Bloom Energy (BE) Soars 7.6%: Is Further Upside Left in the Stock?
Bloom Energy (BE) shares rallied 7.6% in the last trading session to close at $10.80. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.4% gain over the past four weeks.
The surge can be attributed to BE’s commitment to providing electricity from renewable sources. The company offers a unique oxide technology that generates electricity by converting fuels such as natural gas and hydrogen, using an electrochemical process without combustion. Electricity consumption in the United States continues to rise, indicating stable and consistent demand for the company’s services. Governments and stakeholders are increasingly focusing on shifting towards cleaner energy sources, given their lower environmental impact and BE’s unique offering to provide low carbon energy solutions have been significant growth drivers for the company.
This developer of fuel cell systems is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +54.6%. Revenues are expected to be $254.69 million, down 7.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Bloom Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Bloom Energy is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Excelerate Energy (EE), finished the last trading session 2.4% lower at $15.57. EE has returned 11.9% over the past month.
Excelerate Energy's consensus EPS estimate for the upcoming report has changed +2.7% over the past month to $0.20. Compared to the company's year-ago EPS, this represents a change of -41.2%. Excelerate Energy currently boasts a Zacks Rank of #2 (Buy).
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