Bloom Energy (BE) Stock Drops Despite Market Gains: Important Facts to Note

Bloom Energy (BE) ended the recent trading session at $25.85, demonstrating a -9.96% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the developer of fuel cell systems had gained 27.43% over the past month, outpacing the Oils-Energy sector's gain of 4.96% and the S&P 500's gain of 4.37%.

The investment community will be closely monitoring the performance of Bloom Energy in its forthcoming earnings report. The company is predicted to post an EPS of $0.01, indicating a 116.67% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $385.61 million, up 14.84% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.42 per share and revenue of $1.75 billion, indicating changes of +50% and +18.95%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Bloom Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Bloom Energy possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Bloom Energy currently has a Forward P/E ratio of 67.82. This valuation marks a premium compared to its industry average Forward P/E of 19.51.

We can additionally observe that BE currently boasts a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.48.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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