Back to top

Image: Bigstock

Bloom Energy (BE) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

Bloom Energy (BE - Free Report) closed at $10.56 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the developer of fuel cell systems had lost 10.16% in the past month. In that same time, the Oils-Energy sector lost 2.47%, while the S&P 500 gained 2.06%.

Market participants will be closely following the financial results of Bloom Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 40% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $387.13 million, showing a 3.28% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.14 per share and revenue of $1.47 billion, indicating changes of +240% and +10.26%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Bloom Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.89% lower. Bloom Energy is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Bloom Energy is presently trading at a Forward P/E ratio of 74.31. This expresses a premium compared to the average Forward P/E of 21.58 of its industry.

It is also worth noting that BE currently has a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Alternative Energy - Other industry had an average PEG ratio of 2.97.

The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bloom Energy Corporation (BE) - free report >>

Published in