Clean Energy Sector Thrives Despite Challenges in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Benzinga
- Clean Energy Resilience: Despite rising interest rates and inflationary pressures, the clean energy sector thrived in 2025, with solar stocks emerging as major winners, indicating strong market demand for renewable energy.
- Clearway Energy's Strong Performance: Clearway Energy Group (NYSE:CWEN) attracted investor attention due to its diversified asset portfolio and high dividend yield, with its stock crossing above the 50-day moving average in January, demonstrating robust upward momentum.
- NextPower Buyback Announcement: NextPower announced a $350 million share buyback, prompting several analysts to raise their price targets, with UBS setting a Street-high target of $140, reflecting over 20% upside from current market prices and confidence in future growth.
- Bloom Energy's Surging Orders: Bloom Energy's fuel cell systems have become critical in the AI data center buildout, with a backlog exceeding $20 billion, and management raised 2026 guidance to $3.3 billion following its Q4 2025 report, showcasing strong market demand.
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Analyst Views on BE
Wall Street analysts forecast BE stock price to fall
18 Analyst Rating
9 Buy
8 Hold
1 Sell
Moderate Buy
Current: 139.030
Low
39.00
Averages
121.59
High
160.00
Current: 139.030
Low
39.00
Averages
121.59
High
160.00
About BE
Bloom Energy Corporation is engaged in stationary fuel cell power generation by market share. The Company provides distributed energy technology solutions to customers. The Company manufactures advanced and versatile fuel cell energy platforms, supporting the commercial availability of two products: the Bloom Energy Server for generating electricity and the Bloom Electrolyzer for producing hydrogen. With approximately 1.4 gigawatts (GW) of Energy Server systems deployed in more than 1,000 locations and nine countries. Its solid oxide fuel cell technology platform is the foundation for its Energy Server system and Bloom Electrolyzer. The Bloom Energy Server system is designed to deliver reliable, resilient, clean and affordable energy for utilities and organizations alike. Its Energy Server system is designed to deliver reliable electricity. The Bloom Electrolyzer is designed to provide hydrogen solutions based on the same solid oxide platform as its Energy Server systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- American Electric Power Earnings: American Electric Power reported adjusted earnings of $1.19 per share for Q4, exceeding the market expectation of $1.15, with revenue of $5.31 billion, showcasing effective execution under new management and growth potential.
- Entergy's Outlook: Entergy's adjusted earnings came in at 51 cents per share for Q4, slightly below expectations, yet its 2026 guidance indicates robust growth prospects with an 8% CAGR for retail sales, reflecting a conservative approach to new projects.
- Analyst Ratings Optimistic: Analysts are generally bullish on both American Electric Power and Entergy, with 10 out of 24 analysts rating AEP as buy or strong buy, and 19 out of 25 analysts giving similar ratings to Entergy, reflecting strong confidence in utility stocks.
See More
Clean Energy Sector Thrives Despite Challenges in 2025
- Clean Energy Resilience: Despite rising interest rates and inflationary pressures, the clean energy sector thrived in 2025, with solar stocks emerging as major winners, indicating strong market demand for renewable energy.
- Clearway Energy's Strong Performance: Clearway Energy Group (NYSE:CWEN) attracted investor attention due to its diversified asset portfolio and high dividend yield, with its stock crossing above the 50-day moving average in January, demonstrating robust upward momentum.
- NextPower Buyback Announcement: NextPower announced a $350 million share buyback, prompting several analysts to raise their price targets, with UBS setting a Street-high target of $140, reflecting over 20% upside from current market prices and confidence in future growth.
- Bloom Energy's Surging Orders: Bloom Energy's fuel cell systems have become critical in the AI data center buildout, with a backlog exceeding $20 billion, and management raised 2026 guidance to $3.3 billion following its Q4 2025 report, showcasing strong market demand.
See More
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See More
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- Strategic Partnership Driving Growth: The $5 billion strategic partnership with Brookfield Asset Management enables Bloom to offer energy-as-a-service across Brookfield's trillion-dollar infrastructure portfolio, driving its product backlog to $6 billion, reflecting strong market demand.
- Production Capacity Expansion: Bloom Energy plans to double its production capacity from 1 GW to 2 GW by the end of 2026, and successfully delivered products to Oracle in just 55 days, far exceeding its 90-day promise, further solidifying its market position.
- Future Earnings Outlook: Despite Bloom Energy's high valuation, analysts project its EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong growth potential in the coming years.
See More
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- Backlog Growth: Bloom Energy's product backlog surged by 60% in Q4 to $6 billion, bringing total backlog to $20 billion, indicating a robust market position amid soaring energy demands from data centers.
- Strategic Partnership: The $5 billion partnership with Brookfield Asset Management enables Bloom to provide energy services across its trillion-dollar infrastructure portfolio, further solidifying its leadership in the energy market.
- Capacity Expansion: Bloom plans to double its production capacity from 1 GW to 2 GW by the end of 2026, raising its 2026 revenue guidance from $3.1 billion to $3.3 billion, reflecting strong confidence in future growth.
- Optimistic Market Outlook: Despite a high P/E ratio of 107, analysts project EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong electricity demand growth in the coming years.
See More
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- Utilities Sector Performance: The utilities sector in the S&P 500 has shown remarkable performance in 2026, rising over 2% on Friday, marking its longest winning streak since July 2024, indicating strong market confidence.
