This Company Turns Slaughterhouse Scraps Into Jet Fuel
Most people held their noses and looked away... But one man didn't. He was convinced that the reeking waste was worth a fortune.
This Company Turns Slaughterhouse Scraps Into Jet Fuel
By John Evelius, junior analyst, Chaikin Analytics
Most people held their noses and looked away...
But one man didn't. He was convinced that the reeking waste was worth a fortune.
In the 1880s, Chicago's Union Stock Yards were the beating heart of the American meatpacking industry.
Tens of thousands of hogs and cattle came through every day. Most of them were butchered and then shipped to other cities.
But what was left behind became a nasty problem. The unsellable parts – bones, hooves, fat, and blood – piled up and rotted.
And in the summer heat, the stench of that rotting mass hung over the entire South Side of the city.
Gustavus Swift, a local butcher, was determined to use "everything but the squeal." Where everyone else smelled rot, he smelled opportunity...
That is, if he was willing to get his hands dirty.
Sometimes called the "original recycling," there are several processes used to make those inedible animal parts useful. No matter the process, the industry is called "rendering."
Now, Swift didn't know much about the rendering business. So in 1882, he joined forces with a family that already knew the trade – the Darlings.
Together, they built a company around unglamorous work. Collecting the guts, bones, and grease the world threw out and transforming the lot into useful products like fuel, candles, gelatin, and animal feed.
For 140 years, that was the whole business. Then it found a second act...
The 60-year Wall Street legend who called the COVID-19 crash, the 2022 bear market, and the March 2025 sell-off is back. Now, only 46 companies control half of all U.S. stock market wealth. That number was 89 just a decade ago. It keeps shrinking. Marc says the next generation of winners is emerging right now. And his new AI "Time Machine" just identified the next potential winner. Get his free pick here now.
Wall Street legend Whitney Tilson just shared an opportunity he has waited 27 years to bring you. Not only that, he called "BUY" on one group of stocks (which almost certainly isn't on your radar), predicting as much as 1,000% gains to come. His calls in 2000, 2008, and 2020 were remarkably accurate, so do NOT miss his latest prediction. Click here to learn more (includes two free recommendations).
The Ruling That Changed the Entire Game
Today, this company is called Darling Ingredients (DAR). More than 140 years after its birth in Chicago's stockyards, it's still a top name in turning waste into value.
And not just from stockyards...
You see, grease from fast-food fryers can be turned into clean-burning diesel and jet fuel. The waste that used to rot behind restaurants now fuels trucks on highways and planes in the sky.
Teaming up with Valero Energy (VLO), Darling is now a top producer of renewable fuel in North America. These companies make what they call Diamond Green Diesel.
In an age of eco-conscious consumers, this seems like a product that would have steady support. But renewable fuel is a cyclical business. It doesn't just depend on oil prices alone. Rather, it depends on the government, tax breaks, and federal rules that dictate how much fuel is used.
When these factors work in a producer's favor, the money rolls in. When they don't, the whole industry grinds to a halt.
That's exactly what happened in early 2025...
A key $1-per-gallon federal tax break on biodiesel expired. And its replacement got stuck in red tape. So the market became flooded with gobs of fuel, which gutted producer margins.
Darling's annual profits fell from roughly $648 million in 2023 to around $63 million in 2025.
The market hadn't waited for Darling's earnings to drop. In the months before the tax break expired, investors moved out of the stock. And its share price plummeted.
But the tide seems to be turning...
You see, refiners don't buy renewable diesel by choice. Federal rules force them to blend it into the nation's fuel supply. And earlier this year, the Environmental Protection Agency ("EPA") cranked those requirements way up.
By 2027, the Renewable Fuel Standard volumes will need to be roughly 58% higher than they were in 2020. That's a massive win for companies making biofuel...
When the new rules arrived, demand for Darling Ingredients' greasy feedstocks shot up. As a result, margins bounced back.
We can see it in Darling's most recent earnings...
Revenue climbed just over 13% year over year to around $1.7 billion. And earnings per share hit $2.49, blowing past Wall Street's estimate by more than a dollar.
This business lives and dies by government rules and regulations. And a rare stretch of clear skies lies ahead.
And the Power Gauge agrees. Right now, our system gives Darling a "bullish" rating.
This means that the Power Gauge sees strength "under the hood."
In fact, Darling currently maintains positive Chaikin Money Flow. This signals that big institutions have been scooping up shares of this stock.
But the Power Gauge is also flashing caution...
Darling clears just three of the six boxes on its buy checklist. And right now, the stock is drifting into overbought territory, a sign it has run hot and may be due for a pullback.
Put it together, and this is a strong company caught at an awkward moment. For now, Darling Ingredients is a stock to keep an eye on – not rush into.
Good investing,
John Evelius
Marc Chaikin is speaking at our corporate affiliate Stansberry Research's upcoming 24th annual conference in Las Vegas. And he would love for all his readers to see his presentation...
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+1.69%
Communication
+0.51%
Information Technology
+0.21%
Real Estate
-1.16%
Staples
-1.42%
Financial
-1.46%
Utilities
-1.60%
Industrials
-1.65%
Discretionary
-1.70%
Materials
-2.84%
Health Care
-3.55%
* * * *
Industry Focus
Aerospace & Defense
0
25
20
Over the past 6 months, the Aerospace & Defense subsector (XAR) has underperformed the S&P 500 by 24.36%. Its Power Bar ratio which measures future potential is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #21 of 21 subsectors and has moved up 1 slots over the past week.
Indicative Stocks
ACHR
Archer Aviation Inc.
AXON
Axon Enterprise, Inc.
FLY
Firefly Aerospace Inc.
* * * *
Top Movers
Gainers
HPE
+12.44%
DELL
+11.98%
NTAP
+8.54%
ON
+8.51%
HPQ
+8.40%
Losers
ALB
-3.76%
STX
-3.73%
SNDK
-3.50%
WDC
-2.98%
EW
-2.77%
* * * *
Earnings report
Earnings Surprises
KR The Kroger Co.
Q2
$1.09
Beat by $0.04
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at penunggangbadai.moneyblog@blogger.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
0 Response to "This Company Turns Slaughterhouse Scraps Into Jet Fuel"
Post a Comment