Bloom Energy Skyrockets 143% YTD: Time to Buy the Stock?

Bloom Energy Corporation BE has gained 143% year to date, outperforming the Zacks Alternative Energy - Other industry’s increase of  6.3%, the Zacks Oil & Energy sector’s increase of 28.6% and the S&P 500’s gain of 12.5% in the same time frame.

Bloom Energy is a global leader in onsite power generation, gaining from increasing demand for clean energy from AI-driven data centers, as well as from customers increasingly adopting distributed energy solutions to bypass transmission and distribution constraints.

BE vs Industry, Sector, S&P 500 YTD

Image Source: Zacks Investment Research

Shares of other industry players like Talen Energy TLN have lost 4.6% in the past three months, while those of Plug Power PLUG have gained 12.7%.

Is Bloom Energy Expensive?

Bloom Energy is currently trading at a premium valuation. Its forward 12-month price-to-sales (P/S) ratio of 11.14X stands higher than the industry’s 5.03X and the median of 2.81X over the last five years.
 

Image Source: Zacks Investment Research

 BE is expensive compared with other industry players like Talen Energy and Plug Power.

The Case for Bloom Energy

Bloom Energy is expanding its onsite power platform to address electricity shortages, lengthy deployment timelines and rising energy costs. The company is positioned to benefit from several long-term trends, including rapid growth in AI infrastructure, grid capacity constraints, increasing demand for dependable and affordable electricity, and government support for energy independence and domestic manufacturing.

Its Energy Server platform provides scalable on-site electricity by connecting directly to customers’ electrical systems, thus reducing dependence on traditional transmission networks. Powered by Bloom Energy’s proprietary solid oxide technology, the platform generates electricity through an efficient electrochemical process, delivering reliable and cleaner energy to commercial and utility customers. Its adoption is expected to increase among AI data centers, cryptocurrency mining operations, advanced manufacturers and other energy-intensive industries.

Management highlighted the company’s accelerating growth on its latest earnings call. Bloom Energy took 21 years to record its first $1 billion revenue year in 2022 and another three years to double that figure. It now expects to double revenues again in just one year.

Bloom Energy and Brookfield also recently expanded their strategic partnership, raising planned investment in AI-related power infrastructure from $5 billion to $25 billion. This fivefold increase reflects surging electricity demand driven by the global development of hyperscale AI data centers.

Meanwhile, Bloom Energy continues investing in research and development to improve system performance, lower manufacturing costs and strengthen profitability. Over the long term, the company aims to establish its solid oxide fuel-cell technology as the preferred on-site power solution for data centers, critical infrastructure and other energy-intensive applications.

Optimistic Growth Estimate for BE

The Zacks Consensus Estimate for 2026 and 2027 revenues implies 104.3% and 57% year-over-year increases, respectively.  

The consensus estimate for 2026 and 2027 earnings implies 239.5% and 85.16% year-over-year increases, respectively.  The company has a Growth Score of A. The expected long-term earnings growth rate is pegged at 38%, much higher than the industry average of 17.1%.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Bloom Energy’s 2026 and 2027 earnings has moved 25% and 12.5% north in the last 30 days, reflecting analysts' optimism in the stock.

The Zacks Consensus Estimate for 2026 EPS of Talen Energy has moved south, but the same for 2027 has moved north in the last 30 days. 
On the other hand, the Zacks Consensus Estimate for 2026 and 2027 EPS of Plug Power witnessed no movement in the last 30 days.

BE Stock Returns Better Than Its Industry

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 54.8% compared with the industry average of 7.2%.

Parting Thoughts on BE

Bloom Energy continues to deliver strong results, supported by rising demand for cleaner energy and its ability to provide reliable, rapidly deployable power solutions. Its customized onsite energy systems enable customers to reduce their reliance on traditional grid infrastructure, creating a solid foundation for future growth. The company also presents an attractive investment opportunity, backed by improving earnings expectations, strong share-price momentum and a return on equity above the industry average.

Thus, despite premium valuation at the current levels, we recommend investors add this Zacks Rank #1 (Strong Buy) stock to their portfolios. You can see the complete list of today’s Zacks #1 Rank stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research