- American Electric Power Earnings: American Electric Power reported adjusted earnings of $1.19 per share for Q4, exceeding the market expectation of $1.15, with revenue of $5.31 billion, showcasing effective execution under new management and growth potential.
- Entergy's Outlook: Entergy's adjusted earnings came in at 51 cents per share for Q4, slightly below expectations, yet its 2026 guidance indicates robust growth prospects with an 8% CAGR for retail sales, reflecting a conservative approach to new projects.
- Analyst Ratings Optimistic: Analysts are generally bullish on both American Electric Power and Entergy, with 10 out of 24 analysts rating AEP as buy or strong buy, and 19 out of 25 analysts giving similar ratings to Entergy, reflecting strong confidence in utility stocks.
See More
Clean Energy Sector Thrives Despite Challenges in 2025
- Clean Energy Resilience: Despite rising interest rates and inflationary pressures, the clean energy sector thrived in 2025, with solar stocks emerging as major winners, indicating strong market demand for renewable energy.
- Clearway Energy's Strong Performance: Clearway Energy Group (NYSE:CWEN) attracted investor attention due to its diversified asset portfolio and high dividend yield, with its stock crossing above the 50-day moving average in January, demonstrating robust upward momentum.
- NextPower Buyback Announcement: NextPower announced a $350 million share buyback, prompting several analysts to raise their price targets, with UBS setting a Street-high target of $140, reflecting over 20% upside from current market prices and confidence in future growth.
- Bloom Energy's Surging Orders: Bloom Energy's fuel cell systems have become critical in the AI data center buildout, with a backlog exceeding $20 billion, and management raised 2026 guidance to $3.3 billion following its Q4 2025 report, showcasing strong market demand.
See More
Russell 2000 ETF Poised for Strong Returns in 2026
- Strong Small-Cap Performance: The Russell 2000 index has achieved an 8% return in 2026, significantly outperforming the S&P 500's 1.4%, indicating robust small-cap performance in the current economic climate and attracting investor interest.
- Diversified Portfolio: The Vanguard Russell 2000 ETF's top ten holdings account for only 5% of its weight, ensuring that its performance is not heavily influenced by a small group of stocks, thus achieving stable returns through broad portfolio contributions.
- Favorable Rate Policies: The Federal Reserve has cut interest rates six times since September 2024, with two more cuts expected in 2026, directly boosting profitability for about 32% of Russell 2000 companies, enhancing their long-term growth potential.
- Attractive Valuation: With a price-to-earnings ratio of 20.4, the Russell 2000 trades at a 19% discount to the S&P 500's 25.2, providing an attractive opportunity for investors and potentially driving continued strong performance in 2026.
See More
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- Strong Returns: The Russell 2000 index has surged 8% in 2026 so far, significantly outperforming the S&P 500's 1.4%, indicating robust performance from small-cap companies and attracting investor interest.
- ETF Performance: The Vanguard Russell 2000 ETF (VTWO), which tracks the index, is also expected to benefit from this strong performance, with momentum likely to persist throughout 2026, further boosting investor confidence.
- Sector Distribution: Companies in the Russell 2000 span 11 different sectors, with healthcare comprising 18.8%, showcasing the diversity of its portfolio, especially compared to the S&P 500 where tech dominates at 32.9%.
- Monetary Policy Impact: The Federal Reserve has cut interest rates six times since September 2024, with two more cuts predicted in 2026, directly enhancing profitability for about 32% of Russell 2000 companies and driving future growth.
See More
Bloom Energy Stock Soars 497%: Opportunities Ahead
- Surging Market Demand: Bloom Energy's stock has surged 497% over the past year, primarily due to significant deals with hyperscalers and utility providers, showcasing its robust capability to meet the growing energy needs of data centers.
- Strategic Partnership Driving Growth: The $5 billion strategic partnership with Brookfield Asset Management enables Bloom to offer energy-as-a-service across Brookfield's trillion-dollar infrastructure portfolio, driving its product backlog to $6 billion, reflecting strong market demand.
- Production Capacity Expansion: Bloom Energy plans to double its production capacity from 1 GW to 2 GW by the end of 2026, and successfully delivered products to Oracle in just 55 days, far exceeding its 90-day promise, further solidifying its market position.
- Future Earnings Outlook: Despite Bloom Energy's high valuation, analysts project its EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong growth potential in the coming years.
See More
Bloom Energy Stock Soars on Surge in Demand
- Backlog Growth: Bloom Energy's product backlog surged by 60% in Q4 to $6 billion, bringing total backlog to $20 billion, indicating a robust market position amid soaring energy demands from data centers.
- Strategic Partnership: The $5 billion partnership with Brookfield Asset Management enables Bloom to provide energy services across its trillion-dollar infrastructure portfolio, further solidifying its leadership in the energy market.
- Capacity Expansion: Bloom plans to double its production capacity from 1 GW to 2 GW by the end of 2026, raising its 2026 revenue guidance from $3.1 billion to $3.3 billion, reflecting strong confidence in future growth.
- Optimistic Market Outlook: Despite a high P/E ratio of 107, analysts project EPS to reach $2.92 in 2027 and $4.58 in 2028, indicating that the company will continue to benefit from strong electricity demand growth in the coming years.
See More
