Why Bloom Energy (BE) Dipped More Than Broader Market Today

Bloom Energy (BE) closed at $159.99 in the latest trading session, marking a -2.91% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.57%. Elsewhere, the Dow lost 1.61%, while the tech-heavy Nasdaq lost 0.26%.

The developer of fuel cell systems's shares have seen an increase of 11.83% over the last month, surpassing the Oils-Energy sector's gain of 7.17% and the S&P 500's loss of 0.15%.

The investment community will be closely monitoring the performance of Bloom Energy in its forthcoming earnings report. On that day, Bloom Energy is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 200%. Meanwhile, the latest consensus estimate predicts the revenue to be $498.11 million, indicating a 52.79% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.38 per share and a revenue of $3.25 billion, indicating changes of +81.58% and +60.51%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Bloom Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 106.32% higher. Bloom Energy presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Bloom Energy is currently being traded at a Forward P/E ratio of 119.41. This valuation marks a premium compared to its industry average Forward P/E of 18.47.

It's also important to note that BE currently trades at a PEG ratio of 4.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Alternative Energy - Other was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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