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Bloom Energy (BE) Surges 7.1%: Is This an Indication of Further Gains?

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Bloom Energy (BE - Free Report) shares soared 7.1% in the last trading session to close at $24.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.6% loss over the past four weeks.

Bloom Energy is benefiting from its decision to supply its solid oxide fuel cells in the Northeast to small businesses and household, which are generally sold to big companies. The company will deploy 40 Megawatts (MW) of solid oxide fuel cells, which will lower greenhouse gas emissions and air pollutants, reduce costs, and enhance energy reliability. The Bloom Energy servers will allow the customers to have access to cheaper, reliable and cleaner power. The company has already deployed 7.5 MW on Staten Island, New York and the balance 32.5 MW are in various stages of development.

Price and Consensus

Price Consensus Chart for BE

This developer of fuel cell systems is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +76.5%. Revenues are expected to be $203.27 million, up 29.7% 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 been revised 5.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 >>>>


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