Eos Energy Enterprises, Inc. (EOSE): A Bull Case Theory

We came across a bullish thesis on Eos Energy Enterprises, Inc. on stocks subreddit by RaZE___SoViEt. In this article, we will summarize the bulls’ thesis on EOSE. Eos Energy Enterprises, Inc.'s share was trading at $16.68 as of January 28th.

EoS Energy Enterprises (EOSE) is a U.S.-based manufacturer of zinc-based battery energy storage systems, positioning itself as a differentiated player in grid-scale and data center power solutions. Its flagship Znyth Z3 systems are designed for mid- to long-duration backup and grid support, making them particularly well suited for AI and hyperscale data centers with volatile and sustained power demands.

Unlike lithium-ion alternatives, EoS’s batteries are not thermally intensive, require no active cooling, and offer longer life cycles, translating into meaningful cost savings across installation, operation, and maintenance. Roughly one-quarter of the company’s pipeline is already tied to data centers, where its systems serve as a faster, cleaner, and more cost-effective alternative to legacy diesel generators while providing superior grid support capabilities.

Recent financial performance highlights that demand is not the constraint; execution and production capacity are. While 2025 revenues have trailed expectations due to productivity and delivery timing rather than order flow, the company continues to report strong underlying demand, with an estimated $22.6 billion pipeline and a $644 million backlog.

Management expects a production and delivery ramp in the fourth quarter of 2025, setting the stage for materially stronger revenue as operational bottlenecks are addressed. Looking into 2026, several catalysts could unlock value, including detailed updates at the Q4/FY2025 earnings release, the start of Line 2 production in the second half of 2026 enabling multi-gigawatt-hour capacity expansion, and potential major order announcements from hyperscalers and utilities.

The macro backdrop further strengthens the thesis. Rising AI and data center power needs are colliding with supply-chain and tariff pressures, including a sharp increase in U.S. tariffs on Chinese lithium-ion batteries starting in 2026. With China controlling the majority of the lithium supply chain, EoS’s domestically manufactured, non-lithium technology offers a strategic advantage. While lithium remains better suited for short-burst applications, EoS appears well positioned at the forefront of longer-duration energy storage demand, offering substantial upside if execution catches up with opportunity.

Previously, we covered a bullish thesis on Microvast Holdings, Inc. (MVST) by Crazerz in January 2025, which highlighted the company’s undervaluation versus revenue, improving profitability, and battery technology innovation. MVST’s stock price has appreciated by approximately 34.78% since our coverage due to renewed investor interest in battery stocks. RaZE___SoViEt shares a similar thesis but emphasizes grid-scale storage and data center demand.

Eos Energy Enterprises, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held EOSE at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of EOSE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EOSE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.