Bloom Energy Corp. (NYSE: BE) stock has traded for as low as $3.00 in the last year and recently hit a high of $40. Despite being almost four times the price of what is traditionally considered “bargain” territory, this is still a top pick for small alternative portfolios.
Bloom sells on-site generators that use natural gas and biogas to create electricity without combustion. In an age where industrial, corporate, and government organizations are looking to reduce their carbon output, Bloom’s solution is appealing. Bloom earnings are forecast to grow by 62% over the next year.
The stock has grown by 34% in the year to date and has far exceeded its average price target of $27.50. Investors now have a choice. The momentum behind this stock and its expected earnings growth could drive the price higher and may attract new revisions. Seeing how convincingly this stock has blown past all targets in recent months, it’s worth considering as a pick for the new year. It has risk but in the long-term, the company is only likely to expand, which could create more demand for shares and even bigger returns for shareholders.
Any bargain investor interested in an alternative energy stock that looks ready for the mainstream should watch Bloom closely in 2021. It’s still a great value at its current price.
- 1 Year Price Growth: 73%
- YTD Price Growth: 61%
- 3 Month Price Growth: 24%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.