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BE Stock Outpaces Its Industry in the Past 3 Months: How to Play?

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Key Takeaways

  • BE stock rose 8.2% in 3 months, outpacing its industry, sector and the S&P 500 in that period.
  • Bloom Energy benefits from AI-driven clean power demand and scalable distributed energy solutions.
  • BE's ROIC of 5.22% and four-quarter earnings beats highlight efficiency and consistent performance.

Shares of Bloom Energy Corporation (BE - Free Report) have gained 8.2% in the past three months compared with the Zacks Alternative Energy - Other industry’s rise of 1.6%. The company has also outperformed the Zacks Oil & Energy sector’s return of 6.8% and the S&P 500’s growth of 3.5% in the same time frame. Another industry player, FuelCell Energy (FCEL - Free Report) , has gained 1.7% in the same time frame.

Price Performance (Three Months)

Zacks Investment Research
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Bloom Energy is benefiting from growing clean power demand from AI-driven data centers, as well as from customers adopting distributed energy solutions to bypass transmission and distribution constraints.

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

Major Catalysts Driving Bloom Energy’s Growth

Rising demand for a clean and reliable supply of 24/7 power, driven by AI-powered data centers, crypto-mining operations and the reshoring of U.S. manufacturing, is creating meaningful opportunities for Bloom Energy. Its Energy Server platform provides efficient, dependable and low-emission power solutions for both commercial customers and utilities.

As electricity demand outpaces supply, constraints in building new transmission and distribution infrastructure are becoming increasingly evident. Bloom Energy’s Energy Server addresses these challenges by operating alongside the grid through direct connection to a customer’s main power feed, while avoiding the efficiency losses common in centralized systems. Its modular architecture enables flexible deployment, with clustered systems delivering scalable capacity from hundreds of kilowatts to several hundred megawatts as per the requirements of customers.

Bloom Energy utilizes its proprietary solid oxide technology, which generates electricity through electrochemical fuel conversion, eliminating the need for traditional combustion and does not pollute the environment like fossil fuel-based power plants.
 
The company stands to benefit from government incentives that support clean energy generation. The clean power technology is further validated by partnerships with Oracle and Brookfield, which demonstrate the company’s ability to reliably deliver large-scale clean electricity to customers and position it for expanded future opportunities.

Bloom Energy’s Earnings Estimates Moving Up

The Zacks Consensus Estimate for Bloom Energy’s 2025 and 2026 earnings per share indicates year-over-year growth of 85.71% and 78.75%, respectively.

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The same for Talen Energy’s 2025 earnings per share implies a year-over-year decline of 40.73% and the same for 2026 indicates growth of 313.87%.

Bloom Energy’s Earnings Surprise

Bloom Energy’s earnings has surpassed estimates in three of the past four quarters and met once, resulting in an average surprise of 88.25%.

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Earnings of another company, Talen Energy Corporation (TLN - Free Report) , operating in the same industry, have surpassed estimates in two out of the past four quarters and missed in the other two, resulting in an average surprise of 56.19%.

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 peers in the industry.

Bloom Energy’s ROIC has outperformed the industry average in the trailing 12 months. ROIC of BE was 5.22% compared with the industry average of 1.06%.

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Image Source: Zacks Investment Research

Talen Energy’s current ROIC is 7.81%, which is better than its industry peers.

BE Is Trading at a Premium Valuation

Bloom Energy is currently trading at a premium valuation compared with the industry, with its forward 12-month price-to-sales (P/S) ratio of 8.02X. The industry is currently trading at 4.59X.

Zacks Investment Research
Image Source: Zacks Investment Research

FuelCell Energy is currently trading at P/S F12M of 1.44X, a discount to its industry.

Summing Up

Bloom Energy’s performance remains resilient, supported by rising demand for clean energy and its ability to deliver rapid power solutions. Demand for services is expected to increase as the company provides customized clean energy directly to customers, reducing reliance on traditional transmission and distribution infrastructure.

The rising earnings estimates, strong price performance and ROIC better than the industry make Bloom Energy attractive for investors.

However, considering the current premium valuation, we suggest investors maintain their position in this Zacks Rank #3 (Hold) stock.

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


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FuelCell Energy, Inc. (FCEL) - free report >>

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Bloom Energy Corporation (BE) - free report >>

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