Bloom Energy Stock Is Falling, But Don’t Buy The Dip Yet

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bloom energy stock (NYSE:BE), a company that sells solid oxide fuel cell generators, declined nearly 12% over the past week, which is significantly lower than the S&P 500, which is down about 2% over the same period. The stock is also down about 24% over the past month. Hydrogen stocks have underperformed recently, in large part because of the stalling of talks over President Biden’s Build Back Better plan, which proposed providing tax credits for hydrogen production. The company’s third quarter results published in November were also below market estimates. In addition, high-growth, high multiple stocks, in general, have also outpaced the prospect of rising interest rates by 2022.

Given that BE stock is down 24% over the past month, will it continue its downward trend, or is a rise imminent? According to historical performance, there is BE stock more likely to decline next month, out of 139 cases BE stock saw a twenty one day decline of 24% or more in the last three years, 49 of them BE stock is rising as a result subsequent one month period (twenty one trading days). This historical pattern represents 49 out of 139, or BE stock only 37% likely to rise in the coming month, which means that BE stock may not be a good bet in the near term. View our analysis Bloom Energy stock likely to rise for more information.

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While BE stock can see further downside, it is helpful to see how its peers stack up. check out Bloom Energy stock comparison with peers Take a look at the metrics to see how BE stock compares against peers. You can find more useful comparisons at peer comparison,

Calculation of ‘Event Probability’ and ‘Chance of Rise’ using data of last three years

  • After rising -12% or more over a five-day period, the stock rose on a 48% chance over the next five days.
  • After rising -12% or more over a ten-day period, the stock rose on 46% of the occasions over the next ten days
  • After rising -24% or more over a twenty-one day period, the stock rose on 34% of the occasions over the next twenty-one days.

This pattern suggests that BE stock has little upside potential in the near term.

Below you’ll find our previous coverage of Bloom Energy
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Stock where you can track our view over time.

[11/22/2021] This hydrogen stock is a better bet than FuelCell Energy

The hydrogen and fuel cell space is in focus again, with a $1.2 trillion US infrastructure bill recently signed into law and the Build Back Better Act being passed by the House. Back in January, we noted that bloom energy, a company that sells solid oxide fuel cell generators, to drive the hydrogen economy. was a better pick than fuel cell energy, a company focused on designing large fuel-cell power plants. (See our update below) Now, eleven months later, while both stocks have underperformed the market, Bloom has delivered a return of about 10%, while FuelSell remains down about 7.5% year-on-year. So is there more upside to this trade? Yes. We feel that Bloom Energy is undervalued in comparison to FuelCell. our dashboard bloom energy vs fuelcell energyWhich stock is the better bet? There is more detail on this. The excerpts of the analysis are summarized below.

Bloom is growing more rapidly and steadily than fuelcell. Over the past twelve months, Bloom’s revenue increased 15.9%, compared with 11.9% growth for FuelCell. Looking longer, Bloom’s sales grew about 29.5% each year over the past three years, driven by increased installations of its generators. FuelCell, on the other hand, saw sales decline an average of about 9.5% annually, as its product revenues saw a sharp decline. Looking ahead, FuelCell is likely to see a slight recovery, with sales expected to grow by around 55% in 2022 per consensus estimates, compared to Bloom, which could see sales growth of around 27% over the same period. Is.

On the profitability side, though both companies are making losses, Bloom is cutting its losses. Bloom’s operating margin increased from about -46% to about -12.4% between 2017 and the past 12 months. On the other hand, FuelCell’s margin has come down from -17% to around -117% in the same period.

Bloom Energy trades at approximately 5x trailing revenue, while FuelCell Energy trades at approximately 55x trailing revenue. That doesn’t make sense, given that both companies operate in the same industry with Bloom’s recent revenue growth and the margins ahead of FuelCell. With that in mind, we think Bloom Energy is currently the better pick of the two stocks.

[1/6/2021] Choose Bloom Energy over FuelCell Energy to play Fuel Cell Space?

