Bloom Energy Corporation

Bloom Energy Corporation (NYSE: BE) is a provider of commercially viable solid oxide fuel- cell based power generation platform that provides power to businesses, essential services, critical infrastructure, and communities. The Company's technology primarily produces electricity and hydrogen.

­­­­­Recent Q1FY23 Financial result analysis:

In Q1FY23, the company achieved a record revenue of USD 275.3 million, which is a 36.9% increase from the same period in the previous year. This growth was mainly due to a 38.9% rise in Product and Service revenue. The strong revenue growth supported an improvement in the operating margin by over 5%. The Gross Margin for Q1FY23 was 19.7%, which is a significant improvement from 13.9% in Q1FY22. The company's operating losses decreased to USD 63.7 million in Q1FY23 compared to USD 66.7 million in the same period of the previous year. The Loss Per Share also decreased to 0.35 in Q1FY23 compared to USD 0.44 in Q1FY22. The company has maintained its price while reducing its product costs, leading to improved margins. The company is performing well and achieving its previous guidance, reporting a record first-quarter revenue driven by strong domestic acceptance. The company has also reaffirmed its full-year 2023 guidance for revenue and profitability.

Technical Observation (on the daily chart)

With a past year return of almost 6.52%, the price has consolidated over the last year, with the medium-term downward trend evident by 40.16% correction in previous six months. The price has corrected by 24.32% since the Q1FY23 financial results announcement even with decent results. Also, the momentum indicator RSI (14 period) displays an oversold value of 22.30, indicating some consolidation or short-term reversal to USD 15.00-USD 16.00. Price is below the 21-day SMA and 50-day SMA trend-following indicators, which can serve as dynamic short-term resistances respectively.

As per the above-mentioned price action, momentum in the stock over the month, Q1FY23 above expectations top-line results and technical indicators analysis, a ‘Speculative Buy’ rating has been given Bloom Corporation at the current price of USD 12.57, as on May 11, 2023, at 09:10 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is May 11, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.