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Bloom Energy Surges Past 50 & 200-Day SMAs: How to Trade the Stock?
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Key Takeaways
Bloom Energy trades above 50 and 200-day SMAs, extending a 91.8% six-month rally.
BE's Energy Server delivers on-site clean power, easing grid bottlenecks with modular solid oxide tech.
BE posts 29.44% ROE vs. 7.16% industry, even as it trades at a 15.51x forward P/S premium.
Bloom Energy Corporation (BE - Free Report) is trading above its 50 and 200-day simple moving averages (SMAs), signaling a bullish trend. BE’s shares have gained significantly in the past 12 months, and it has reported positive earnings surprises in the past four reported quarters.
Bloom Energy is benefiting from rising demand for clean power, fueled by AI-driven data center expansion and a growing shift toward distributed energy solutions that allow customers to bypass transmission and distribution bottlenecks.
BE 50 & 200 Day SMAs
Image Source: Zacks Investment Research
BE is trading above its 50 and 200-day SMAs, signaling a bullish trend. The 50 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 gain of 91.8% in the past six months compared with the Zacks Alternative Energy - Other industry’s rally of 9.1%. The company has also outperformed the Zacks Oil & Energy sector’s return of 28.8% and the S&P 500’s rally of 5.8% in the same time frame.
Another company, Plug Power Inc. (PLUG - Free Report) , is also working to produce clean energy for its customers. Plug Power is developing an integrated “hydrogen highway” across North America and Europe, covering the full value chain from green hydrogen production to delivery. In the past six months, shares of Plug Power have declined 13.9%.
Price Performance (Six Months)
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.
What’s Fueling Bloom Energy’s Strong Performance?
BE’s Energy Server platform delivers efficient, clean and reliable power for commercial and utility customers. Using proprietary solid oxide technology, it generates electricity through electrochemical conversion rather than combustion. The company stands to benefit from rising demand for dependable clean energy driven by AI data centers, crypto-mining operations and the reshoring of U.S. manufacturing.
As electricity demand continues to outstrip supply, gaps in transmission and distribution infrastructure are becoming more apparent. Bloom Energy addresses this issue through its Energy Server system, which can operate in parallel with the grid by connecting directly to a customer’s main electrical feed, reducing losses associated with centralized power networks. Its modular design also allows multiple units to be combined, enabling scalable output from a few hundred kilowatts to several hundred megawatts.
The company is well-positioned to benefit from government incentives promoting clean energy. BE’s technology is further reinforced by partnerships with major tech firms, highlighting the ability to reliably supply large-scale clean power and supporting its prospects for expansion.
Bloom Energy continues to invest in research and development, improving the operational excellence of its modules and also assists in reducing production costs, boosting margins.
BE’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Bloom Energy’s earnings per share for 2026 and 2027 indicates year-over-year growth of 81.58% and 111.47%, respectively.
Image Source: Zacks Investment Research
The same for Plug Power’s earnings per share for 2026 and 2027 implies year-over-year growth of 77.46% and 34.53%, respectively.
BE Stock Returns Better Than Its Industry
The return on equity (“ROE”) measures how well a company is utilizing its shareholders’ funds to generate profits. ROE compares net income with shareholders' equity.
ROE of Bloom Energy was 29.44% compared with the industry average of 7.16%.
Image Source: Zacks Investment Research
Talen Energy Corporation (TLN - Free Report) , operating in the same industry, benefits from rising data center demand and strategic grid assets, supporting stable cash flows and long-term growth potential. Talen Energy’s ROE is pegged at 22.58%, which is better than the industry average.
BE Is Trading at a Premium
Bloom Energy is currently trading at a premium valuation compared with its industry, with the forward 12-month price-to-sales (P/S) ratio at 15.51X. The industry is currently trading at 5.52X.
Image Source: Zacks Investment Research
Talen Energy is currently trading at P/S F12M of 3.52X, a discount to the industry average.
Wrapping Up
Bloom Energy continues to deliver steady performance, supported by growing demand for clean energy and its ability to provide on-site power solutions tailored to customer needs. Demand is expected to strengthen further as the adoption of flexible, distributed generation expands.
The company’s improving earnings estimates, strong price momentum and return on equity above the industry average enhance its investment appeal.
