Will Bloom Energy (NYSE:BE) stock bloom in 2024 after a lackluster 2023? If you like to find hidden gems in the market, you’ll definitely want to check out Bloom Energy. A small investment in this company can add an environmental, social and governance angle to your portfolio. Along with that, Bloom Energy’s patient shareholders should enjoy substantial returns in the long run.
Just to recap, Bloom Energy is based in California and the company manufactures a solid oxide platform that can produce electricity and hydrogen. In time, Bloom Energy stock could rally as billions of dollars flow into the U.S. economy through the Inflation Reduction Act. So, let’s consider what makes Bloom Energy a standout among investable ESG businesses.
BE Stock: Today’s Laggard Could Be Tomorrow’s Leader
In 2023, the market was obsessed with the high-flying “Magnificent Seven” and overlooked Bloom Energy. Consequently, Bloom Energy stock ended the year at a loss.
That’s why BE stock could be a hidden gem in 2024, especially with the EPA continuing to reward clean-energy initiatives. Truly, Bloom Energy’s proprietary hydrogen-fuel technology has the potential to revolutionize the green-energy movement in America and abroad.
For instance, in Bloom Energy’s home state of California, the company is collaborating with Southern California Gas (OTCMKTS:SOCGP) to power a “portion of Caltech’s grid with an innovative hydrogen project.”
Together, the two companies will work to “create microgrids that deliver resilient power” to “businesses, campuses and communities.
Looking beyond U.S. borders, Bloom Energy is working with a subsidiary of South Korean conglomerate SK Group to demonstrate the deployment of green hydrogen in South Korea.
In addition, Bloom Energy has an energy contract with the SK Group subsidiary that’s anticipated to generate around “$1.5 billion in product revenue and $3 billion of service revenue over 20 years for Bloom Energy.”
Is Bloom Energy Profitable? The Answer Is Maybe
As businesses, campuses and governments seek to produce clean, hydrogen-based fuel, Bloom Energy is happy to serve a broad variety of clients. This leads us to a crucial question, though: Is Bloom Energy a financially viable business? And more specifically, is the company profitable?
The answer depends on how you choose to measure profitability. In 2023’s third quarter, Bloom Energy reported a GAAP-measured earnings loss of 80 cents per share. That’s significantly worse than the loss of 30 cents per share that Bloom Energy incurred in the year-earlier quarter.
On the other hand, using non-GAAP measurements, Bloom Energy actually posted earnings (not a loss) of 15 cents per share in Q3 2023. Measured this way, Bloom Energy certainly showed improvement over the loss of 20 cents per share in 2022’s third quarter.
Perhaps investors shouldn’t obsess too much over whether Bloom Energy is profitable right now. Whether we use GAAP measurements or not, Bloom Energy’s revenue increased quarter-over-quarter and year-over-year in Q3 2023. So, that’s a good sign.
The company ended 2023’s third quarter with $557.384 million worth of cash and cash equivalents, as opposed to $348.498 million at the end of 2022. Bloom Energy appears to be in a decent and improving capital position.
Power Up Your Portfolio With Bloom Energy Stock
2024 could be the year when the market discovers Bloom Energy’s growth potential. Bloom Energy stock deserves to be much higher, especially as the company has value-added partnerships on more than one continent.
Therefore, don’t be afraid to invest in Bloom Energy just because the market ignored the company in 2023. The new year brings new possibilities, and you can get immediate exposure to the coming hydrogen-industry boom with BE stock.
On the date of publication, David Moadel 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.
