consensus: ALTO
Lifetime Brands: Lifetime Brands continues to strengthen its market position through a portfolio of well-known kitchenware and home products brands, supported by disciplined pricing, operational efficiency and a steady pipeline of new product innovation. The company is benefiting from strong momentum in key categories, expanding brand partnerships, improving international operations and strategic investments in its distribution network, positioning it for enhanced profitability and growth. With a more diversified sourcing strategy, disciplined cost management and a healthy pipeline of acquisition opportunities, Lifetime is well equipped to navigate an evolving retail environment. Its continued focus on innovation, execution and operational excellence positions the company for sustained long-term success.
This global designer, developer and marketer of branded kitchenware, tableware and home solutions has a trailing four-quarter earnings surprise of 50%, on average. The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales suggests growth of 3.6% from the year-ago period. Shares of this Zacks Rank #1 company have rallied 57.7% over the past year.
Price and Consensus: LCUT
ACCO Brands: ACCO Brands is strengthening its long-term growth profile by expanding its presence in faster-growing technology peripherals while leveraging its portfolio of trusted workplace, gaming and computer accessory brands. The company is executing on strategic initiatives, including the integration of EPOS, new product innovation, cost optimization and footprint improvements, to enhance operational efficiency and support profitable growth. Supported by disciplined cost management, a diversified global footprint and a healthy product pipeline, ACCO is well-positioned to capitalize on evolving market opportunities and strengthen its competitive position. Its continued focus on innovation, strategic execution and portfolio transformation should support sustainable long-term growth and shareholder value creation.
The Zacks Consensus Estimate for ACCO Brands’ current financial-year sales and EPS suggests growth of 2.1% and 3.6%, respectively, from the year-ago period. ACCO delivered a trailing four-quarter earnings surprise of 33%, on average. Shares of this Zacks Rank #2 (Buy) company have risen 5.3% over the past year.
Key Takeaways Alto Ingredients is expanding Pekin dry mill capacity by about 8%, adding roughly 5 million gallons annually.ALTO expects higher production from Q4 2026, increasing gallons eligible for Section 45Z tax credits.Alto Ingredients is adding logistics infrastructure to improve shipment flexibility and plant efficiency. Alto Ingredients, Inc. (ALTO - Free Report) is investing in additional production capacity at the Pekin dry mill as it looks to improve operational efficiency while capturing greater value from favorable industry incentives. Rather than building new facilities, the company is focusing on debottlenecking its most efficient plant, a move designed to increase output with relatively modest capital investment while strengthening profitability.
The project will be completed during a planned outage in June and is expected to increase the Pekin dry mill's annual production capacity by about 8%, or roughly 5 million gallons. Alto Ingredients expects the higher production rates to begin contributing from the fourth quarter of 2026. The additional volumes are expected to do more than boost production. These are expected to help improve plant utilization and create additional margin opportunities by increasing the number of gallons eligible for Section 45Z clean fuel production tax credits.
The company is also investing in supporting infrastructure at Pekin. In the first quarter, Alto Ingredients started repairs on its original dock and began construction of a second alcohol loadout facility, which is expected to improve logistics and provide added flexibility for shipments.
The expansion highlights Alto Ingredients’ strategy of generating more value from existing assets rather than pursuing large-scale expansion projects. With higher output, better logistics and greater access to clean fuel incentives, Pekin is becoming a central part of the company's operational improvement efforts in 2026.
How ALTO's Strategy Compares With PeersGreen Plains Inc. (GPRE - Free Report) has been prioritizing efficiency and carbon-intensity reduction projects across its ethanol network. In the first quarter of 2026, Green Plains highlighted investments in grain storage, low-energy distillation and other upgrades aimed at improving plant economics and lowering operating costs. Green Plains also expects these projects to increase eligibility for 45Z-related benefits over time.
MGP Ingredients, Inc. (MGPI - Free Report) has also been focused on improving asset utilization and operational efficiency across its production network. In the first quarter of 2026, MGP Ingredients highlighted initiatives to improve reliability, throughput and production efficiency while reducing waste and disposal costs. MGP Ingredients is also undertaking targeted maintenance and capital projects designed to enhance operational performance and generate better returns from existing assets.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 415.5% over the past year compared with the industry’s growth of 5.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.46, lower than the industry’s average of 3.14.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Alto Ingredients (ALTO - Free Report) have been strong performers lately, with the stock up 8.1% over the past month. The stock hit a new 52-week high of $6.11 in the previous session. Alto Ingredients has gained 107.6% since the start of the year compared to the -8.8% gain for the Zacks Consumer Discretionary sector and the 7.1% return for the Zacks Consumer Products - Discretionary industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Alto Ingredients reported EPS of $0.05 versus consensus estimate of -$0.08 while it missed the consensus revenue estimate by 2.07%.
For the current fiscal year, Alto Ingredients is expected to post earnings of $0.54 per share on $996.46 in revenues. This represents a 671.43% change in EPS on a 8.56% change in revenues. For the next fiscal year, the company is expected to earn $0.83 per share on $1.03 in revenues. This represents a year-over-year change of 53.7% and 3.1%, respectively.
Valuation MetricsAlto Ingredients may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Alto Ingredients has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 13.7X versus its peer group's average of 8.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Alto Ingredients currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Alto Ingredients fits the bill. Thus, it seems as though Alto Ingredients shares could still be poised for more gains ahead.
How Does ALTO Stack Up to the Competition?Shares of ALTO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Central Garden & Pet Company (CENTA - Free Report) . CENTA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of D.
Earnings were strong last quarter. Central Garden & Pet Company beat our consensus estimate by 19.44%, and for the current fiscal year, CENTA is expected to post earnings of $2.89 per share on revenue of $2.95 billion.
Shares of Central Garden & Pet Company have gained 16% over the past month, and currently trade at a forward P/E of 13.41X and a P/CF of 9.28X.
The Consumer Products - Discretionary industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALTO and CENTA, even beyond their own solid fundamental situation.
Key Takeaways Alto Ingredients is expanding its focus on creating more value from the biogenic CO2. A third liquid CO2 storage tank in Columbia is set to expand capacity amid a tight Pacific Northwest supply.Pekin's CO2 projects could boost revenues and support greater Section 45Z tax-credit benefits. Alto Ingredients, Inc. (ALTO - Free Report) is increasingly looking beyond ethanol and positioning carbon dioxide (CO2) as a higher-value growth opportunity that could strengthen its earnings mix over time. In its first-quarter 2026 results, management highlighted investments to create greater value from its biogenic CO2 production.
One key initiative is underway at the company's Columbia facility, where a third liquid CO2 storage tank is being added to expand processing and storage capacity. The project is expected to help Alto Ingredients capitalize on strong demand in the Pacific Northwest, where supplies of premium-grade CO2 remain tight. Maintenance completed during the first quarter is also expected to improve plant reliability and support growing customer demand during the summer season.
The bigger opportunity, however, lies at Alto Ingredients' Pekin campus. Selling more liquid CO2 could increase revenues, while capturing or storing CO2 emissions could reduce the carbon intensity of its fuel production. That, in turn, could help Alto Ingredients qualify for greater benefits under the Section 45Z clean fuel tax credit program.
Management also noted that changing market conditions and evolving policy support have opened up more flexible options than before. Instead of developing a carbon capture solution entirely on its own, Alto Ingredients is evaluating opportunities with other parties that could lower capital investment requirements. The company's ongoing efforts reflect its focus on creating more value from the biogenic CO2.
What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 351.3% in the past year compared with the industry’s 5.5% growth. Shares of Green Plains have risen 150.3%, while MGP Ingredients has declined 42.8% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.4 is lower than the industry’s average of 3.11. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.73)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.
Image Source: Zacks Investment Research
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Alto Ingredients (ALTO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Alto Ingredients is one of 246 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALTO's full-year earnings has moved 184.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ALTO has returned about 80.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 9.4% on average. This means that Alto Ingredients is performing better than its sector in terms of year-to-date returns.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Central Garden (CENT - Free Report) . The stock is up 39.7% year-to-date.
For Central Garden, the consensus EPS estimate for the current year has increased 2.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, which includes 26 individual stocks and currently sits at #65 in the Zacks Industry Rank. On average, this group has gained an average of 5.4% so far this year, meaning that ALTO is performing better in terms of year-to-date returns. Central Garden is also part of the same industry.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Alto Ingredients and Central Garden as they attempt to continue their solid performance.
