BE Stock Slips Overnight: Bloom Energy’s Valuation In Focus Ahead Of Q3 Earnings

Bloom Energy's forward price-to-earnings ratio exceeds its peers, at 63.5x as per Koyfin data.

• The fuel cell manufacturer’s last 12 months price-to-earnings multiple is 255x, while peers Cummins and GE Vernova have comparable P/E multiples of 26.7x and 26x, respectively. 
• BE is expected to post its third-quarter results later this week.
• As investors gear up for the print, retail sentiment around the stock slipped from ‘bullish’ to ‘neutral’ over 24 hours. 

Shares of Bloom Energy Corp. (BE) slipped more than 2% in overnight trading late on Monday ahead of its much-awaited third-quarter (Q3) earnings results, expected later this week. 

As retail investors gear up for the print, some have flagged the company's ballooning valuation. Meanwhile, retail sentiment around the stock slipped from ‘bullish’ to ‘neutral’ over 24 hours. 

Bloom Energy’s P/E Multiple Is Heavy Compared To Peers

The fuel cell manufacturer’s last 12 months price-to-earnings multiple is 255x, according to Koyfin data. Meanwhile, peers Cummins Inc. (CMI) and GE Vernova (GEV) have comparable P/E multiples of 26.7x and 26x, respectively. 

Bloom's forward P/E ratio also exceeds its peers, at 63.5x as per Koyfin data. Meanwhile, the forward P/E for CMI and GEV is 15.9x and 43.2x, respectively. 

One Stocktwits user said, “$BE think that PE is catching up to us.” They added that the upcoming earnings need to be “dynamite” to justify prices. 

Another user said, “$BE As the whole "ai story" is coming apart, shouldn't this be back to about 65 by now.   The concept of this to power exaggerated ai plans was farcical in any case.”

What’s BE Likely To Post In Q3?

Analysts expect third-quarter revenue to rise about 104% to $1.06 billion from $519.05 million in the previous year’s comparable period. Meanwhile, adjusted earnings per share are expected to increase to $0.70 from $0.15. 

The company has also raised its full year revenue guidance to $3.9 billion to 4.2 billion, representing 100% growth year-over-year at the midpoint. 

BE’s Growing Backlog And Projects

Meanwhile, Bloom Energy reported a strong backlog of about $20 billion as of February. The company has announced multiple significant deals. 

Earlier this year, Oracle (ORCL) and Bloom Energy announced a strategic partnership to deploy up to 2.8 gigawatts (GW) of modular solid oxide fuel cell capacity to power the hyperscaler’s AI and cloud computing data centers in the U.S.

Last week, Oracle announced a new energy service agreement with El Paso Electric for Project Jupiter, AI data center campus in New Mexico, and reaffirmed that Bloom Energy will remain its primary power source.

On Monday, Oracle also said in a post on X that construction on the Project Jupiter data center campus was “moving quickly, with strong progress on site.” 

Wall Street’s Stance On BE Stock

Data from Koyfin shows that 29 analysts covering the stock have a 12-month average price target of $285.43 on BE, implying an upside of about 26% from its last close. 

Of them, 15 have a ‘Buy’ or higher rating on the company’s shares, while 12 have a ‘Hold’ rating and two rate it a ‘Sell’ or lower. 

BE Stock: Retail Stance

BE stock plunged more than 21% last week amid a wider selloff in AI and related names. 

However, some retail investors believe the stock will bounce back after its Q3 results. 

One user said, “$BE know this stock well. They’ll zigzag it all the way before sending it higher. Patience is required here.”

Another user said, “$BE this will go $1000+.”

BE stock closed at $226.22 on Monday. 

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