Bloom Energy Corp. (NYSE:BE) Emerges as a Top Pick for Growth and Momentum Strategies

Bloom Energy Corp. - Class A (NYSE:BE) has become a significant option for investors using systematic growth and momentum strategies. The stock was found through a screening process that joins Mark Minervini's Trend Template with a High Growth Momentum (HGM) rating, a method made to find equities displaying both strong technical uptrends and solid fundamental growth traits. This two-part method aims to find market leaders early in their growth path by confirming they are in a definite stage 2 uptrend while also showing improving business fundamentals.

Technical Strength and the Trend Template

The Minervini Trend Template offers a detailed technical structure to find stocks in a lasting uptrend. Bloom Energy meets all its main requirements, indicating a strong technical position.

• Price Above Key Moving Averages: The current price of $110.38 trades well above the rising 50-day ($75.21), 150-day ($40.63), and 200-day ($36.49) simple moving averages. This arrangement confirms positive momentum across short, intermediate, and long-term periods.
• Moving Average Alignment: The 50-day MA is positioned above both the 150-day and 200-day MAs, and the 150-day MA is above the 200-day MA. This ordered stacking of faster averages above slower ones is a standard trait of a solid stage 2 advance.
• Proximity to Highs: The stock is trading within 25% of its 52-week high of $125.75, showing it keeps strong momentum and is not yet overstretched. Also, its price is a notable 1,066% above its 52-week low of $9.46, showing a strong recovery and trend.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of 99.63, Bloom Energy is performing better than almost all other stocks in the market. Minervini points out that leaders in a bull market regularly display high relative strength, as it shows institutional buying and market leadership.

This technical setup is important because it methodically removes stocks in consolidation or falling stages, concentrating only on those with confirmed, strong uptrends. Following this template helps investors steer clear of the typical mistake of "picking bottoms" and instead places them in assets that are already being bought.

Fundamental Drivers for High Growth

Besides its technical strength, Bloom Energy displays the type of fast fundamental growth that High Growth Momentum strategies look for. The HGM rating assesses earnings and sales improvement, and the company's recent results are impressive.

• Earnings Per Share (EPS) Acceleration:

  • The most recent quarter had EPS growth of 267% compared to the same quarter last year.
  • This comes after earlier quarterly growth rates of 118% and 514%, showing a strong and continued improvement in profitability.
  • Analysts are paying attention, with EPS estimates for the next year being increased by more than 10% in the last three months.

• Sales Growth and Momentum:

  • Revenue growth remains solid, with the last quarter reporting close to 20% year-over-year growth.
  • The company has a good record of surpassing revenue forecasts, beating estimates in three of the last four quarters.

This fundamental performance is the force that pushes the technical breakout. Minervini's strategy states that "big earnings attract big attention." The major gains in sales and earnings, along with positive earnings surprises and estimate increases, are exactly the triggers that draw institutional investors and support continued price gains.

Technical Health Overview

The detailed technical report for Bloom Energy gives the stock a top rating of 10 out of 10. This score shows its steady better performance across both short and long-term periods compared to the wider market. The report mentions that the stock is trading in the higher part of its 52-week range and is a top performer in the Electrical Equipment industry. While the long and short-term trends are clearly positive, the analysis indicates that the recent price action has been unstable, leading to a lower setup quality rating. This means that while the stock is technically healthy, investors might gain from waiting for a time of stability to find a better, lower-risk entry point. A full breakdown of the technical analysis can be found here.

Conclusion

Bloom Energy Corp. offers a strong case for investors using a structured growth and momentum strategy. It successfully meets the strict technical filters of the Minervini Trend Template, confirming its place in a solid stage 2 uptrend. At the same time, its fast EPS growth, good revenue gains, and positive analyst estimate increases meet the main needs for high-growth momentum investing. The mix of a strong technical trend supported by solid fundamental catalysts forms a profile that matches the ideas of focusing on new market leaders.

For investors looking for other options that fit this strict mix of technical and fundamental strength, the screening method that found BE can be used to find more candidates. You can find more potential high-growth momentum stocks by exploring this screen.

Disclaimer: This is not financial advice. The content is intended for informational and educational purposes only. It is crucial to conduct your own research and consider your financial situation and risk tolerance before making any investment decisions.