June 29, 2026 08:30 ET | Source: Alto Ingredients, Inc.
PEKIN, Ill., June 29, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols, today announced it has been added to the Russell 2000® and Russell 3000® Indexes, effective after the close of U.S. markets on Friday, June 26, 2026.
"Joining the Russell 2000® and Russell 3000® Indexes is an exciting milestone for Alto Ingredients as we build on our operational momentum and continue executing initiatives designed to improve profitability, diversify revenue streams and unlock long-term value for our shareholders,” said Bryon McGregor, President and Chief Executive Officer. “We look forward to the expanded institutional exposure this brings Alto Ingredients.”
The Russell US Indexes are among the most widely referenced benchmarks in the investment community, used by institutional investors and asset managers for index funds and active investment strategies alike.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expectations about future profitability, revenue diversification, long-term shareholder value and the anticipated benefits of inclusion in the Russell indexes. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. Forward-looking statements are based on current expectations, estimates, assumptions and projections and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, commodity price volatility, regulatory changes, market conditions, and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2026. Alto Ingredients assumes no obligation, and does not intend, to update any forward-looking statements, except as required by law.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755 [email protected]
Key Takeaways Alto Ingredients returned to profitability in Q1 2026 as adjusted EBITDA improved to $4.7 million.Alto Ingredients expects about $15 million in annual net proceeds from qualifying 45Z production volumes.Green Plains produced 174 million gallons of ethanol in Q1 2026 while operating at 97% of capacity. Alto Ingredients, Inc. (ALTO - Free Report) and Green Plains Inc. (GPRE - Free Report) are two prominent players in the U.S. biofuels industry, with business models centered on producing ethanol and other value-added agricultural products. While Alto Ingredients has increasingly diversified into specialty alcohols and essential ingredients for industrial and consumer applications, Green Plains has focused on transforming itself into a higher-margin producer of sustainable ingredients, renewable corn oil and low-carbon products.
The comparison between ALTO and GPRE is especially relevant as investors reassess the outlook for ethanol producers amid volatile corn prices, evolving renewable fuel policies and growing demand for low-carbon energy solutions. Both companies are navigating the same macroeconomic and regulatory environment but pursuing different strategic paths, making them an intriguing pair for evaluating growth potential, profitability and long-term positioning in the energy transition.
Let's discuss in detail.
The Case for Alto Ingredients StockAlto Ingredients operates as a diversified producer of renewable fuels, specialty alcohols and essential ingredients, supplying customers across health, beauty, food, beverage, industrial and agricultural markets. The company's diversified portfolio and focus on higher-value products are contributing to a meaningful improvement in operating performance. In the first quarter of 2026, Alto Ingredients returned to profitability with earnings of 5 cents per share, against a loss of 16 cents a year earlier, while adjusted EBITDA improved to $4.7 million from negative $4.4 million, reflecting the benefits of its strategic realignment, stronger export demand and improved crush margins.
Another major catalyst has been stronger industry fundamentals and a more favorable product mix. Robust export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices supported margins. The company's crush margins increased to 17 cents per gallon from just 2 cents a year ago, while essential ingredients returns improved to 53.4% from 48.2%. Management also remains optimistic about demand growth from export markets and year-round E15 adoption.
Operational improvements and expansion projects are further supporting the company’s long-term outlook. Alto Ingredients is investing in projects to improve reliability, increase utilization and expand capacity. A debottlenecking project at the Pekin dry mill is expected to raise annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments are expected to enhance operational flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives that could provide additional earnings opportunities over time.
Alto Ingredients is benefiting from growing opportunities tied to Section 45Z tax credits and improving financial flexibility. The company recognized $3.9 million in tax-credit earnings in the first quarter and expects roughly $15 million in annual net proceeds from qualifying production volumes. Positive operating cash flow, lower debt and more than $94 million in borrowing capacity have further strengthened the company's balance sheet and financial flexibility.
The Case for Green Plains StockGreen Plains has established itself as a prominent player in the U.S. biofuels industry, operating a network of eight ethanol plants and maintaining a significant presence in domestic biofuel production. The company produced 174 million gallons of ethanol in the first quarter of 2026 while operating at 97% of capacity, underscoring the scale, utilization rates and efficiency of its production platform.
The business has evolved beyond conventional ethanol manufacturing into a diversified portfolio of value-added products and services. Alongside ethanol, Green Plains generates revenues from renewable corn oil, ultra-high protein ingredients, grain handling, commodity marketing and carbon-related activities. This broader product mix expands the company's exposure across agricultural, feed, energy and low-carbon markets.
Green Plains continues to focus on improving plant reliability, increasing processing yields and lowering carbon intensity across its facilities. The company is directing capital toward grain storage expansion, low-energy distillation upgrades and yield-enhancement technologies designed to improve efficiency and strengthen operating performance. Benchmarking initiatives and data-driven analytics are also helping identify productivity gains across the production network.
Green Plains is also benefiting from the growing contribution of its carbon platform and Section 45Z production tax credits. Net production tax credits contributed $55.2 million to adjusted EBITDA in the first quarter, supported by the first full quarter of carbon sequestration operations at its three Nebraska facilities. The company expects its carbon strategy to contribute between $200 million and $225 million of EBITDA in 2026, while strong liquidity provides additional financial flexibility.
Valuation & Price Performance of ALTO & GPREAlto Ingredients currently trades at a forward price-to-sales ratio of 0.38, representing a modest discount to Green Plains, which trades at 0.52.
P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Over the last three months, Alto Ingredients has emerged as the stronger performer, rising 10.4% while Green Plains lost 11.8%.
Three Months Price Performance
Image Source: Zacks Investment Research
Bottom Line: ALTO Appears Better Positioned for GrowthBoth Alto Ingredients and Green Plains are evolving beyond traditional ethanol production, but the former currently offers a more compelling turnaround and valuation story. Its improving profitability, stronger crush margins, growing specialty alcohol and ingredients business, and exposure to Section 45Z incentives provide multiple avenues for earnings growth. While Green Plains continues to advance its low-carbon and carbon capture initiatives and benefits from greater scale, ALTO's improving operational execution, strengthening balance sheet and leverage to improve industry fundamentals could position the stock to deliver stronger upside potential over the near to medium term.
Both ALTO and GPRE sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alto Ingredients is executing a successful turnaround, shifting to a leaner, more resilient business model with improved profitability and operational focus. Q1 2026 results highlighted strong profitability, robust crush margins, and material contributions from Section 45Z tax credits, supporting sustainable earnings momentum. ALTO's valuation, growth, and momentum metrics significantly outperform sector medians, with 482% 1-year price performance and EBITDA growth of 696% YoY.
DALLAS--(BUSINESS WIRE)--ALTO Real Estate Funds is pleased to announce the successful execution of a full-building lease with a major 3rd party logistics company at ALTO Pinto 45, a 586,919 SF Class A industrial facility in South Dallas.
The lease marks a major milestone for the project, delivering 100% occupancy and securing a global logistics leader as the long-term tenant. With lease execution completed in May 2026 and operations expected to commence in August 2026, this transaction reinforces the strength of the Dallas logistics market and the continued demand for well-located, institutional-quality industrial product.
ALTO Pinto 45 is strategically positioned to serve regional and national distribution needs, benefiting from proximity to key transportation corridors and intermodal infrastructure. The lease with a major 3rd party logistics company, a globally recognized leader in supply chain and logistics further validates the asset’s design, location, and execution.
“This success was the result of a highly coordinated effort across ALTO’s investment, development, and operating teams, alongside strong collaboration with our partners, consultants, and leasing team” said Yaniv Melamud, CEO at ALTO. “We are proud to bring a best-in-class tenant to the project and deliver a fully leased outcome for our investors”.
ALTO continues to actively develop and invest in Class A industrial properties across Dallas-Fort Worth, Houston, and Austin, focusing on locations that benefit from long-term population growth, infrastructure investment, and evolving supply chain demand.
About ALTO Real Estate Funds
ALTO Real Estate Funds is an investment firm focused on the acquisition and development of logistics assets in Texas and open-air shopping centers throughout the U.S. Sun Belt. Over its 16-year track record, ALTO has invested in 83 properties totaling 15 million square feet. The firm focuses on institutional-quality assets in high-growth markets and seeks to create value through operational expertise, disciplined execution, and active asset management.
