Jim Cramer Says He Will Feel "A Lot More Comfortable About Recommending" Bloom Energy After a Pullback

Bloom Energy Corporation (NYSE:BE) is one of the stocks Jim Cramer commented on. Cramer called the stock “incredibly volatile,” as he stated:

I think this one’s legit. I just don’t know if it’s too legit to quit. Bloom Energy’s latest rally is not like what we saw in 2018 or 2020. This company has announced a series of major deals with a set of very legitimate partners. Data center operators are desperate for on-site power solutions, and this is a tested technology… What’s changed is that demand for them is now off the charts… Of course, this story is not just about contracts; it’s also about sales and earnings. I wouldn’t be so confident about Bloom if the numbers weren’t excellent… After Bloom turned profitable in 2024, then their earnings nearly tripled last year. They should roughly double again this year… All that said, while Bloom Energy has become a phenomenal growth story, that doesn’t necessarily mean the stock’s worth buying here.

We gotta like suss this out a little. When I first covered the story back in September, I admit that I said the same thing: wait for a pullback. But that turned out to be way too cautious… It’s trading at 118 times the midpoint of this year’s earnings forecast. If you’re willing to use the estimates for the out years, the stock sells for 57 times 2027, 36 times 2028. That’s more reasonable. But it’s not what anyone would ever call cheap. Besides, a lot can happen between now and 2028. Plus, don’t forget, Bloom is an incredibly volatile stock. I mean, there’s a pretty good chance that we get another pullback here, one that gives you a better, more palatable entry point…

It’ll become harder and harder for Bloom to surprise to the upside simply because when you keep beating the numbers, the analysts finally get wise to you, and they take the numbers up really big… If we get, say… like a 20% pullback, I would feel a lot more comfortable about recommending this one. Bottom line here: If you’re questioning whether Bloom Energy’s fundamentals are real, I gotta borrow a line from the legendary Teri Hatcher in Seinfeld: They’re real and they’re spectacular.

Photo by Adam Nowakowski on Unsplash

Bloom Energy Corporation (NYSE:BE) develops and sells solid-oxide fuel cell systems that convert natural gas, biogas, or hydrogen into electricity without combustion. The company also provides electrolyzers for hydrogen production.

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