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Bloom Energy (BE) Laps the Stock Market: Here's Why

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Bloom Energy (BE - Free Report) closed the most recent trading day at $70.32, moving +2.37% from the previous trading session. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.44%.

Shares of the developer of fuel cell systems have appreciated by 25.35% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.38%, and the S&P 500's gain of 2.72%.

The investment community will be closely monitoring the performance of Bloom Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 800% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $411.09 million, showing a 24.42% escalation compared to the year-ago quarter.

BE's full-year Zacks Consensus Estimates are calling for earnings of $0.48 per share and revenue of $1.77 billion. These results would represent year-over-year changes of +71.43% and +20.37%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Bloom Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 10% rise in the Zacks Consensus EPS estimate. Bloom Energy currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Bloom Energy is currently trading at a Forward P/E ratio of 143.6. This signifies a premium in comparison to the average Forward P/E of 20.43 for its industry.

It's also important to note that BE currently trades at a PEG ratio of 5.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Alternative Energy - Other industry stood at 2.41 at the close of the market yesterday.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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