Key Takeaways Alto Ingredients lifted its return on essential ingredients to 53.4% from 48.2% a year earlier.Higher corn oil prices, driven by renewable biofuels demand, added $2.2 million to quarterly revenues.The Pekin Campus return improved to 54% from 48%, reflecting better byproduct economics. Alto Ingredients, Inc. (ALTO - Free Report) generated more value from every bushel of corn it processed in the first quarter of 2026, even as weather-related disruptions at its Pekin campus weighed on production volumes. The improvement reflected the company's ability to derive higher returns from its co-products while benefiting from lower feedstock costs.
The company’s consolidated return on essential ingredients, which measures co-product revenues relative to total corn costs consumed, increased to 53.4% in the first quarter of 2026 from 48.2% in the year-ago period. The improvement came even as the company faced softer demand and increased competition in high-quality alcohol markets.
Much of the improvement was driven by stronger pricing across Alto Ingredients’ co-product portfolio. In particular, higher corn oil prices, supported by demand from renewable biofuels producers, provided a $2.2 million boost to revenues during the quarter. At the same time, the company also benefited from lower corn costs, which further enhanced returns from its corn-processing operations.
The Pekin Campus accounted for a significant portion of the gains. Its essential ingredients return improved to 54% from 48% a year earlier, reflecting better economics across the company's mix of byproducts. With stronger co-product economics and a lower-cost grain environment, Alto Ingredients was able to extract greater value from the same underlying corn input.
The results highlight the importance of co-products in Alto Ingredients' corn-processing economics, with stronger pricing helping it derive greater value from each bushel of corn processed.
What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 352.3% in the past year compared with the industry’s 3% growth. Shares of Green Plains have risen 166.1%, while MGP Ingredients has declined 44.2% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.39 is lower than the industry’s average of 3. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.70).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year earnings per share (EPS) implies a year-over-year surge of 671.4%, while the consensus mark for the next fiscal year’s EPS implies growth of 53.7%.
Image Source: Zacks Investment Research
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DALLAS--(BUSINESS WIRE)--ALTO Real Estate Funds is pleased to announce the successful execution of a full-building lease with a major 3rd party logistics company at ALTO Pinto 45, a 586,919 SF Class A industrial facility in South Dallas.
The lease marks a major milestone for the project, delivering 100% occupancy and securing a global logistics leader as the long-term tenant. With lease execution completed in May 2026 and operations expected to commence in August 2026, this transaction reinforces the strength of the Dallas logistics market and the continued demand for well-located, institutional-quality industrial product.
ALTO Pinto 45 is strategically positioned to serve regional and national distribution needs, benefiting from proximity to key transportation corridors and intermodal infrastructure. The lease with a major 3rd party logistics company, a globally recognized leader in supply chain and logistics further validates the asset’s design, location, and execution.
“This success was the result of a highly coordinated effort across ALTO’s investment, development, and operating teams, alongside strong collaboration with our partners, consultants, and leasing team” said Yaniv Melamud, CEO at ALTO. “We are proud to bring a best-in-class tenant to the project and deliver a fully leased outcome for our investors”.
ALTO continues to actively develop and invest in Class A industrial properties across Dallas-Fort Worth, Houston, and Austin, focusing on locations that benefit from long-term population growth, infrastructure investment, and evolving supply chain demand.
About ALTO Real Estate Funds
ALTO Real Estate Funds is an investment firm focused on the acquisition and development of logistics assets in Texas and open-air shopping centers throughout the U.S. Sun Belt. Over its 16-year track record, ALTO has invested in 83 properties totaling 15 million square feet. The firm focuses on institutional-quality assets in high-growth markets and seeks to create value through operational expertise, disciplined execution, and active asset management.
Key Takeaways Alto Ingredients' shares rose 373.5% in a year, outperforming the S&P 500 and peers.Alto Ingredients returned to profit in Q1 2026 as EBITDA and gross profit turned positive.Alto Ingredients recognized $3.9 million in Section 45Z tax-credit earnings in the first quarter. Alto Ingredients, Inc. (ALTO - Free Report) has emerged as one of the strongest performers within its industry over the past year. Shares of ALTO have soared 373.5% in the past year, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 26.7% and the Consumer Products - Discretionary industry gained 3%, while the broader Consumer Discretionary sector declined 11.1%.
Alto Ingredients has also substantially outperformed several key peers, including Green Plains Inc. (GPRE - Free Report) , Gevo, Inc. (GEVO - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) . Green Plains gained 147.7% and Gevo rose 3.6% over the same period, while MGP Ingredients declined 45.2%. ALTO's remarkable one-year performance underscores a strong momentum and has made it one of the best-performing stocks in the peer group.
ALTO Stock Past Year Performance
Image Source: Zacks Investment Research
As of the latest trading session, Alto Ingredients closed at $5.54, just 7.7% below its 52-week high of $6.00 reached on May 5, 2026. The stock is trading above the 50 and 200-day moving averages. Trading above these averages signals bullish sentiment.
Image Source: Zacks Investment Research
This exceptional outperformance has put Alto Ingredients in the spotlight and strengthened investor confidence in its improving fundamentals. The recent rally reflects optimism surrounding higher-margin product sales, favorable industry conditions, expanding opportunities from Section 45Z tax credits and ongoing operational improvements. With profitability recovering and multiple growth initiatives underway, investors are increasingly viewing Alto Ingredients’ turnaround story more favorably. Let’s examine the key drivers behind ALTO’s rally.
What’s Fueling Alto Ingredients’ Rally?Alto Ingredients’ rally is being driven by a sharp improvement in profitability and operating performance. In the first quarter of 2026, the company reported earnings of 5 cents per share against a loss of 16 cents in the year-ago quarter. Adjusted EBITDA improved to $4.7 million from a negative $4.4 million, while gross profit swung to $9.2 million from a gross loss of $1.8 million. The results underscored the success of ALTO’s strategic realignment and enhanced earnings power.
Another major catalyst has been stronger industry fundamentals and a more favorable product mix. Robust export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices supported margins. Board crush margins increased to 17 cents per gallon from just 2 cents a year ago, while essential ingredients returns improved to 53.4% from 48.2%. Management also remains optimistic about demand growth from export markets and year-round E15 adoption.
Operational improvements and expansion projects are further supporting the company’s long-term outlook. Alto Ingredients is investing in projects to improve reliability, increase utilization and expand capacity. A debottlenecking project at the Pekin dry mill is expected to raise annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments should enhance flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives that could provide additional earnings opportunities over time.
Investors are also encouraged by Alto Ingredients’ growing opportunities from Section 45Z tax credits and improving financial flexibility. The company recognized $3.9 million in tax-credit earnings during the first quarter and expects roughly $15 million in annual net proceeds from qualifying production volumes. Positive operating cash flow, lower debt and more than $94 million in borrowing capacity have further strengthened confidence in Alto Ingredients’ ability to create long-term shareholder value.
Alto Ingredients Stock’s ValuationAlto Ingredients is currently trading at a discount relative to the broader industry and several peers. The stock's forward price-to-sales ratio of 0.43 is lower than the industry average of 2.95 and the sector average of 2.31. The company is trading at a discount to Green Plains, Gevo and MGP Ingredients, whose forward price-to-sales ratios are 0.53, 1.80 and 0.70, respectively.
ALTO’s Valuation Compared to IndustryImage Source: Zacks Investment Research
Here’s Why Alto Ingredients Can Be an Attractive PlayAlto Ingredients’ strong rally is being supported by improving profitability, favorable industry conditions and expanding opportunities from Section 45Z tax credits. The company’s focus on operational optimization, capacity expansion and higher-value product streams is strengthening its earnings profile and enhancing the long-term growth prospects.
Despite its sharp rally over the past year, Alto Ingredients continues to trade at an attractive valuation relative to the industry and several key peers. With improving earnings momentum, solid financial flexibility and multiple growth initiatives underway, this Zacks Rank #1 (Strong Buy) stock appears well positioned for investors seeking exposure to the renewable fuels market and long-term growth opportunities.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Alto Ingredients has rallied more than 300% over the last year, but the stock still trades at a discount to the sector. Gross profit improved sharply year over year, helped by stronger crush margins, export demand, 45Z tax credits, and derivative gains. Scenario analysis shows ALTO trades at a 33–40% P/E discount to peers, with 2027 base and bull cases offering 73–98% upside; I rate it Strong Buy.
