Why Is FuelCell Stock Rallying?

Why Is FuelCell Stock Rallying?

UKRAINE - 2021/08/07: In this photo illustration a FuelCell Energy logo is seen on a smartphone ... [+] screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

FuelCell Energy stock, a company that designs, manufactures, and operates fuel cell power plants that work on natural gas or biogas, rallied by almost 19% in Tuesday’s trading. The stock also remains up by close to 14% over the past month (about 21 trading days), compared to the S&P 500, which declined by about 2%. So what’s driving the recent gains? The broader hydrogen and fuel cell sector appears to be rallying following strong quarterly results and guidance from Bloom Energy, published late last week. For perspective, Bloom’s revenue grew 37% year-over-year in Q4 and the company now expects revenue to grow at an annualized rate of 30% to 35%, a solid 500 basis point increase from its previous long-term outlook. Moreover, hydrogen stocks saw a big sell-off over the first two weeks of this year as investors rotated out of futuristic stocks, and it’s possible that investors are now buying the dip.