Bloom Energy Corp. (NYSE:BE) Fits the Minervini Growth and Momentum Template

Bloom Energy Corp. (NYSE:BE) has become a significant option for investors using a combined technical and fundamental growth plan, particularly one connected to the ideas made popular by Mark Minervini. This method focuses on finding stocks in solid technical upward moves, using measures like moving averages, relative strength, and price momentum, while also needing strong fundamental growth in earnings, revenue, and profitability. The plan aims to find leaders early in their growth periods, mixing momentum with core business health.

Technical Strength: Meeting the Minervini Trend Template

From a technical view, Bloom Energy shows many features that match closely with Minervini’s Trend Template, a group of measures made to find stocks in strong upward moves. The template centers on price action compared to important moving averages and momentum indicators to verify continued positive momentum.

• Price Above Key Moving Averages: BE’s present price of $52.94 is trading significantly above its 50-day ($33.84), 150-day ($25.31), and 200-day ($24.94) simple moving averages. This shows solid positive alignment across short, medium, and long-term periods, a key part of the Trend Template which needs the current price to be higher than these averages to verify upward move involvement.

• Rising Moving Averages: The 50-day, 150-day, and 200-day moving averages are all in clear upward directions. For example, the 200-day moving average has increased from $24.74 to $24.94, verifying continued long-term momentum. Minervini’s method stresses that increasing averages show gathering buyer interest and move staying power.

• Price Performance Relative to Highs and Lows: BE is trading within 4% of its 52-week high of $55.07, meeting the template’s need that stocks should be within 25% of their yearly highs to capture leading momentum. Also, the present price is over 480% above its 52-week low of $9.02, greatly passing the 30% level and highlighting unusual recovery and health.

• Superior Relative Strength: With a ChartMill Relative Strength (CRS) score of 99.22, BE does better than almost every other stock in the market. High relative strength is vital in Minervini’s plan, as it shows that the stock is a market leader, often pulling institutional interest and showing steadiness during wider market changes.

Fundamental Momentum: Qualifying as a High-Growth Candidate

Beyond technicals, Bloom Energy shows notable fundamental growth, making it a suitable option for high-growth investors. The High Growth Momentum (HGM) rating of at least 4, as screened, is confirmed by outstanding numbers across earnings, revenue, and cash flow.

• Earnings Growth Acceleration: BE’s trailing twelve-month (TTM) earnings per share (EPS) jumped by about 5,600% year-over-year, showing a major profit increase. Quarterly EPS growth is just as notable, with the newest quarter up 266.7% year-over-year, and the earlier quarters showing rises of 117.6% and 514.3%. This speeding up is a main idea of growth investing, as increasing earnings often pull institutional money and push further price gains.

• Revenue Expansion and Stability: Revenue growth stays strong, with TTM revenue up 22.7% year-over-year. The most recent quarter had a 19.5% rise in sales, and future guesses point to continued health, with next-quarter sales growth expected at 32.9%. Steady revenue growth, especially when paired with earnings gains, points to scalable demand and operational effectiveness.

• Estimate Revisions and Surprises: Analyst positive outlook is clear, with next-year EPS guesses changed upward by 8.6% over the past three months. BE has also passed EPS guesses in three of the last four quarters, with an average surprise of 218.4%. Such good revisions and surprises often come before further price increases, as they show growing belief in the company’s future.

• Cash Flow and Profitability Improvements: Free cash flow per share increased by 107.7% over the past year, getting to $0.19. Even though recent quarterly profit margins have shown some changes, the overall direction in profitability and cash creation points to bettering operational effectiveness, a detail that growth investors watch closely for sustainability.

Technical Report Summary

Bloom Energy’s technical profile is very strong, getting a top rating of 10 from ChartMill. The stock is in a positive move across both short and long-term periods, with price action regularly doing better than the wider market and industry friends. It is trading near its 52-week high, with high liquidity backing its momentum. However, the setup rating of 3 points to that recent movement may offer tests for perfect entry spots, suggesting that investors could think about waiting for consolidation to better risk-reward dynamics. For a complete study, see the full technical report here.

Exploring Similar Opportunities

For investors curious about finding other stocks that meet related technical and fundamental measures, the High Growth Momentum + Trend Template screen gives an organized way to find high-potential options. This screen mixes Minervini’s strict move needs with solid growth numbers, helping to spot leaders in early-stage upward moves.

Conclusion

Bloom Energy shows a notable case of a stock that fits with both momentum-led technical plans and fundamental growth investing. Its strong upward move, backed by increasing moving averages and superior relative strength, meets the strict measures of the Minervini Trend Template. At the same time, its explosive earnings growth, revenue increase, and good analyst revisions confirm its high-growth qualifications. As with any investment, proper research and careful timing are important, especially given the present movement in its price action.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.