FLNC Should I Buy
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Fluence Energy Inc (FLNC) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is currently oversold, has strong growth potential driven by data center demand, and has a record backlog supporting future revenue. Despite short-term challenges like compressed margins, the long-term outlook remains positive.
The stock is currently oversold with an RSI of 18.235, indicating a potential rebound. The MACD histogram is negative (-1.571) but contracting, suggesting a possible trend reversal. Key support is at $18.364, close to the current price of $17.40, which could act as a floor. However, the stock is trading below its pivot point of $24.664, indicating a bearish trend in the short term.
Analysts have upgraded the stock, with Jefferies recently moving it to a Buy rating and a price target of $24, citing demand recovery and backlog-supported growth.
The company's backlog has reached a record $5.5 billion, providing strong revenue visibility into FY
Fluence is well-positioned to benefit from the growing AI data center market, with 36 GWh of projects in development.
Revenue grew 154.42% YoY in Q1 2026, reflecting strong demand.
Hedge funds are selling the stock, with a 7178.18% increase in selling activity last quarter.
Gross margin dropped significantly by 58.74% YoY, indicating profitability challenges.
The stock has a 60% chance of declining by 1.2% in the next week, based on historical patterns.
Mizuho recently lowered its price target to $13, citing higher-than-expected cash burn.
In Q1 2026, Fluence Energy's revenue increased by 154.42% YoY to $475.23 million, showcasing strong growth. However, the company remains unprofitable, with a net income of -$45.07 million, though this improved by 8.69% YoY. EPS also improved to -0.34, up 6.25% YoY. Gross margin dropped to 4.06%, down 58.74% YoY, highlighting margin compression.
Analysts are mixed but leaning positive. Jefferies upgraded the stock to Buy with a $24 price target, citing demand recovery and backlog growth. Goldman Sachs has a $30 price target with a Buy rating, while Mizuho remains bearish with an Underperform rating and a $13 price target. The consensus reflects optimism about long-term growth despite short-term challenges.
