Shares of Bloom Energy Corporation BE have gained 20% in the past month against the Zacks Alternative Energy - Other industry’s decline of 0.1%. The company has also outperformed the Zacks Oil & Energy sector’s return of 3.6% and the S&P 500’s decline of 0.8% in the same time frame.
Bloom Energy is benefiting from rising demand for clean energy from AI-driven data centers, along with growing adoption of distributed energy solutions as customers seek to overcome transmission and distribution constraints.
The company will be added to the S&P 500 on Sept. 21, 2026. Inclusion in the benchmark index could further support the stock by strengthening investor confidence, increasing trading activity and potentially driving additional share-price appreciation.
Price Performance (One Month)
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Another industry player, Talen Energy Corporation TLN, operates a fleet of power generation assets that deliver reliable, dispatchable electricity to meet the around-the-clock needs of commercial, industrial and residential customers. Talen Energy has lost 7.6% in the past month, underperforming its industry, the sector and the S&P 500.
Should investors consider adding BE to their portfolios simply because of its recent price rally? A closer look at the company’s key fundamentals and growth drivers can help determine whether the stock presents an attractive investment opportunity now.
What’s Powering Bloom Energy’s Share Price Gains?
Bloom Energy is expanding its onsite power platform to address electricity shortages, long deployment timelines and rising energy costs. The company stands to benefit from several structural trends, including rapid AI infrastructure growth, constrained grid capacity, increasing demand for reliable and affordable power, and government initiatives supporting energy independence and domestic manufacturing.
Its Energy Server platform delivers scalable onsite electricity by connecting directly to customers’ electrical systems, reducing reliance on traditional transmission infrastructure. Based on Bloom Energy’s proprietary solid oxide technology, the system generates electricity through an efficient electrochemical process, providing dependable and cleaner power to commercial and utility customers. Adoption could continue to rise among AI data centers, cryptocurrency miners, advanced manufacturers and other power-intensive industries.
Bloom Energy and Brookfield also expanded their strategic partnership, increasing planned investment in AI-related power infrastructure from $5 billion to $25 billion. This fivefold increase underscores the sharp rise in electricity demand stemming from the global expansion of hyperscale AI data centers.
The financial benefits of this demand are already becoming visible. Revenues more than doubled year over year to $1.8 billion in the first half of 2026, with AI data centers emerging as an important growth driver. Reflecting this momentum, Bloom Energy raised its 2026 revenue guidance to $3.9-$4.2 billion and expects a non-GAAP gross margin of about 34%, indicating that strong top-line growth is being accompanied by healthy profitability.
BE’s EPS Estimates Moving Up
The Zacks Consensus Estimate for BE’s third-quarter and fourth-quarter 2026 earnings per share (EPS) witnessed northbound movement in the last 60 days. The same holds true for full-year 2026 and 2027 EPS estimates.
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The Zacks Consensus Estimate for Talen Energy’s 2026 earnings per share declined 5.2% and 2027 estimates increased 5.92% in the past 60 days.
BE’s Expensive Valuation
Bloom Energy is currently trading at a premium valuation. Its forward 12-month price-to-sales (P/S) ratio of 12.94X is higher than the industry’s 4.89X.
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Another company, Plug Power Inc. PLUG, is also working to produce clean energy for its customers. Plug Power is currently trading at a P/S F12M of 3.26X, a discount to the industry.
BE’s Earnings Surprise
Bloom Energy is delivering strong earnings performance courtesy of rising demand for its services. The company’s earnings surpassed estimates in the past four quarters.
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Plug Power’s earnings also surpassed estimates in each of the past four quarters, resulting in an average surprise of 17.83%.
BE Stock Returns Better Than Its Industry
The return on equity (“ROE”) measures how well a company is utilizing its shareholders’ funds to generate profits. ROE compares net income with shareholders' equity.
ROE of Bloom Energy was 35.45% compared with the industry average of 7.14%.
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Wrapping Up
Bloom Energy continues to deliver steady performance, supported by growing demand for clean energy and its ability to provide on-site power solutions tailored to customer needs. Demand is expected to strengthen further as the adoption of flexible, distributed generation expands.
Bloom Energy’s strong price performance, rising earnings estimates and returns better than the industry average enhance its investment appeal.
Thus, despite the premium valuation at current levels, we believe this Zacks Rank #1 (Strong Buy) stock remains an attractive investment and recommend adding it to investors’ portfolios.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Bloom Energy Corporation (BE): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).