Why BE Is the One Energy Stock You Should Get Your Hands On ASAP

Stocks to buy

Bloom Energy (NYSE:BE) excels in the world of hydrogen technology. They produce solid oxide fuel cells that generate electricity from both grey and green sources (hydrogen derived from natural gas and water/electrolysis). Their systems offer reliable, emissions-reducing power, especially vital for institutions needing uninterrupted supply. Also, they operate off-grid for added reliability.

Notably, Bloom specializes in large-scale fuel cells for stable power generation and water-splitting electrolyzers. In addition, the company focuses on standby hydrogen power, distinguishing Bloom from rivals like Plug Power (NASDAQ:PLUG). And, although profitability remains a concern, Bloom Energy has demonstrated revenue and earnings growth in recent quarters.

Let’s talk about this energy stock, a must-have in your portfolio.

BE’s Series 10

In July, Bloom Energy introduced Series 10, a 10MW fuel cell system with a five-year, flat-rate contract delivered in just 50 days. It offers a flexible solution for meeting power needs and achieving net-zero goals at competitive costs without long-term commitments or cost concerns.

CEO of Bloom Energy KR Sridhar highlighted the company’s innovation in distributed clean power generation and its disruptive approach to the industry’s buying model. The Series 10 offering addresses challenges related to net-zero transition by providing rapid, affordable clean power with flexibility and no long-term commitments. This responds to the need for increased power capacity without being tied to extended contracts.

Fuel Cell Installment in Taiwan

In August, Bloom Energy installed a 10-megawatt solid oxide fuel cell at Unimicron Technology Corporation in Taiwan. The installation, completed within five months of the order, highlights BE’s rapid power solution delivery. BE’s technology safeguards facilities from outages and grid disruptions, empowering customers to secure a significant portion of their electricity costs.

Also, the company achieved its first deployment of a 600-kilowatt Energy Server in Taiwan at the Unimicron plant. BE already has a strong presence in Asia, as well as deployments in three other Asian countries.

Additionally, it’s installing two bigger Bloom fuel cell systems at other Unimicron facilities. The growing demand for clean energy and carbon emission reduction, especially in the Asia-Pacific fuel cell market, suggests further installations in this region.

Q3 Results on November 8

Bloom Energy disclosed it will be reporting Q3 2023 financial results on November 8 after markets close. A conference call is scheduled for 2:00 p.m. PT / 5:00 p.m. ET on the same day to discuss these results.

In fact, analysts have high expectations for BE’s Q3 earnings report. With Bloom Energy’s focus on solid-oxide hydrogen fuel cells, this presents potential for investors in a sizable market. If the company maintains its revenue growth rate of 23.8%, as seen recently, it could be an opportunity. Yet, the lack of consistent profitability makes it potentially risky investment, although long-term growth investors might find it appealing.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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