• Bloom Energy (BE) shows strong technical momentum, hitting new highs and gaining 331.23% over the past year.
• All major indicators are signaling a “Buy.”
• Fundamentals are robust, with projected double-digit revenue and earnings growth for the next two years.
• While Bloom Energy’s technology is promising, the stock is speculative and volatile.

Today’s Featured Stock

Valued at $12.39 billion, Bloom Energy (BE) generates and distributes renewable energy. It supplies electricity to the residential, commercial, and industrial sectors. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BE checks those boxes. Since the Trend Seeker signaled a buy on May 16, the stock has gained 148.23%.

BE Price vs. Daily Moving Averages:

Barchart Technical Indicators for Bloom Energy

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Bloom Energy shares hit a new all-time high on Aug. 28, touching $55.07 during intraday trading.

• BE has a Weighted Alpha of +217.55.
• Bloom Energy has an 100% “Buy” opinion from Barchart.
• The stock gained 331.23% over the past year.
• BE has its Trend Seeker “Buy” signal intact.
• Bloom Energy is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 11 new highs and gained 39.87% in the last month.
• Relative Strength Index (RSI) is at 69.73%.
• There’s a technical support level around $52.18.

Don’t Forget the Fundamentals

• $12.39 billion market capitalization.
• 481.27x trailing price-earnings ratio.
• Revenue is projected to grow 19.02% this year and another 19.92% next year.
• Earnings are estimated to increase 79.08% this year and an additional 65.15% next year.

Analyst and Investor Sentiment on SSR Mining

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are in a big disagreement about Bloom.

• The Wall Street analysts tracked by Barchart have issued 7 “Strong Buy,” 2 “Moderate Buy,” 9 “Hold,” and 2 “Sell” opinions on the stock.
• Their price targets are between $10-$48 – a very wide range.
• Value Line gives the stock an “Average” rating.
• CFRA’s MarketScope Advisor gives the stock a “Hold” rating.
• Morningstar thinks the stock is 178% overvalued.
• 155 individual investors following the stock on Motley Fool think the stock will beat the market while 61 think it won’t.
• 28,010 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Bloom Energy

BE currently has momentum and is hitting new highs. With price appreciation and double-digit growth projected in both revenue and earnings, this might warrant further consideration. 

However, Value Line makes a good point: “Bloom has the ability to produce fuel cells for utilities, ecoparks and AI data centers in less than 50 days. Compared to the more traditional electricity providers, this is an amazingly short span of time. Additionally, there are no greenhouse gas emissions that have to be sequestered, and once contracts are in place, they usually stay put for over a decade....  Currently, Bloom’s method of producing electricity is a gap filler to this industry rather than a mainstay. And in the present economic and political climate, the company is likely to struggle.”

I caution that Bloom Energy is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.