Bloom Energy (BE) Moves 7.8% Higher: Will This Strength Last?

Bloom Energy (BE) shares ended the last trading session 7.8% higher at $23.92. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.1% gain over the past four weeks.

Bloom Energy is well-positioned to benefit from the Senate’s newly revised bill, which offers expanded support for hydrogen and other renewable energy sources. The latest version eases eligibility criteria and extends provisions for the 45V hydrogen tax credit, creating a more favorable environment for hydrogen projects.

Bloom Energy is poised to capitalize on the surging energy demands of data centers. Its on-site power generation solutions can enhance energy efficiency, lower emissions, and provide fast, reliable power, helping data centers meet their growing operational needs more sustainably.

This developer of fuel cell systems is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +116.7%. Revenues are expected to be $385.61 million, up 14.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Bloom Energy, the consensus EPS estimate for the quarter has been revised 6.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Bloom Energy is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Constellation Energy Corporation (CEG), finished the last trading session 0.8% higher at $322.76. CEG has returned 4.6% over the past month.

For Constellation Energy Corporation, the consensus EPS estimate for the upcoming report has changed -9.7% over the past month to $2.05. This represents a change of +22% from what the company reported a year ago. Constellation Energy Corporation currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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