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FuelCell Energy (FCEL) Gains But Lags Market: What You Should Know

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FuelCell Energy (FCEL - Free Report) closed the most recent trading day at $4.22, moving +0.24% from the previous trading session. This change lagged the S&P 500's 2.48% gain on the day. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the fuel cell power plant maker had lost 28.28% over the past month, lagging the Oils-Energy sector's loss of 5.77% and the S&P 500's loss of 7.81% in that time.

FuelCell Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect FuelCell Energy to post earnings of -$0.06 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.38 million, up 139.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.27 per share and revenue of $139.06 million. These totals would mark changes of +12.9% and +99.85%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FuelCell Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FuelCell Energy is currently a Zacks Rank #3 (Hold).

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

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

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