Bloom Energy Is Down 43% From Its High. Should You Buy the Dip?
Bloom's business is booming. Could its beaten-down stock be a buying opportunity?
Bloom Energy, a clean energy company, experienced a 43% decline in its stock price since its 52-week high of $350, currently trading around $200. Despite this setback, the company's third quarter was a success, with revenue rising 138% year-over-year to $1.24 billion. The company has also raised its full-year 2026 guidance to a range of $4.4 billion to $4.6 billion.
Bloom Energy recently announced a significant deal with NTT DATA to deploy 900 megawatts of fuel cell power to data centers worldwide, potentially making it the largest international deployment yet.
The slowdown in data center construction, a major driver of Blooms growth, has caused concerns among investors. However, the company's valuation remains high, trading at approximately 62 times its projected adjusted earnings for the year. Despite the higher valuation, Bloom Energy is growing much faster than other industrial companies, with an order backlog of about $20 billion. The company's recent results suggest that it can meet the strong execution demands placed upon it.
For investors willing to endure the market volatility, Bloom Energy may present an opportunity to invest in a company with significant future growth potential. The Motley Fool's Stock Advisor has identified the company as one of the top 10 stocks to buy right now, with an average return of 823% compared to the S&P 500's 209%.
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