Key Takeaways ALTO booked $3.9M in Section 45Z credit earnings in the first quarter of 2026.Alto Ingredients expects 90M qualifying gallons and about $15M in annual net proceeds.ALTO is pursuing lower carbon scores and adding capacity to raise credit value over time. Alto Ingredients, Inc. (ALTO - Free Report) is beginning to see meaningful benefits from Section 45Z tax credits, with the incentive emerging as an important source of incremental earnings. The company recorded $3.9 million in 45Z credit earnings in the first quarter of 2026, offering an early look at the program’s financial potential. Management expects roughly 90 million gallons of combined annual production from its Columbia and Pekin dry mill facilities to qualify for the credit at approximately 20 cents per gallon, translating into about $15 million in annual net proceeds after monetization costs.
What makes the opportunity particularly noteworthy is that Alto Ingredients views the current benefit as only the starting point. The company is actively pursuing ways to qualify additional gallons and reduce carbon-intensity scores, both of which could increase the value captured under the program. Several operational initiatives are tied directly to this effort, including reliability improvements at Columbia, production optimization projects and a debottlenecking initiative at the Pekin dry mill that is expected to add roughly 5 million gallons of annual capacity.
Management has also highlighted longer-term opportunities tied to carbon-reduction strategies, including the use of low-carbon-intensity corn and potential CO2 utilization and sequestration projects. These efforts could improve carbon scores and expand eligibility for higher-value credits over time.
The significance of 45Z extends beyond the immediate financial benefit. The program creates incentives for operational improvements and lower-carbon production, giving Alto Ingredients multiple avenues to enhance the value generated from its fuel operations. While the company is already realizing meaningful earnings from the credit, ongoing investments could further expand the opportunity in the years ahead.
What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 387.2% in the past year compared with the industry’s 3% growth. Shares of Green Plains have risen 158.2%, while MGP Ingredients has declined 44.5% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.44 is lower than the industry’s average of 2.95. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.70).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year earnings per share (EPS) implies a year-over-year surge of 671.4%, while the consensus mark for the next fiscal year’s EPS implies growth of 53.7%.
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
June 15, 2026 08:30 ET | Source: Alto Ingredients, Inc.
PEKIN, Ill., June 15, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, announced that it has completed a sale transaction with a third-party corporate buyer for all of Alto Ingredients’ 2025 Section 45Z Clean Fuel Production Tax Credits generated from its low-carbon ethanol production.
These credits relate to the company’s 2025 low-carbon transportation fuels produced at both its Pekin Dry Mill and Columbia facilities. The company sold its 2025 tax credits for approximately $8.9 million in cash proceeds, before broker fees and other transaction costs, in line with the company’s previous expectations.
“We are pleased to execute on our strategy to monetize our low-carbon fuel tax credits under Section 45Z,” said Rob Olander, Alto Ingredients’ Chief Financial Officer. “The ability to monetize these credits provides a meaningful source of cash to support our initiatives and increase shareholder value.”
The company expects to continue to benefit significantly from its 2026 and future years’ Section 45Z Clean Fuel Production Tax Credits.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expectation to benefit from and to monetize its 2026 and future years’ Section 45Z Clean Fuel Production Tax Credits. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. Forward-looking statements are based on current expectations, estimates, assumptions and projections and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, changes in applicable tax laws and regulations or related guidance (including with respect to Section 45Z), Alto Ingredients’ ability to continue to qualify for and generate Section 45Z Clean Fuel Production Tax Credits at anticipated levels, actual operating performance and production volumes, fluctuations in feedstock and energy costs, market conditions and pricing for low-carbon fuels, the availability of and demand from third-party buyers for such tax credits on acceptable terms, and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2026.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755 [email protected]
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 15:
Pebblebrook Hotel Trust (PEB - Free Report) : This publicly traded real estate investment trust carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 5% over the last 60 days.
Pebblebrook Hotel Trust has a price-to-earnings ratio (P/E) of 10.84 compared with 13.70 for the industry. The company possesses a Value Scoreof A.
GDS Holdings Limited (GDS - Free Report) : This data center company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 222.8% over the last 60 days.
GDS Holdings Limited has a price-to-earnings ratio (P/E) of 5.76 compared with 9.80 for the industry. The company possesses a Value Score of A.
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty chemicals company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 184.21% over the last 60 days.
Alto Ingredients has a price-to-earnings ratio (P/E) of 10.56 compared with 12.20 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Alto Ingredients (ALTO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Alto Ingredients is a member of our Consumer Discretionary group, which includes 246 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ALTO's full-year earnings has moved 184.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ALTO has moved about 96.2% on a year-to-date basis. In comparison, Consumer Discretionary companies have returned an average of -8%. This means that Alto Ingredients is outperforming the sector as a whole this year.
Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Central Garden (CENT - Free Report) . The stock has returned 31.8% year-to-date.
The consensus estimate for Central Garden's current year EPS has increased 2.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, which includes 26 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, this group has gained an average of 2.8% so far this year, meaning that ALTO is performing better in terms of year-to-date returns. Central Garden is also part of the same industry.
Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Central Garden. These stocks will be looking to continue their solid performance.
— Randomized, placebo-controlled, Phase 2a trial demonstrated robust, statistically significant antidepressant effects of ALTO-207 and favorable tolerability; supporting development of ALTO-207 in ~7 million patient treatment-resistant depression market —
— Phase 2b Ongoing with topline data expected in 2H 2027 —
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Alto Neuroscience, Inc. (NYSE: ANRO), a clinical-stage biopharmaceutical company focused on precision medicines for neuropsychiatric disorders, today announced the presentation of data from a randomized, single-blind, placebo-controlled Phase 2a trial of ALTO-207 (formerly CTC-501) in patients with Major Depressive Disorder (MDD). The data were presented in a poster session at the 2026 Annual Meeting of the Society of Biological Psychiatry (SOBP).
ALTO-207 is a fixed-dose combination of pramipexole, a dopamine D3/D2 agonist with antidepressant activity demonstrated across multiple prior studies, and ondansetron, a 5-HT3 antagonist anti-emetic. The novel, patent-protected combination is designed to enable faster titration to higher pramipexole doses by reducing dose-limiting nausea and vomiting — the key barrier that has historically prevented patients from reaching therapeutically effective doses of pramipexole in clinical practice.
Presentation Highlights; Phase 2a Trial Design and Results
The trial enrolled 32 adults with MDD (mean age 42.8; 47% female; baseline MADRS 28.5). Participants were titrated to a maximum of 5 mg/day pramipexole, with ondansetron fixed at 16 mg/day, followed by an outpatient maintenance period. Efficacy was assessed using the Montgomery-Åsberg Depression Rating Scale (MADRS) and the Clinical Global Impression – Severity scale (CGI-S), analyzed by Mixed Models for Repeated Measures (MMRM).
Titration: Participants reached a mean pramipexole dose of 4.1 mg within 8 days; 60% tolerated the maximum 5 mg dose by day 12. MADRS: ALTO-207 showed a statistically significant reduction in depressive symptoms versus placebo at Week 6 (Cohen's d=1.67, p=0.0004) and Week 8 (d=1.1, p=0.025). CGI-S: A statistically significant reduction in illness severity was observed at Week 6 (d=1.27, p=0.007) and Week 8 (d=1.0, p=0.04). Tolerability: No participants in the ALTO-207 arm discontinued due to adverse events during the maintenance phase. Treatment-related nausea was reported in 15% of ALTO-207 participants during the post-titration maintenance period. The titration schedule being employed in the ongoing Phase 2b trial has been modified with the goal of further improving tolerability. "These Phase 2a results validate the core premise of ALTO-207: that pairing pramipexole with ondansetron allows patients to reach doses that have been associated with greater antidepressant effect, but are rarely achieved with pramipexole alone,” said Amit Etkin, M.D., Ph.D., founder and chief executive officer of Alto Neuroscience. “The effect sizes observed, and the durability of response through Week 8, together with the external PAX-D positive results, gave us the confidence to advance ALTO-207 into a potentially registrational Phase 2b trial in treatment-resistant depression. We believe the direct dopaminergic mechanism of ALTO-207 addresses a gap that existing antidepressants do not."
