Back to top

Image: Shutterstock

Bloom Energy Trades Above 50 and 200-Day SMA: How to Play the Stock?

Read MoreHide Full Article

Key Takeaways

  • Bloom Energy trades above its 50 and 200-day SMAs, signaling sustained bullish momentum.
  • BE's ROIC of 4.62% surpasses the industry average, showing superior capital efficiency.
  • Earnings estimates for 2025 and 2026 have risen sharply, reinforcing confidence in BE's growth.

Bloom Energy Corporation ((BE - Free Report) ) is trading above its 50-day and 200-day simple moving average (SMA), signaling a bullish trend. VST’s shares have gained significantly in the past 12 months, and the company is expected to come out with an earnings surprise when it reports third-quarter results.

Bloom Energy is capitalizing on the growing demand for clean power driven by artificial intelligence data centers and the increasing shift toward distributed energy solutions that help customers bypass transmission and distribution constraints.

BE 50 & 200 Day SMAs

Zacks Investment Research
Image Source: Zacks Investment Research

BE is trading above its 50 and 200-day simple moving averages (SMAs), signaling a bullish trend. The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important, as this is the first marker of an uptrend or downtrend of the stocks.

Shares of Bloom Energy have registered a whopping gain of 756.9% in the past year compared with the Zacks Alternative Energy - Other industry’s rally of 46.1%. The company has also outperformed the Zacks Oil & Energy sector’s return of 0.1% and the S&P 500’s rally of 18.3% in the same time frame.

Another company operating in the same industry, Vital Energy ((VTLE - Free Report) ), has gained 29.2% in the past months.

Price Performance (1 Year)

Zacks Investment Research
Image Source: Zacks Investment Research

Should investors add BE to their portfolio solely because of its ongoing price gains? Let’s take a closer look at the key factors that can help determine whether now is the right time to consider investing in the stock.

Factors Boosting Bloom Energy’s Performance

Bloom Energy’s Energy Server platform provides efficient, clean and dependable power solutions for both commercial and utility customers. Utilizing its proprietary solid oxide technology, the system generates electricity through the electrochemical conversion of fuels, eliminating the need for combustion. Bloom Energy can benefit from the rising demand for reliable and clean power, fueled by the rapid growth of AI-driven data centers, crypto-mining facilities and the re-shoring of manufacturing in the United States.

As electricity demand accelerates, utilities are struggling to keep up. A 2024 Lawrence Berkeley National Laboratory report revealed nearly 2,600 gigawatts (“GW”) of new capacity awaiting grid connection. While recent FERC reforms aim to ease interconnection delays, major transmission and distribution upgrades remain a key bottleneck. Experts estimate that meeting future demand could require a 60% boost in transmission capacity by 2030. In this context, Bloom Energy’s capability to deliver on-site distributed power generation offers a crucial solution, enabling faster and more reliable access to electricity for customers.

BE anticipates that more utilities will adopt its Energy Server systems, either to support their entire grid or to provide on-site power for specific customers. As product costs decline and utility rates rise, the company expects its energy solutions to become increasingly cost-competitive across a wider range of regions, industries and communities worldwide. In 2024, Bloom Energy secured several utility agreements and anticipates broader adoption ahead. Utilities are expected to deploy the Bloom Energy Server either as a front-of-the-meter solution serving entire rate bases or as on-site generation for individual customers.

BE is well-positioned in a favorable market environment, as customers increasingly seek low-carbon, reliable and 24/7 clean energy solutions with a path toward net zero. Its platform addresses these evolving needs by offering resilience against extreme weather, mitigating risks from aging grid infrastructure and retiring power plants, and easing the integration of renewables amid rapidly rising electricity demand.

BE Stock Returns Better Than Its Industry

The return on invested capital (“ROIC”) measures how well a company generates returns on the money it invests. ROIC is a key indicator of a company's profitability and operational efficiency. The ROIC of the company indicates that it is investing money more efficiently than its peers in the industry.

Bloom Energy’s ROIC has outperformed the industry average in the trailing 12 months. ROIC of BE was 4.62% compared with the industry average of 1.84%.

Zacks Investment Research
Image Source: Zacks Investment Research

Vital Energy’s ROIC of 9.85% is better than that of its industry.

BE’s Earnings Estimates Moving North

Courtesy of Bloom Energy’s stable performance, the earnings estimate for Bloom Energy is showing a positive movement. The Zacks Consensus Estimate for Bloom Energy’s earnings per share for 2025 and 2026 increased 78.57% and 49.2%, respectively, year over year.

Zacks Investment Research
Image Source: Zacks Investment Research

Another company operating in the same industry is Ormat Technologies ((ORA - Free Report) ). The Zacks Consensus Estimate for ORA’s 2025 earnings indicates a year-over-year decline of 2.27%, while 2026 suggests a year-over-year increase of 16.51%.

BE is Trading at a Premium Valuation

Bloom Energy is currently trading at a premium valuation compared to its industry, with its forward 12-month price-to-sales (P/S) ratio at 9.94X. The industry is currently trading at 5.09X.

Zacks Investment Research
Image Source: Zacks Investment Research

Ormat Technologies is also trading at 6.2X a premium valuation compared to its industry.

Wrapping Up

Bloom Energy continues to deliver stable performance, driven by growing demand for clean power and its capability to offer rapid, customer-specific energy solutions without relying on traditional transmission and distribution infrastructure.

With improving earnings estimates, strong share price momentum, and ROIC that exceeds the industry average, Bloom Energy presents an appealing opportunity for investors.

Given the positive attributes, we suggest investors can add a new position in this Zacks Rank #1 (Strong Buy) stock.

You can see the complete list of today’s Zacks #1 Rank stocks here.
 


See More Zacks Research for These Tickers


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


Ormat Technologies, Inc. (ORA) - free report >>

Bloom Energy Corporation (BE) - free report >>

Vital Energy, Inc. (VTLE) - free report >>

Published in