Shares of hydrogen and fuel cell makers did well last year, driven by rising interest in clean energy, the recent expansion of tax credits for fuel cell projects and the election of Democrat Joe Biden to the US presidency — who proposed spending Up to $2 trillion to fight climate change. bloom energy And fuel cell energy (NASDAQ:FCEL), two well-known names in the fuel cell market, saw their share prices rise 3.5x and 5x, respectively, over 2020. Let’s take a closer look at both companies to find out which one might be the better pick for investors. View our analysis Bloom Energy vs. FuelCell Energy: BE stock looks undervalued compared to FCEL stock For more on how the two companies’ financial and valuation metrics compare.

bloom energy Bloom Energy sells a solid oxide fuel cell generator called Server
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Which generate electricity from natural gas or biogas through electrochemical process without combustion. These servers essentially replace diesel generators in commercial and industrial uses and help reduce carbon dioxide pollution by more than two-thirds. Whereas fuel cell energy (NASDAQ: FCEL) also designs and manufactures fuel cells, the company’s focus has been on large fuel-cell power plants. The company’s systems are more bulky and less flexible than those of Bloom.

Bloom’s revenue has grown from about $366 million in 2017 to about $758 million over the past 12 months, driven by increased installation of its servers. For example, with power outages and wildfires in California in recent years, companies began working with Bloom’s products. FuelCell, on the other hand, has seen its revenue decline from approximately $96 million to $65 million over the same period, as its product revenue declined, although it retains revenue from some legacy power generation contracts as well as service and licensing revenue. continues to earn. Bloom has also cut its losses, with operating margin rising from about -46% to about -17.5% between 2017 and the past 12 months. Fuelcell’s margin, on the other hand, has come down from -47% to around -85% in the same period.

Now let’s look at the relative valuations of the two companies. FuelCell Energy trades at a much higher price with a sales multiplier of 40x compared to about 5x for Bloom. That doesn’t make sense, given that both companies working in the same industry with Bloom are clearly dealing with superior technology. In addition, Bloom has more than doubled its revenue since 2017, while FuelCell has seen sales decline by nearly a third over the same period. With that in mind, we think Bloom Energy is currently the better pick of the two stocks.

[12/11/2020] Stocks to play hydrogen economy

Interest in clean energy stocks has soared this year, driven by lower interest rates, improving economics, and the election of Democrat Joe Biden – who has proposed spending more than $2 trillion on fighting climate change – for the US presidency. . While solar and electric vehicle stocks have been the most high-profile winners, another topic that has attracted investor interest is the concept of a “hydrogen economy,” or the use of hydrogen as a fuel for transportation and other energy needs, from fossil fuels. instead of fuel

Hydrogen burns cleaner than petroleum-based fuels and can be produced using only water and energy, or from hydrogen-containing gases such as methane. Hydrogen is also seen as a means of storing additional renewable electricity – as electricity can be used to drive the process of electrolysis, which converts water into hydrogen. our subject hydrogen economy stock This includes stocks of US-based companies that sell fuel cells, renewable energy equipment, and supply hydrogen gas. Below is a little more about the companies in our topic and how they fit into the broader picture of the hydrogen economy.

bloom energy Bloom Energy sells solid oxide fuel cell generators called servers that use natural gas or biogas as fuel through an electrochemical process without combustion. The company also develops hydrogen fuel cells – which use only hydrogen gas as fuel. The stock is up 245% year-over-year.

fuel cell energy (NASDAQ: FCEL) is a company that designs and manufactures carbonate and solid oxide fuel cells that run on hydrogen-rich fuels such as natural gas and biogas. The company also operates more than 50 fuel cell power plants around the world. The stock is up 229% year-over-year.

Air Products and Chemicals
APD
(NYSE:APD), a company that sells gases and chemicals for industrial use, is one of the world’s largest producers of hydrogen. Earlier this year, the company outlined plans to build a large hydrogen plant in Saudi Arabia powered by 4 gigawatts of renewable electricity. The stock is up 14% year-over-year.

first solar
FSLR
is the largest US-based solar panel manufacturer. Solar players may also stand to benefit from the hydrogen economy as hydrogen can be…

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