About ALTO-207
ALTO-207 is a fixed-dose combination of pramipexole, a dopamine D3-preferring D3/D2 agonist, approved for the treatment of Parkinson’s disease with demonstrated antidepressant effect, and ondansetron, an antiemetic, selective 5-HT3 receptor antagonist. As a fixed-dose combination, ALTO-207 is designed to enable rapid titration and higher dosing by mitigating the dose-limiting adverse events typically experienced with pramipexole. ALTO-207 is being developed to address the significant unmet need for patients with treatment resistant depression.
In a randomized, placebo-controlled Phase 2a clinical trial evaluating ALTO-207 in 32 patients with depression ALTO-207 met primary and secondary endpoints demonstrating significantly greater improvements on MADRS compared to placebo. Patients randomized to receive ALTO-207 reached a mean dose of 4.1mg per day. ALTO-207 was well tolerated in the maintenance period of the study with an adverse event rate similar to placebo.
About Treatment-Resistant Depression (TRD)
Treatment-resistant depression (TRD) is a serious form of major depressive disorder (MDD), typically defined as inadequate response to at least two prior antidepressant treatments of adequate dose and duration. Despite the availability of multiple therapies, approximately one-third of patients with MDD do not achieve sufficient symptom relief with standard treatments.
MDD affects approximately 21 million adults in the United States each year, suggesting that an estimated 6–7 million individuals may suffer from TRD. Patients with TRD often experience persistent, recurrent symptoms, increased risk of hospitalization and suicide, and significant impairment in daily functioning.
TRD represents a substantial unmet medical need and a disproportionate share of the overall economic burden of depression, driven by higher healthcare utilization, reduced productivity, and long-term disability. Current treatment approaches are frequently characterized by a trial-and-error process, delayed onset of action, substantial side effect burden, and limited rates of sustained response.
About Alto Neuroscience
Alto Neuroscience is a clinical-stage biopharmaceutical company with a mission to redefine psychiatry by leveraging neurobiology to develop personalized and highly effective treatment options. Alto’s Precision Psychiatry Platform™ measures brain biomarkers by analyzing EEG activity, neurocognitive assessments, wearable data, and other factors to better identify which patients are more likely to respond to Alto product candidates. Alto’s clinical-stage pipeline includes novel drug candidates in bipolar depression, major depressive disorder, treatment resistant depression, schizophrenia, and other mental health conditions. For more information, visit www.altoneuroscience.com or follow Alto on X.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “look forward,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding Alto’s expectations about the potential benefits, activity, effectiveness, tolerability and safety of its product candidates and Precision Psychiatry Platform (“Platform”); statements regarding Alto’s expectations for the design, timing, and results of its Phase 2b and planned Phase 3 trials of ALTO-207; Alto’s expectations with regard to the general design and results of its research and development programs and clinical trials, including the timing of enrollment and the timing and availability of data from such trials; Alto’s clinical development plans for its product candidates, including the timing or likelihood of approvals for its product candidates; Alto’s business strategy, financial position, including anticipated cash runway, and the sufficiency of its financial resources to fund its operations through expected milestones; and other statements that are not historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including uncertainties inherent in the initiation, progress and completion of clinical trials and development of Alto’s product candidates; availability and timing of results from clinical trials; the risk that clinical trials may have unsatisfactory outcomes; the risk that Alto’s projections regarding its financial position and expected cash runway are inaccurate or that its conduct of its business requires more cash than anticipated; and other important factors, any of which could cause Alto’s actual results to differ from those contained in the forward-looking statements, which are described in greater detail in the section titled “Risk Factors” in Alto’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) as well as in other filings Alto may make with the SEC in the future. Any forward-looking statements contained in this press release speak only as of the date hereof, and Alto expressly disclaims any obligation to update any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances or otherwise, except as required by law.
Availability of Information on Alto’s Website
Alto routinely uses its investor relations website to post presentations to investors and other important information, including information that may be material. Accordingly, Alto encourages investors and others interested in Alto to review the information it makes public on its investor relations website.
Q1 2026 Gross Profit of $9.2 Million Increased $11.0 Million
Q1 2026 Net Income of $4.0 Million, or $0.05 per Share, Improved $16.0 Million
Q1 2026 Adjusted EBITDA of $4.7 Million Improved $9.1 Million Compared to Q1 2025
PEKIN, Ill., May 06, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a producer and distributor of renewable fuels, essential ingredients and specialty alcohols, reported its financial results for the quarter ended March 31, 2026.
“In a seasonally weak period for Alto and the industry, we delivered profitability on an adjusted EBITDA and net income basis through the contributions of strong export sales, higher crush margins and incremental earnings from Section 45Z tax credits. Even without the contribution of the tax credits we were profitable,” said President and Chief Executive Officer Bryon McGregor. “Our strategic realignment, combined with our efforts to improve our operational model and the stability of our business have enhanced our earnings power.”
Added Mr. McGregor, “Looking ahead, our priorities are straightforward: improve utilization and reliability; execute our 2026 optimization and capital projects on time and on budget; and leverage the flexibility we have with multiple revenue streams to respond to market shifts and perform profitably through commodity cycles. In addition, we are focused on expanding the value we capture from 45Z tax credits and on optimally monetizing the value of our biogenic CO2 production across our facilities to lower our carbon footprint. Through our focus on these priorities, we remain committed to enhancing the value of our assets.”
Financial Results for the Three Months Ended March 31, 2026 Compared to 2025
Net sales were $224.7 million, compared to $226.5 million.Cost of goods sold was $215.5 million, compared to $228.3 million.Gross profit was $9.2 million, compared to a gross loss of $1.8 million. Gross profit was positively impacted by an $8.1 million net unrealized gain on derivatives.Selling, general and administrative expenses were $6.7 million, compared to $7.2 million.Interest expense was $2.2 million, compared to $2.7 million.Net income attributable to common stockholders was $4.0 million, or $0.05 per diluted share, compared to a net loss of $12.0 million, or $0.16 per share.Adjusted EBITDA was $4.7 million, compared to negative $4.4 million, an increase of $9.1 million. Cash and cash equivalents at March 31, 2026 were $20.3 million, compared to $23.4 million at December 31, 2025. The company’s borrowing availability at March 31, 2026 was $94.3 million, including $29.3 million under the company’s operating line of credit and $65 million under its term loan facility.
First Quarter 2026 Results Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 6, 2026, and will deliver prepared remarks via webcast followed by a question-and-answer session.
To receive a number and unique PIN by email, register here. To dial directly up to 20 minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. Alternatively, the webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com and will be available for one year.
Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision (benefit) for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense, excess insurance proceeds and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expectations around profitability and executing on opportunities to grow earnings, including through improved utilization and reliability, optimization and capital projects, monetizing additional Section 45Z tax credits and monetizing the value of its biogenic CO2 to lower its carbon footprint; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and within budget execute on its optimization and capital projects; Alto Ingredients’ ability to expand and monetize the value of its CO2 production to lower its carbon footprint; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities, and realize the expected results, under existing and new legislation, including the Section 45Z regulations, and to successfully apply for and receive anticipated credit amounts. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2026.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755 [email protected]
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data) Three Months Ended
March 31, 2026 2025 Net sales$224,680 $226,540 Cost of goods sold 215,461 228,347 Gross profit (loss) 9,219 (1,807)Selling, general and administrative expenses 6,699 7,190 Income (loss) from operations 2,520 (8,997)Interest expense, net (2,198) (2,729)Transferable tax credits, net 3,900 — Other income, net 49 47 Income (loss) before provision for income taxes 4,271 (11,679)Provision for income taxes — — Net income (loss)$4,271 $(11,679)Preferred stock dividends$(312)$(312)Net income (loss) attributable to common stockholders$3,959 $(11,991)Net income (loss) per share, basic$0.05 $(0.16)Net income (loss) per share, diluted$0.05 $(0.16)Weighted-average shares outstanding, basic 74,789 73,836 Weighted-average shares outstanding, diluted 76,639 73,836 ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
ASSETS March 31,
2026 December 31,
2025 Current Assets: Cash and cash equivalents$20,309 $23,415 Restricted cash 1,334 2,258 Accounts receivable, net 59,700 55,069 Inventories 52,831 61,676 Derivative instruments 7,831 525 Transferable tax credits, net 11,530 7,500 Other current assets 5,017 5,474 Total current assets 158,552 155,917 Property and equipment, net 193,199 198,501 Other Assets: Right of use operating lease assets, net 17,215 16,931 Intangible assets, net 7,419 7,574 Other assets 9,908 9,863 Total other assets 34,542 34,368 Total Assets$386,293 $388,786 ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)
LIABILITIES AND STOCKHOLDERS’ EQUITY March 31,
2026 December 31,
2025 Current Liabilities: Accounts payable$19,303 $14,509 Accrued liabilities 12,332 16,691 Current portion – long-term debt — 16,600 Current portion – operating leases 4,975 4,958 Derivative instruments 301 1,067 Other current liabilities 4,741 5,246 Total current liabilities 41,652 59,071 Long-term debt 73,056 63,027 Operating leases, net of current portion 13,240 13,012 Other liabilities 8,467 8,435 Total Liabilities 136,415 143,545 Stockholders’ Equity: Preferred stock, $0.001 par value; 10,000 shares authorized;
Series A: no shares issued and outstanding as of
March 31, 2026 and December 31, 2025
Series B: 927 shares issued and outstanding as of
March 31, 2026 and December 31, 2025 1 1 Common stock, $0.001 par value; 300,000 shares
authorized; 77,946 and 77,307 shares issued and
outstanding as of March 31, 2026 and December 31,
2025, respectively 78 77 Non-voting common stock, $0.001 par value; 3,553
shares authorized; 1 share issued and outstanding as
of March 31, 2026 and December 31, 2025 — — Additional paid-in capital 1,052,472 1,051,795 Accumulated other comprehensive income 5,461 5,461 Accumulated deficit (808,134) (812,093)Total Stockholders’ Equity 249,878 245,241 Total Liabilities and Stockholders’ Equity$386,293 $388,786 Reconciliation of Adjusted EBITDA to Net Income (Loss)
Three Months Ended
March 31,(in thousands) (unaudited) 2026 2025 Net income (loss)$4,271 $(11,679)Adjustments: Interest expense 2,198 2,729 Interest income (77) (84)Unrealized derivatives gains (8,073) (1,634)Depreciation and amortization expense 6,366 6,266 Total adjustments 414 7,277 Adjusted EBITDA$4,685 $(4,402) Segment Financials
(in thousands) (unaudited)Three Months Ended
March 31,
2026 2025 Net sales Pekin Campus production: Alcohol sales$107,952 $107,234 Essential ingredient sales 43,993 44,618 Intersegment sales 262 297 Total Pekin Campus sales 152,207 152,149 Marketing and distribution: Alcohol sales$47,326 $49,058 Intersegment sales 2,450 2,506 Total marketing and distribution sales 49,776 51,564 Western production: Alcohol sales$16,680 $16,194 Essential ingredient sales 7,280 7,808 Intersegment sales 399 264 Total Western production sales 24,359 24,266 Corporate and other 1,449 1,628 Intersegment eliminations (3,111) (3,067)Net sales as reported$224,680 $226,540 Cost of goods sold: Pekin Campus production$144,021 $155,222 Marketing and distribution 46,037 47,650 Western production 25,502 25,524 Corporate and other 1,036 1,681 Intersegment eliminations (1,135) (1,730)Cost of goods sold as reported$215,461 $228,347 Gross profit (loss): Pekin Campus production$8,186 $(3,073)Marketing and distribution 3,739 3,914 Western production (1,143) (1,258)Corporate and other 413 (53)Intersegment eliminations (1,976) (1,337)Gross profit (loss) as reported$9,219 $(1,807) Sales and Operating Metrics (unaudited)
(in thousands) (unaudited)Three Months Ended
March 31,
2026 2025 Alcohol Sales (gallons in millions) Pekin Campus renewable fuel gallons sold 31.2 32.6 Western production renewable fuel gallons sold 8.2 8.3 Third party renewable fuel gallons sold 23.5 24.4 Total renewable fuel gallons sold 62.9 65.3 Specialty alcohol gallons sold 23.0 24.3 Total gallons sold 85.9 89.6 Sales Price per Gallon Pekin Campus$2.00 $1.90 Western production$2.03 $1.95 Marketing and distribution$2.01 $2.01 Average sales price per gallon$2.00 $1.93 Alcohol Production (gallons in millions) Pekin Campus 51.2 54.3 Western production 7.9 8.3 Total 59.1 62.6 Corn Cost per Bushel Pekin Campus$4.45 $4.65 Western production$5.54 $5.95 Total$4.58 $4.81 Average Market Metrics PLATTS Ethanol price per gallon$1.73 $1.71 CME Corn cost per bushel$4.38 $4.72 Board corn crush per gallons (1)$0.17 $0.02 Essential Ingredients Sold (thousand tons) Pekin Campus: Distillers grains 80.4 90.7 CO2 43.3 45.3 Corn wet feed 29.9 34.5 Corn dry feed 21.0 23.8 Corn oil and germ 18.1 19.6 Corn meal 9.5 9.4 Syrup and other 9.2 8.2 Yeast 6.1 6.4 Total Pekin Campus essential ingredients sold 217.5 237.9 Western production: Distillers grains 60.1 58.1 CO2 12.8 12.6 Corn oil 0.8 1.4 Syrup and other 0.8 0.8 Total Western production essential ingredients sold 74.5 72.9 Total Essential Ingredients Sold 292.0 310.8 Essential ingredients return % (2) Pekin Campus return 54.0% 48.0%Western production return 49.9% 49.0%Consolidated total return 53.4% 48.2% ________________
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
(2) Essential ingredients revenues as a percentage of total corn costs consumed.
Alto Ingredients (ALTO - Free Report) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to a loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +162.50%. A quarter ago, it was expected that this ethanol producer would post earnings of $0.02 per share when it actually produced earnings of $0.19, delivering a surprise of +850%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Alto Ingredients, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $224.68 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.07%. This compares to year-ago revenues of $226.54 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Alto Ingredients shares have added about 108% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Alto Ingredients?While Alto Ingredients has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Alto Ingredients was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $242.27 million in revenues for the coming quarter and $0.19 on $989.01 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Consumer Discretionary sector, Super Group (SGHC - Free Report) Limited (SGHC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +41.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Super Group (SGHC - Free Report) Limited's revenues are expected to be $603 million, up 16.6% from the year-ago quarter.
The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Alto Ingredients (ALTO - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Alto Ingredients is one of 243 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALTO's full-year earnings has moved 237.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ALTO has returned 54.9% so far this year. Meanwhile, the Consumer Discretionary sector has returned an average of -8% on a year-to-date basis. This shows that Alto Ingredients is outperforming its peers so far this year.
Another stock in the Consumer Discretionary sector, Hugo Boss (BOSSY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 9.1%.
Over the past three months, Hugo Boss' consensus EPS estimate for the current year has increased 4.8%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Alto Ingredients belongs to the Consumer Products - Discretionary industry, a group that includes 25 individual companies and currently sits at #104 in the Zacks Industry Rank. On average, stocks in this group have lost 1.1% this year, meaning that ALTO is performing better in terms of year-to-date returns.
In contrast, Hugo Boss falls under the Textile - Apparel industry. Currently, this industry has 22 stocks and is ranked #71. Since the beginning of the year, the industry has moved -8.4%.
Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Hugo Boss. These stocks will be looking to continue their solid performance.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 11:
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty alcohols and essential ingredients company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.
Alto’s shares gained 69% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score of A.
Sterling Infrastructure, Inc. (STRL - Free Report) : This e-infrastructure, transportation, and building solutions company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.8% over the last 60 days.
Sterling’s shares gained 95.8% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score of A.
Lattice Semiconductor Corporation (LSCC - Free Report) : This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days.
Lattice’s shares gained 27.5% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
Alto Ingredients (ALTO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Alto Ingredients is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Alto Ingredients imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Alto IngredientsThis ethanol producer is expected to earn $0.54 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Alto Ingredients. Over the past three months, the Zacks Consensus Estimate for the company has increased 237.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Alto Ingredients to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 15:
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty alcohols and essential ingredients company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.
Alto’s shares gained 73.9% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score of A.
Lattice Semiconductor Corporation (LSCC - Free Report) : This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days.
Lattice’s shares gained 27.9% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score of A.
inTEST Corporation (INTT - Free Report) : This company that provides test and process solutions for use in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 104.6% over the last 60 days.
inTEST’s shares gained 80% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
May 18, 2026 08:30 ET | Source: Alto Ingredients, Inc.
