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Bloom Energy Crosses Key SMAs: Should Investors Buy the Stock Now?

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Key Takeaways

  • Bloom Energy trades above key SMAs after a 237.7% gain in a year, signaling positive price momentum.
  • AI data center demand and grid constraints are expanding opportunities for Bloom Energy's on-site power.
  • Bloom Energy's strong ROE and rising EPS estimates are tempered by high debt and a premium valuation.

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 quarters.

Bloom Energy is benefiting from increasing demand for clean, reliable power, supported by rapid AI-driven data center growth and greater adoption of distributed energy solutions that help customers avoid transmission and distribution constraints.

BE’s 50 & 200 Day SMAs

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BE is trading above its 50-day and 200-day simple moving averages, indicating positive price momentum. These widely followed technical indicators help traders and analysts identify potential support and resistance levels, while sustained trading above them is generally viewed as an early signal of a broader uptrend.

Shares of Bloom Energy have registered a gain of 237.7% in the past year against the Zacks Alternative Energy - Other industry’s decline of 7%. The company has also outperformed the Zacks Oil & Energy sector’s return of 30.8% and the S&P 500’s rally of 16.2% in the same time frame.

Another clean-energy player, Plug Power Inc. (PLUG - Free Report) , is expanding its hydrogen capabilities across North America and Europe. The company is building an integrated “hydrogen highway” spanning the full value chain, from green hydrogen production to distribution and delivery. Over the past year, PLUG’s shares have declined 49.1%.

Price Performance (One year)

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BE’s recent price strength may attract investors, but momentum alone should not drive an investment decision. Evaluating the company’s earnings prospects, growth opportunities, valuation and key risks is essential to determine whether the stock offers sufficient upside potential to justify adding it to a portfolio.

Can Bloom Energy Sustain Its Strong Stock Momentum?

Bloom Energy’s Energy Server platform provides efficient, reliable and lower-emission power to commercial and utility customers. Built on proprietary solid oxide technology, the system generates electricity through an electrochemical process rather than combustion. Rising power requirements from AI-driven data centers, crypto-mining facilities and the reshoring of U.S. manufacturing should create meaningful growth opportunities for Bloom Energy.

At the same time, electricity demand is increasing faster than transmission and distribution infrastructure can expand, creating grid constraints in several markets. Bloom Energy’s Energy Servers help address this challenge by connecting directly to a customer’s electrical system and operating alongside the grid, reducing dependence on centralized power infrastructure and associated transmission losses. Their modular architecture also enables customers to scale capacity from hundreds of kilowatts to several hundred megawatts as power requirements grow.

Bloom Energy’s DC-native fuel cell solution strengthens its position in the fast-growing AI data center market by reducing power infrastructure requirements, conversion losses and reliance on constrained grid equipment. For a 1-GW facility, the system could lower non-compute capital spending by $3.6 billion and five-year ownership costs by $5.5 billion, supporting stronger customer economics and adoption potential.

Bloom Energy and Brookfield expanded their strategic partnership, increasing planned investment in AI-focused power infrastructure from $5 billion to $25 billion. The fivefold increase underscores accelerating electricity demand from hyperscale AI data centers and highlights the growing opportunity for Bloom Energy to support large-scale, reliable power needs.

BE’s EPS Estimates Moving Up

The Zacks Consensus Estimate for BE’s 2026 and 2027 earnings per share (EPS) reflects year-over-year growth of 255.26% and 80.56%, respectively.

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The same for PLUG’s 2026 and 2027 EPS reflects year-over-year growth of 71.13% and 58.05%, 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 35.45% compared with the industry average of 8.28%.

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Operating in the same industry, Talen Energy Corporation (TLN - Free Report) benefits from rising data center demand and strategic grid assets, supporting stable cash flows and long-term growth potential. Talen Energy’s ROE is 43.32%, better than the industry average.

BE’s Debt Level Higher than Industry

Bloom Energy is presently using more debt compared with the peers in its industry. The current debt-to-capital of the company is 62.07% higher than its industry level of 42.93%.

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Bloom Energy Is Expensive

Bloom Energy is currently trading at a premium valuation. Its forward 12-month price-to-sales (P/S) of 14.63X stands higher than the industry’s 5.09X and the median of 12.81X over the past five years.

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Talen Energy is currently trading at P/S F12M of 3.53X, a discount to the industry level.

Summing Up

Bloom Energy continues to post steady performance, supported by rising clean-energy demand and its ability to deliver reliable, on-site power solutions tailored to customers’ requirements. Growth prospects could strengthen further as businesses increasingly adopt flexible, distributed generation to address rising electricity needs and grid constraints.

Improving earnings expectations and an ROE that exceeds the industry average strengthen BE’s investment case. Still, relatively high debt utilization and a premium valuation temper its near-term appeal. Given the current risk-reward balance, prospective investors may prefer to wait for a more attractive valuation before initiating a position.

Bloom Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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