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Strength Seen in FuelCell Energy (FCEL): Can Its 7.5% Jump Turn into More Strength?

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FuelCell Energy (FCEL - Free Report) shares rallied 7.5% in the last trading session to close at $8.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.2% loss over the past four weeks.

FuelCell Energy ended sharply higher on the last trading day, driven by investor enthusiasm around its newly announced strategic collaboration with Sustainable Development Capital LLP. The agreement to explore up to 450 megawatts of fuel-cell deployments for data centers strengthened confidence in FCEL’s positioning as a behind-the-meter power provider for AI-driven demand. The partnership also signaled improved execution visibility by pairing FuelCell’s technology with SDCL’s financing and infrastructure expertise, lifting sentiment around future growth potential.

This fuel cell power plant maker is expected to post quarterly loss of $0.65 per share in its upcoming report, which represents a year-over-year change of +54.2%. Revenues are expected to be $41.19 million, up 116.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For FuelCell Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FCEL 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 >>>>

FuelCell Energy is part of the Zacks Alternative Energy - Other industry. Texas Pacific (TPL - Free Report) , another stock in the same industry, closed the last trading session 2.9% lower at $327.87. TPL has returned 11.5% in the past month.

Texas Pacific's consensus EPS estimate for the upcoming report has changed -3.9% over the past month to $1.73. Compared to the company's year-ago EPS, this represents a change of +1.2%. Texas Pacific currently boasts a Zacks Rank of #3 (Hold).


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