Bloom Energy (BE) Stock Sinks Amid Market Gains: Here's What You Should Know

Bloom Energy (BE - Free Report) recently concluded its trading session at $24.19, reflecting a decline of -1.14% from the previous day. This downturn stands in contrast to the performance of major indices, where the S&P 500 registered a gain of 0.64%, the Dow rose by 0.85%, and the tech-centric Nasdaq increased by 0.31%.

As of late, Bloom Energy shares have seen a 3.7% decrease over the past month. During that period, the Oils-Energy sector has dropped by 3.15%, and the S&P 500 overall has fallen by 7.69%.

Investors are keenly anticipating the company’s upcoming earnings report. Analysts estimate that Bloom Energy will report an earnings per share (EPS) of -$0.08 for the quarter, which represents a significant improvement of 52.94% compared to the same quarter last year. Furthermore, revenue forecasts suggest net sales of approximately $290.06 million, marking an increase of 23.27% year-over-year.

Looking at the entire fiscal year, the Zacks Consensus Estimates expect Bloom Energy to achieve an EPS of $0.38, with total revenue projected at $1.74 billion. This would indicate growth rates of +35.71% and +18.24%, respectively, compared to the previous year.

In addition, investors should monitor any recent changes in analyst forecasts for Bloom Energy. These revisions often reflect the latest trends in the business landscape, which may shift over time. An upward adjustment in estimates typically signals analysts' confidence in the company’s capabilities and future profits.

Research has shown a strong correlation between these estimate revisions and short-term stock price movements. To leverage this data, the Zacks Rank system was developed, employing a quantitative approach based on these revisions to provide a clear rating guide.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks rated #1 have provided remarkable average annual returns of +25% since 1988. Notably, the Zacks Consensus EPS estimate for Bloom Energy has increased by 200% in the last month, and the company currently holds a Zacks Rank of #2 (Buy).

Valuation is another vital aspect for investors to consider. Currently, Bloom Energy has a Forward P/E ratio of 64.39, which is notably higher when compared to the industry average Forward P/E of 18.97.

Additionally, Bloom Energy's PEG ratio stands at 1.58. This ratio, much like the P/E ratio, also factors in projected earnings growth, while the average PEG ratio in the Alternative Energy - Other industry is just 2.21 as of market close yesterday.

The Alternative Energy - Other industry, of which Bloom Energy is a part, is situated within the Oils-Energy sector and holds a Zacks Industry Rank of 64, which places it in the top 26% of over 250 industries.

The Zacks Industry Rank evaluates the strength of industry groups by calculating the average Zacks Rank of the stocks within them. Research indicates that companies in the top half of rated industries typically outperform those in the bottom half by a margin of two to one.

For more in-depth information on these metrics and other related data, interested individuals can check relevant sources.

Bloom, Energy, Stock