Why Ameresco Inc.'s Shares Plunged in August

What: Shares of energy services company Ameresco Inc. have fallen 16% since the start of August, continuing a rough summer for the company. But this may be an opportunity to buy, rather than bail on, this stock.

So what: A lot of energy stocks have been thrown out with the bathwater, so to speak, as oil prices have fallen over the past year. In the past month, energy-related stocks like Ameresco are down on fear that low oil prices, and low energy prices in general, will reduce the need for their services. That may be true in some respect, but in the long term, companies are looking for ways to be more energy-independent and more in control of energy usage, so I don't think the investment thesis has changed all that much.

Now what: Even recently reported earnings from the second quarter showed a 7% increase in revenue and a 66% jump in new awards. For the full year, management also reaffirmed its guidance of $610 million to $640 million in revenue and earnings of $0.16 to $0.24 per share.

I think Ameresco is still in a strong position to provide needed energy services around sustainability and renewable energy that businesses need. The market may be down on the stock now, but energy prices won't stay this low forever, and when they turn around, so should the stock.

The article Why Ameresco Inc.'s Shares Plunged in August originally appeared on Fool.com.

Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Ameresco. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.