1 Question to Ask Yourself Before Buying Renewable Energy Group

Government restrictions on movement, aimed at protecting public health during the coronavirus pandemic, have significantly affected demand for transportation fuels. Global consumption of crude oil has fallen by roughly 30% from pre-pandemic levels. Combine that with an oil price war started by Saudi Arabia and dwindling storage options, and it's not too surprising global crude oil benchmarks have dipped below $20 per barrel. 

What might be more surprising is the relative resilience demonstrated by shares of Renewable Energy Group (NASDAQ: REGI). The biomass-based diesel producer has lost only 13% of its market value since the beginning of March, while some oil supermajors have lost over 25%. Investors might be relieved by a lack of volatility for the small-cap stock, but the company's first-quarter 2020 earnings report is a good reminder that the stock's resilience is fragile.

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