Thursday, April 25, 2024
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Bet on the Future of Hydrogen with BE Stock

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Will Bloom Energy (NYSE:BE) bloom in 2023? That’s the billion-dollar question as financial traders can’t seem to decide what to do with BE stock. Yet, you’re encouraged to decide for yourself as Bloom Energy’s top-line data and top-notch technology should entice hydrogen-market enthusiasts.

Hailing from California, Bloom Energy manufactures a solid oxide platform that’s used to generate electricity and hydrogen. It’s a go-to resource for businesses seeking to produce clean, hydrogen-based fuel, as Bloom Energy has Fortune 100 companies among its clientele.

Bloom Energy will be front and center as nations and businesses around the world join the green energy movement. Perhaps Wall Street doesn’t recognize this yet, but you don’t have to sit around and wait for financial traders to understand the growth potential of the clean hydrogen market, and of Bloom Energy.

BE Stock Hasn’t Made Its Big Move Yet

Goldman Sachs analysts consider green hydrogen a once-in-a-lifetime opportunity. They estimate that the addressable market for green hydrogen could be worth 10 trillion euros, or $11.7 trillion, by 2050.

Yet, BE stock basically went nowhere in 2022, and over the past five years. That’s not unusual for emerging, disruptive technologies. It just means that you’ll want to have a long-term time horizon if you plan to invest in Bloom Energy.

Still, if you’re patient, a stake in Bloom Energy shares could really pay off. The company has international ambitions, as Bloom Energy is partnering with engineering, procurement and construction company Cefla to expand Bloom’s footprint in the Italian market for solid oxide fuel cells.

Moreover, Bloom Energy recently unveiled its high-volume commercial electrolyzer line. This technology, according to Bloom Energy, increases the company’s electrolyzer-generating capacity to two gigawatts, and represents “the most energy-efficient design to produce clean hydrogen to date.”

Bloom Energy’s Revenue Growth Is Impressive

So, Bloom Energy has proprietary technology to produce hydrogen in mega-sized quantities. Still, the skeptics will want evidence that Bloom Energy can translate its hydrogen-tech ambitions into revenue growth.

Indeed, the company checks this box as Bloom Energy increased its revenue by 41% year-over-year (YOY) to $292.3 million during this year’s third quarter. That result represents “record third-quarter revenue” for the company, as Bloom Energy Executive Vice President and CFO Greg Cameron points out.

It’s also encouraging to know that Bloom Energy reaffirmed its full-year 2022 revenue outlook of $1.1 billion to $1.15 billion. Cameron sounded confident, celebrating Bloom Energy’s “very strong operating quarter” in which the company strengthened its liquidity position.

What You Can Do Now

Don’t get the wrong impression here. The hydrogen industry is still emerging, and there’s risk involved for investors. Therefore, BE stock gets a “B” rating for now.

However, if you envision an expansive future for the hydrogen tech industry, Bloom Energy is worth a look. The company’s revenue trajectory is certainly notable. In light of this, patient investors might choose to try a small share position in Bloom Energy for the long term.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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