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FuelCell Energy (FCEL) Soars 6.9%: Is Further Upside Left in the Stock?

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FuelCell Energy (FCEL - Free Report) shares soared 6.9% in the last trading session to close at $7.3. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.2% loss over the past four weeks.

FuelCell Energy is well-positioned to benefit from growing demand in the AI data center market, where power shortages are becoming a key issue. By early 2026, more than 80% of its commercial pipeline was tied to data centers, supported by its ability to deliver efficient, scalable power solutions suited for high-performance computing. With proposals already in place and financing support available, the company expects project conversions in the coming quarters, which could drive backlog growth and support long-term revenue expansion.

Moreover, progress in its South Korea projects is providing clear visibility into near-term revenues, with multiple module installations expected through fiscal 2026 and backed by long-term service agreements. The company is also increasing production capacity to improve efficiency and move closer to profitability. In addition, its carbon capture initiative offers further long-term potential, creating opportunities beyond its core power generation business.

This fuel cell power plant maker is expected to post quarterly loss of $0.49 per share in its upcoming report, which represents a year-over-year change of +72.6%. Revenues are expected to be $40.07 million, up 7.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Ormat Technologies (ORA - Free Report) , closed the last trading session 2.2% higher at $114.74. Over the past month, ORA has returned 2.4%.

Ormat Technologies' consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $0.93. Compared to the company's year-ago EPS, this represents a change of +36.8%. Ormat Technologies currently boasts a Zacks Rank of #3 (Hold).

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