We recently compiled a list of the Why These 15 Stocks Are Skyrocketing in 2025. In this article, we are going to take a look at where Bloom Energy Corporation (NYSE:BE) stands against the other stocks.
Stock gains always get people talking, and 2025 is no exception. Markets have moved higher for a while due to a shift toward tech innovation. The pace might slow after two years of significant returns, but investors have regained their confidence after the Stargate project was announced.
Small and mid-sized companies have started to pick up pace recently and are landing on investors’ radars as mega-cap stocks are now trading at nosebleed valuations. These companies have higher growth potential than their mega-cap rivals, and that explains the sudden surge of interest.
Smaller and mid-tier stocks did face challenges in prior years when corrections and interest rate hikes weighed on market sentiment. However, now that inflation seems more contained and Trump pushes for more rate cuts, things look even better for these mid-sized stocks.
Methodology
For this article, I screened the top-performing stocks year-to-date in the $5 billion to $20 billion market capitalization bracket. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
A bird’s eye view of a power generation platform with a power plant in the background.
Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders In Q3 2024: 25
Bloom Energy (NYSE:BE) is a renewable energy company that provides solid oxide fuel cell systems. It can run on various fuels, and its customers include data center companies.
BE stock is up significantly year-to-date due to a major deal with American Electric Power for 1 gigawatt of Bloom’s fuel cell products. The first order includes 100 megawatts for AI data centers. More orders will likely follow in 2025.
Analysts have also raised price targets due to the growth opportunity here, especially when it comes to data centers and cloud computing. Bloom also has a collaboration with SK Ecoplant in South Korea that could fuel more growth due to its focus on large-scale fuel cell deployments.
The company is still unprofitable, but there have been solid margin improvements here. COGS has been reduced, and the gross margin has increased.
Analysts have a consensus price target of $24.5, implying 16.6% downside risk. That said, price targets are likely to be raised more.
BE stock is up 25.6% year-to-date.
Overall BE ranks 13th on our list of the stocks that are skyrocketing in 2025. While we acknowledge the potential of BE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Smid-Cap Stocks So Far In 2025
Disclosure: None. This article was originally published at Insider Monkey.
