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It's been an incredible two years for shareholders of Bloom Energy (NYSE:BE). The fuel cell maker's stock jumped about 291% in 2025, moving from about $22 to about $87. And it's more than doubled again this year, up about 139% in 2026 to roughly $208 as of this writing.
The ride hasn't been smooth, though. The stock's record close was on June 22, at $345.85, and shares are still about 40% below that mark. It's also fallen 40% or more three different times in a little over a year.
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I think Bloom stock is still worth buying at today's price -- but not all at once.
Bloom sells fuel cell systems that produce electricity on site, and data centers built for artificial intelligence (AI) have driven much of its recent growth.
Last year, the stock got far ahead of that growth. Bloom's 2025 revenue rose 37% to around $2 billion, and its non-GAAP (adjusted) earnings per share went from $0.28 in 2024 to $0.76. These are strong numbers.
But the stock almost quadrupled. Using each year's adjusted earnings, Bloom's price-to-earnings ratio went from around 79 at the end of 2024 to about 114 at the end of 2025.
This year, the company has closed much of that gap. Bloom's third-quarter revenue grew 138% year over year to around $1.24 billion. Its adjusted operating margin widened to 23% from 9% in the year-ago quarter. And adjusted earnings per share jumped to $0.94 from $0.15.
Over the past four reported quarters, Bloom has made $2.61 a share on an adjusted basis. Management expects $3.10 to $3.40 for 2026, with revenue of $4.4 billion to $4.6 billion -- up around 122% at the midpoint.
Put another way, the two-year rally has been backed by profits. Shares have climbed more than ninefold since the end of 2024, and adjusted earnings per share over the past four quarters is up about ninefold, too.
At roughly $208, a share of Bloom costs about 80 times its adjusted earnings over those four quarters, near where the price-to-earnings ratio was two years ago. Using expected earnings for next year, it costs about 39 times earnings.
Sure, that's still a premium price. But it's no pricier than it was two years ago, even after the stock's huge rise.
The stock's swings are another matter. Shares fell 46% from Nov. 3, 2025, to Dec. 17. They dropped 53% from the June record to July 29.
And between Oct. 6 and Nov. 5, they slid another 43%.
The company has a weakness of its own, too. Operating cash flow flipped from an inflow of $226 million in the second quarter to an outflow of $27 million in the third. Contract assets (sales Bloom had booked but couldn't bill customers for yet) climbed by around $430 million over the third quarter alone.
If this cash shortfall lasts, a stock priced at a premium might arguably take another steep fall.
These swings make the timing of any one purchase matter a lot. Someone who bought Bloom on the first trading day of 2026 has more than doubled their money. Someone who bought at the June record close is down around 40%.
Buying in pieces would have landed in between. Investing the same dollar amount on the first trading day of every month this year, from January through November, would have built a position at an average cost of around $188 a share. This approach is called dollar-cost averaging.
At the current price, that position would be up around 11%. It's much less than the January buyer's gain. But it didn't require guessing which month was the right one.
So, I'd keep buying Bloom stock, a little at a time. The business has grown into a valuation that looked stretched a year ago, and at around 39 times the earnings forecast for 2027, the price looks fair to me for a company still growing this fast.
But a stock that has fallen 40% or more three times in a little over a year might do it again. Spreading purchases over several months means a fourth drop would cut the average price paid rather than hit one big buy. Of course, this approach gives up some gains if the stock keeps rising without a break.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.
Bloom Energy Stock Has More Than Doubled for 2 Years Running. I'd Keep Buying It Bit by Bit. was originally published by The Motley Fool