Given its premium valuation, we advise new investors to wait before initiating a position in this Zacks Rank #3 (Hold) stock.
View the Zacks #1 Rank List
Image: Shutterstock
Bloom Energy Surges Past 50 & 200-Day SMAs: How to Trade the Stock?
Key Takeaways
Bloom Energy Corporation (BE - Free Report) is trading above its 50 and 200-day simple moving averages (SMAs), signaling a bullish trend. BE’s shares have gained significantly in the past 12 months, and it has reported positive earnings surprises in the past four reported quarters.
Bloom Energy is benefiting from rising demand for clean power, fueled by AI-driven data center expansion and a growing shift toward distributed energy solutions that allow customers to bypass transmission and distribution bottlenecks.
BE 50 & 200 Day SMAs
Image Source: Zacks Investment Research
BE is trading above its 50 and 200-day SMAs, signaling a bullish trend. The 50 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 gain of 91.8% in the past six months compared with the Zacks Alternative Energy - Other industry’s rally of 9.1%. The company has also outperformed the Zacks Oil & Energy sector’s return of 28.8% and the S&P 500’s rally of 5.8% in the same time frame.
Another company, Plug Power Inc. (PLUG - Free Report) , is also working to produce clean energy for its customers. Plug Power is developing an integrated “hydrogen highway” across North America and Europe, covering the full value chain from green hydrogen production to delivery. In the past six months, shares of Plug Power have declined 13.9%.
Price Performance (Six Months)
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.
What’s Fueling Bloom Energy’s Strong Performance?
BE’s Energy Server platform delivers efficient, clean and reliable power for commercial and utility customers. Using proprietary solid oxide technology, it generates electricity through electrochemical conversion rather than combustion. The company stands to benefit from rising demand for dependable clean energy driven by AI data centers, crypto-mining operations and the reshoring of U.S. manufacturing.
As electricity demand continues to outstrip supply, gaps in transmission and distribution infrastructure are becoming more apparent. Bloom Energy addresses this issue through its Energy Server system, which can operate in parallel with the grid by connecting directly to a customer’s main electrical feed, reducing losses associated with centralized power networks. Its modular design also allows multiple units to be combined, enabling scalable output from a few hundred kilowatts to several hundred megawatts.
The company is well-positioned to benefit from government incentives promoting clean energy. BE’s technology is further reinforced by partnerships with major tech firms, highlighting the ability to reliably supply large-scale clean power and supporting its prospects for expansion.
Bloom Energy continues to invest in research and development, improving the operational excellence of its modules and also assists in reducing production costs, boosting margins.
BE’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Bloom Energy’s earnings per share for 2026 and 2027 indicates year-over-year growth of 81.58% and 111.47%, respectively.
Image Source: Zacks Investment Research
The same for Plug Power’s earnings per share for 2026 and 2027 implies year-over-year growth of 77.46% and 34.53%, respectively.
BE Stock Returns Better Than Its Industry
The return on equity (“ROE”) measures how well a company is utilizing its shareholders’ funds to generate profits. ROE compares net income with shareholders' equity.
ROE of Bloom Energy was 29.44% compared with the industry average of 7.16%.
Image Source: Zacks Investment Research
Talen Energy Corporation (TLN - Free Report) , operating in the same industry, benefits from rising data center demand and strategic grid assets, supporting stable cash flows and long-term growth potential. Talen Energy’s ROE is pegged at 22.58%, which is better than the industry average.
BE Is Trading at a Premium
Bloom Energy is currently trading at a premium valuation compared with its industry, with the forward 12-month price-to-sales (P/S) ratio at 15.51X. The industry is currently trading at 5.52X.
Image Source: Zacks Investment Research
Talen Energy is currently trading at P/S F12M of 3.52X, a discount to the industry average.
Wrapping Up
Bloom Energy continues to deliver steady performance, supported by growing demand for clean energy and its ability to provide on-site power solutions tailored to customer needs. Demand is expected to strengthen further as the adoption of flexible, distributed generation expands.
The company’s improving earnings estimates, strong price momentum and return on equity above the industry average enhance its investment appeal.
Given its premium valuation, we advise new investors to wait before initiating a position in this Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.