PEKIN, Ill., May 18, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a producer and distributor of renewable fuels, essential ingredients and specialty alcohols, announced that management is scheduled to participate at the Craig-Hallum 23rd Annual Institutional Investor Conference on Thursday, May 28, 2026, in Minneapolis, MN.
President & CEO Bryon McGregor and CFO Rob Olander will conduct one-on-one meetings on May 28th. Interested investors should contact their Craig-Hallum representative or Jody Burfening of Alliance Advisors Investor Relations at [email protected]
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755 [email protected]
For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Alto Ingredients (ALTO - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Alto Ingredients is a member of the Consumer Discretionary sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALTO's full-year earnings has moved 237.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ALTO has returned 81.3% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 8.4% on average. This shows that Alto Ingredients is outperforming its peers so far this year.
Hugo Boss (BOSSY - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.5%.
For Hugo Boss, the consensus EPS estimate for the current year has increased 4.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, a group that includes 25 individual stocks and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have lost about 0.3% so far this year, so ALTO is performing better this group in terms of year-to-date returns.
On the other hand, Hugo Boss belongs to the Textile - Apparel industry. This 22-stock industry is currently ranked #52. The industry has moved -7.2% year to date.
Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Hugo Boss. These stocks will be looking to continue their solid performance.
Key Takeaways ALTO essential ingredients return rose to 53.4% in Q1 2026 from 48.2% a year ago. ALTO sold 292 thousand tons of essential ingredients vs 310.8 thousand tons last year. Higher protein feed and corn oil pricing, plus a corn cost drop to $4.58 per bushel, helped ALTO margins. Alto Ingredients, Inc. (ALTO - Free Report) generates value from more than just alcohol production. Its business model is built around maximizing returns from every bushel of corn, with essential ingredients serving as an important contributor alongside its alcohol products. The first-quarter 2026 results highlighted how this part of the portfolio helped strengthen overall economics, even as essential ingredients volumes declined.
A key measure of performance was the company's essential ingredients return, which reflects essential ingredients revenues as a percentage of total corn costs consumed. Consolidated return increased to 53.4% in the first quarter of 2026 from 48.2% in the year-ago period. Pekin Campus return improved to 54% from 48%, while Western production return rose to 49.9% from 49%.
The improvement came despite lower volumes. Alto sold 292 thousand tons of essential ingredients during the quarter compared with 310.8 thousand tons a year earlier. Pekin Campus volumes declined to 217.5 thousand tons from 237.9 thousand tons, while Western production volumes rose modestly to 74.5 thousand tons from 72.9 thousand tons.
The stronger returns were supported by improved economics from the corn stream. Higher pricing for co-product protein feed and fuel products, particularly corn oil used in renewable biofuels, contributed additional revenues during the quarter. Lower corn costs also provided support, with consolidated corn cost per bushel falling to $4.58 from $4.81 in the prior-year period.
The quarter showed that Alto's essential ingredients business is more than a by-product operation. Even with lower sales volumes, the segment generated stronger returns from corn processing and provided meaningful margin support, underscoring its role as an important component of the company's diversified operating model.
MGPI & GPRE Leverage Higher-Value Ingredient StreamsMGP Ingredients, Inc. (MGPI - Free Report) has long emphasized value-added ingredients as a key part of its business model. Beyond its branded spirits operations, MGP Ingredients generates revenues from specialty wheat proteins and starches that serve food and industrial markets. By focusing on higher-margin ingredient products, MGPI has reduced its reliance on commodity-driven earnings streams, making ingredients an important contributor to overall business performance.
Similarly, Green Plains Inc. (GPRE - Free Report) has been expanding its focus beyond ethanol through investments in high-protein feed ingredients and renewable corn oil. Green Plains continues to commercialize its Ultra-High Protein platform, which is designed to extract greater value from every bushel processed. As a result, GPRE has increasingly positioned ingredients and co-products as an important complement to its fuel business.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 510.8% over the past year against the industry’s decline of 3.8%.
ALTO Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.44, lower than the industry’s average of 2.84.
ALTO’s Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year earnings per share implies a year-over-year surge of 671.4%, while the consensus mark for the next fiscal year’s EPS suggests growth of 53.7%.
Alto Ingredients currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 3:
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty alcohols and essential ingredients company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.
Alto Ingredients has a price-to-earnings ratio (P/E) of 10.57, compared with 10.70 for the industry. The company possesses a Value Score of B.
Banco Macro S.A. (BMA - Free Report) : This company that provides various banking products and services to retail and corporate customers in Argentina carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.
Banco Macro has a price-to-earnings ratio (P/E) of 17.63, compared with 23.81 for the S&P 500. The company possesses a Value Score of B.
Genesco Inc. (GCO - Free Report) : This retailer of apparel and footwear carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.9% over the last 60 days.
Genesco has a price-to-earnings ratio (P/E) of 17.01, compared with 23.81 for the S&P 500. The company possesses a Value Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Alto Ingredients (ALTO) produces specialty alcohols for industry and is trading at a significant discount to sector medians, with forward EV/sales at 0.54x. ALTO's Q1 earnings beat expectations, with adjusted EBITDA swinging to $4.7M from a $4.4M loss, and gross profit rising to $9.2M from -$1.8M. Management is executing a turnaround strategy, improving essential ingredient returns, and planning a debottlenecking project to boost capacity by 8%.
When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Alto Ingredients (ALTO - Free Report) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ALTO is quite a good fit in this regard, gaining 16.2% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 21.6% over the past four weeks ensures that the trend is still in place for the stock of this ethanol producer.
Moreover, ALTO is currently trading at 90.6% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ALTO may not reverse anytime soon.
In addition to ALTO, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 8:
Digital Turbine, Inc. (APPS - Free Report) : This mobile marketing platform company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.1% over the last 60 days.
Digital Turbine's shares gained 125.8% over the last three months compared with the S&P 500’s decline of 9.0%. The company possesses a Momentum Score of A.
Caleres, Inc. (CAL - Free Report) : This footwear company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.
Caleres’ shares gained 22.6% over the last three months compared with the S&P 500’s decline of 9.0%. The company possesses a Momentum Score of A.
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty chemicals company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.5% over the last 60 days.
Alto Ingredients’ shares gained 24.2% over the last three months compared with the S&P 500’s decline of 9.0%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Key Takeaways Alto Ingredients achieved adjusted EBITDA and net income profitability in Q1 2026.Strong renewable fuel exports added $6.7M in revenues through higher volumes and premiums.ALTO offset a 4% volume decline as export demand supported margins and inventories. Alto Ingredients, Inc. (ALTO - Free Report) reported a strong financial turnaround in the first quarter of 2026, driven in large part by the strength of its export business. Despite operating in a seasonally weak period that typically brings higher ethanol inventories and softer demand, the company delivered profitability on both an adjusted EBITDA and net income basis.
A key factor behind this improvement was a more favorable product mix. ALTO benefited from stronger renewable fuel export sales, which generated an incremental $6.7 million in revenues during the first quarter. The gain reflected both higher export volumes and significantly stronger pricing premiums compared with domestic renewable fuel sales.
The export contribution was particularly important as the company faced several operational headwinds. Weather-related disruptions to river logistics led to production curtailments at Alto Ingredients' Pekin campus, contributing to a 4% decline in overall volumes sold, or 3.7 million gallons. Nevertheless, higher-value export sales helped offset the volume shortfall and supported profitability.
Management also highlighted the broader role exports are playing in the ethanol market. During the first-quarter earnings call, executives noted that export demand has helped keep inventories balanced and supported industry margins. For ALTO, the first quarter demonstrated how access to premium international markets can enhance product realizations and provide a meaningful boost to earnings, even during operational and seasonal challenges.
GPRE & MGPI: Different Drivers of ProfitabilityGreen Plains Inc. (GPRE - Free Report) delivered a strong first-quarter 2026 turnaround, largely supported by robust market dynamics. Green Plains benefited significantly from a steady, sustainable pull in U.S. ethanol export demand, which helped balance inventories and provide critical margin support. Management highlighted that overseas blending mandates and international supply deficits continue to fuel this momentum, with Green Plains underscoring the importance of international demand in supporting margins during the quarter.
MGP Ingredients, Inc. (MGPI - Free Report) emphasized inventory optimization, cost management and balance-sheet stewardship during the first quarter of 2026. MGP Ingredients also added more than 20 new customers, reflecting continued demand for its differentiated spirits offerings. By focusing on premium products and customer acquisition, MGP Ingredients strengthened profitability despite ongoing challenges across the broader spirits industry.
ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 427.1% over the past year against the industry’s decline of 2.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.42, lower than the industry’s average of 2.83.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year earnings per share (EPS) implies a year-over-year surge of 671.4%, while the consensus mark for the next fiscal year’s EPS suggests growth of 53.7%.
Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Broker-screened list highlights ALTO, ARW, GPRE, AAL and ACDVF amid renewed market uncertainty.Screen targets net analyst upgrades and strong near-term earnings estimate revisions from the past four weeks.Low price-to-sales ratios plus price, volume and market-cap filters narrow the field to these five names. The tenuous ceasefire between Iran and the United States has revived uncertainty in financial markets. Crude oil prices have experienced significant swings in response to developments surrounding the Strait of Hormuz, a vital global shipping corridor. Oil has continued to trade at elevated levels, moving within the $90–$95 per barrel range amid concerns about rising inflationary pressures.
Robust conditions in the U.S. labor market, supported by recent economic data and optimism surrounding artificial intelligence, have provided a strong boost to investor sentiment. However, the resulting market turbulence has made it increasingly challenging for individual investors to build a consistently successful stock portfolio. Selecting the wrong stocks can affect returns and undermine the primary goal of investing hard-earned money in an inherently volatile market.
How should investors proceed in such an environment? One approach is to rely on broker recommendations and keep broker-favored stocks such as Alto Ingredients (ALTO - Free Report) , Arrow Electronics (ARW - Free Report) , Green Plains (GPRE - Free Report) , American Airlines (AAL - Free Report) and Air Canada (ACDVF - Free Report) on their watchlists.
To identify promising opportunities, we have developed a screening strategy that focuses on stocks benefiting from improved analyst ratings and upward earnings estimate revisions over the past four weeks. In addition, the price-to-sales (P/S) ratio has been incorporated as a complementary valuation measure, given its effectiveness alongside broker insights. By emphasizing a company’s revenue performance, the P/S ratio helps create a more balanced and comprehensive investment approach.
Screening Parameters # (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Alto is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients in the United States. It is poised to gain from its compelling portfolio, its focus on customer relationships, and its leveraging of technologies. The company is undergoing a strategic transformation, shifting away from its legacy role as a traditional fuel ethanol producer toward a more diversified model centered on specialty alcohols and essential ingredients.
Alto beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. The average beat is 361.5%. The company, which is targeting higher-value end markets that offer more stable demand and improved margins, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Arrow Electronics benefits from continued operational momentum across Global Components and ECS, with first-quarter 2026 consolidated sales of $9.47 billion, up 39% year over year and above guidance.
ARW’s diverse customer portfolio of thousands of leading manufacturers and service providers offers revenue stability and reduces concentration risk. Strong cash flow generation from its asset-light model supports share buybacks and strategic investments. For the second quarter of 2026, Arrow expects consolidated sales of $9.15 billion to $9.75 billion.
Arrow Electronics has an expected revenue and earnings growth rate of 20.1% and 73.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 44.6% over the last 60 days. The company currently sports a Zacks Rank #1.
Green Plains has been expanding its focus beyond ethanol through investments in high-protein feed ingredients and renewable corn oil. Green Plains continues to commercialize its Ultra-High Protein platform, which is designed to extract greater value from every bushel processed. As a result, GPRE has increasingly positioned ingredients and co-products as an important complement to its fuel business.
Green Plains’ earnings surpassed estimates in three of the last four quarters and missed the mark once. The average beat was 16%. Green Plains currently flaunts a Zacks Rank #1.
American Airlines is based in Fort Worth, TX. Strong air travel demand, particularly on the leisure front, despite high fuel costs, is aiding AAL. Efforts to broaden its network are also praiseworthy.
The company’s high debt levels are worrisome. The carrier’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other quarter). The average beat is 2.6%. American Airlines currently carries a Zacks Rank #3 (Hold).
Air Canada has been benefiting from the impressive scenario in air travel demand. High fuel costs represent a headwind. The Zacks Consensus Estimate for 2026 sales has increased 13.1% on a year-over-year basis.
ACDVF surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters, missing the mark on the other occasions. The average beat was 51.4%. ACDVF currently carries a Zacks Rank #3.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty chemicals company has seen the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.
FGI Industries Ltd. (FGI - Free Report) : This bath and kitchen products company has seen the Zacks Consensus Estimate for its current year earnings increasing 32.1% over the last 60 days.
Chegg, Inc. (CHGG - Free Report) : This edtech company has seen the Zacks Consensus Estimate for its current year earnings increasing 27.3% over the last 60 days.
AAON, Inc. (AAON - Free Report) : This heating and cooling equipment company has seen the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.
Dave Inc. (DAVE - Free Report) : This financial services company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways FLXS, ARKO, SNEX and ALTO show strong net margins and upward EPS revisions for the current fiscal.All four stocks have a Zacks Rank of 1 or 2 and a VGM Score of A or B, indicating solid upside potential.Each company has an impressive track record of beating earnings estimates. The primary purpose of a business is to generate profits that can be reinvested in expansion or distributed to reward shareholders. The net profit margin is an effective tool for measuring the profits a business reaps.
A higher net margin underlines a company’s efficiency in translating sales into actual profits. This metric offers insight into how well a company is run and the headwinds weighing on it. Flexsteel Industries, Inc. (FLXS - Free Report) , ARKO Corporation (ARKO - Free Report) , StoneX Group Inc. (SNEX - Free Report) and Alto Ingredients Inc. (ALTO - Free Report) boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100
In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures.
A higher net profit is essential for rewarding stakeholders. Strength in the metric not only attracts investors but also draws well-skilled employees who eventually enhance the value of a business.
A higher net profit margin compared with its peers provides a company with a competitive edge.
Pros and ConsNet profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.
However, net profit margin, as an investment criterion, has its share of pitfalls. The metric varies widely from industry to industry. While net income is a key metric for investment measurement in traditional industries, it is not that important for technology companies.
In addition, the difference in accounting treatment of various items — especially non-cash expenses like depreciation and stock-based compensation — makes comparison a daunting task.
Furthermore, for companies preferring to grow with debt instead of equity funding, higher interest expenses usually weigh on net profit. In such cases, the measure is rendered ineffective while analyzing a company’s performance.
The Winning StrategyA healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.
Apart from these, we have added a few criteria to ensure maximum returns from this strategy.
Screening ParametersNet Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability.
Percentage Change in EPS F(0)/(F-1) greater than equal to 0: It indicates earnings growth.
Average Broker Rating (1-5) equal to 1: A rating of #1 indicates brokers’ extreme bullishness on the stock.
Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Let us discuss the abovementioned four stocks out of the 12 stocks that qualified the screening.
Flexsteel Industries is a manufacturer, importer and marketer of residential furniture products, including upholstered seating, recliners, sofas and home furnishings sold through a network of furniture retailers and e-commerce channels. The stock currently sports a Zacks Rank of 1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flexsteel Industries’ fiscal 2026 earnings has been revised upward by 13 cents to $4.78 per share over the past 30 days. FLXS beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 59%.
ARKO is a Fortune 500 company and one of the largest operators of convenience stores and wholesalers of fuel in the United States. The stock sports a Zacks Rank #1 and has a VGM Score of A.
The Zacks Consensus Estimate for ARKO’s 2026 earnings has been revised upward by 3 cents to 29 cents per share over the past 30 days. ARKO surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed it once, the average surprise being 43.23%.
StoneX Group is a global financial services company that provides trading, risk management, market access, clearing and payment solutions across asset classes, including commodities, securities, foreign exchange and derivatives. The stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for StoneX Group’s fiscal 2026 earnings has moved northward by 13.9% to $6.00 per share over the past 60 days. SNEX beat the Zacks Consensus Estimate twice in the trailing four quarters and missed it on two occasions, with an average surprise of 9.47%.
Alto Ingredients is a producer and distributor of specialty alcohols, renewable fuels and essential ingredients derived from corn, serving markets such as food and beverage, pharmaceuticals, personal care, industrial products and clean energy. The stock carries a Zacks Rank of 2 and has a VGM Score of A.
The Zacks Consensus Estimate for Alto Ingredients’ 2026 earnings has been revised upward by 184.2% to 54 cents per share over the past 60 days. ALTO beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 361.46%.
