Bloom Energy (BE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Bloom Energy (BE) closed the most recent trading day at $262.87, moving -8.95% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Elsewhere, the Dow saw a downswing of 0.67%, while the tech-heavy Nasdaq depreciated by 0.92%.

Heading into today, shares of the developer of fuel cell systems had gained 36.97% over the past month, outpacing the Oils-Energy sector’s gain of 1.13% and the S&P 500’s gain of 0.96%.

The investment community will be closely monitoring the performance of Bloom Energy in its forthcoming earnings report. In that report, analysts expect Bloom Energy to post earnings of $0.72 per share. This would mark year-over-year growth of 380%. At the same time, our most recent consensus estimate is projecting a revenue of $1.07 billion, reflecting a 106.31% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.7 per share and revenue of $4.14 billion. These totals would mark changes of +255.26% and +104.34%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Bloom Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Bloom Energy boasts a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Bloom Energy is currently trading at a Forward P/E ratio of 106.79. This expresses a premium compared to the average Forward P/E of 17.61 of its industry.

It is also worth noting that BE currently has a PEG ratio of 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Alternative Energy – Other industry currently had an average PEG ratio of 2.2 as of yesterday’s close.