Is FuelCell Energy A Buy Following Its Q2 Earnings Report?


FuelCell Energy (FCEL) reported second-quarter outcomes that fell wanting Wall Street estimates. So, is FuelCell inventory purchase? Take a take a look at FuelCell’s fundamentals and the FCEL inventory chart.




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The Danbury, Conn.-based firm makes stationary hydrogen gasoline cells for business and industrial clients in addition to utilities.

The cells combine a gaseous type of hydrogen with oxygen to create electrical power with water as the one byproduct.

But the power is just as inexperienced as its inputs. Hydrogen must be stripped from different compounds, like water or pure fuel. “Gray” hydrogen accounts for a lot of the hydrogen produced within the U.S. in the present day. It comes from pure fuel and releases carbon emissions throughout manufacturing and processing.

Still, enhancements in photo voltaic and wind energy may ramp up the manufacturing of cost-efficient “green” hydrogen.

FuelCell Stock Technical Analysis

FuelCell went public again in 1992 and its inventory worth had been caught within the single digits for years. But that modified late final 12 months because the election of Joe Biden as president despatched fuel-cell shares hovering.

Investments in hydrogen gasoline cell expertise for heavy equipment, massive business automobiles, and energy vegetation have picked up within the final 12 months, additionally lifting FCEL inventory.

But shares started falling from a peak in February and, FCEL inventory continues to face resistance on the 50-day and 200-day strains following a small bump in early June.

The relative strength line, which tracks efficiency vs. the S&P 500 index, has been flat recently, whereas the inventory’s RS Rating is at 96 out of a absolute best 99.

FuelCell has an IBD Composite Rating of simply 38 out of a best-possible 99. The key score combines five other IBD stock ratings. Investors ought to deal with shares with a Composite Rating of 90 or increased.

FCEL inventory has an Accumulation/Distribution score of C+, indicating simply barely extra shopping for than promoting by institutional buyers.


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FCEL Stock Fundamentals

On June 10, FuelCell reported a shock drop in Q2 revenue and its backside line additionally fell wanting Wall Street estimates

Wall Street sees FuelCell posting a loss for this fiscal 12 months and subsequent 12 months, though income development is predicted to speed up to 47% in fiscal 2022 from 12% this 12 months.

The firm has but to ascertain a constant document of income a lot much less robust revenue development. CAN SLIM pointers emphasize earnings and gross sales development of 25% or extra.

FCEL inventory has a 36 EPS Rating. Its SMR Rating of E signifies weak gross sales development, revenue margins, and return on fairness ratios.


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Investments In Hydrogen Fuel Cells Rise

Interest in hydrogen gasoline cells has picked up because the U.S. returned to the Paris Climate Agreement and the Biden administration pushes for funding in greener power infrastructure.

Even oil majors like Chevron (CVX) and Royal Dutch Shell (RDSA) are getting in on the motion.

“I think hydrogen has huge potential going forward in transportation and power generation,” Saudi Aramco CEO Amin Nasser mentioned throughout a panel at CERAWeek by IHS Markit in March.

Unlike typical batteries, hydrogen gasoline cells do not want lengthy intervals of recharging. That’s important for energy stations, for instance, as they cannot go offline for lengthy.

Bloom Energy (BE) can also be energetic within the stationary gasoline cell market.

Others like Ballard Power (BLDP) and Plug Power (PLUG) are engaged on cellular gasoline cells to be used in buses and electrical trams.


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Is FCEL Stock A Buy?

FuelCell Energy shares should not in a purchase zone and never forming any kind of chart sample. The inventory can also be dealing with resistance on the 50-day and 200-day strains.

Bottom line: FCEL inventory shouldn’t be a purchase.

Investors can take a look at IBD Stock Lists and different IBD content to search out dozens of the best stocks to buy or watch.

Follow Gillian Rich on Twitter for power information and extra.

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