Bloom Energy (BE) shares soared 24% in the last trading session to close at $219.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15% gain over the past four weeks.
Bloom Energy’s stock rose sharply mainly because investors reacted very positively to its expanded partnership with Oracle Corporation, which includes plans to deploy up to 2.8 GW of fuel cell capacity for AI data centers.
With 1.2 GW already signed and in progress, this deal represents a huge, multi-year income opportunity and puts Bloom at the forefront of the rapidly expanding AI infrastructure business, where need for reliable electricity is rising.
This developer of fuel cell systems is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $498.11 million, up 52.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Bloom Energy, the consensus EPS estimate for the quarter has been revised 9.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Bloom Energy belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Kolibri Global Energy Inc. (KGEI), closed the last trading session 5.9% lower at $4.98. Over the past month, KGEI has returned 12.6%.
For Kolibri Global Energy Inc., the consensus EPS estimate for the upcoming report has changed +61.5% over the past month to $0.17. This represents a change of +6.3% from what the company reported a year ago. Kolibri Global Energy Inc. currently has a Zacks Rank of #2 (Buy).
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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).