Why These 3 Clean Energy Stocks Have Rebounded Strongly From 52-Week Lows This Week

What happened

This week has been a test for investors’ nerves. If you look at the charts of some alternative energy stocks, for example, you’ll see how they crashed early in the week – some even plunging to 52-week lows – only to rebound just as spectacularly even as I write this. . Believe it or not, actions of Ballard Power Systems (BLDP 9.57%), Clean energy fuels (CLNE 10.46%)and flashing charging (BLNK 14.78%) have risen more than 15% each in the past two days through 2 p.m. ET Friday, but are still down for the week according to data provided by S&P Global Market Intelligence.

  • Ballard Power Systems: decrease of 13.4%.
  • Flashing load: down 2.5%.
  • Clean energy fuels: down 5.9%.

Each of those stocks hit 52-week lows this week. Each of these companies also released their quarterly figures in the past few days, with one even smashing analysts’ estimates. That tells me that this stock, at least, could have ended the week on a much stronger note had it not been for the choppy markets.

BLDP data by YCharts

So what

Clean Energy Fuels announced its first quarter numbers late last week. Traditionally known for its vast network of gas stations, Clean Energy is now branching out to produce renewable natural gas (RNG) from organic waste – a move that has caught the eye of analysts and investors.

Analyst Pavel Molchanov from Raymond James, for example, raised the rating of Clean Energy stock to outperform with a price target of $6 per share this week, in part because of the potential reinstatement of federal tax credits that support clean energy. Clean Energy Fuels revenue increased 8% year over year to $83.5 million in the first quarter as the company shipped 3.7% more million gallons of fuel and 7, 3% more million gallons of RNG, both year over year.

Clean Energy Fuels stock, however, fell further after earnings as its numbers missed estimates on both the upper and lower lines.

Ballard Power, which makes clean-energy fuel cell products for transportation and stationary power, also saw its shares tumble after the release of first-quarter results on May 9. Ballard Power’s revenue growth of 19% again far exceeded analysts’ estimates. , and the company reported a loss of $0.14 per share compared to $0.06 per share in the first quarter of 2021.

Worse still, Ballard Power’s gross margin turned negative and its 12-month backlog at the end of the first quarter also fell slightly to $65.8 million. Shortly after the results, analyst Christopher Souther of B.Riley cut Ballard Power’s share price target to $12 per share amid concerns over challenges in China where the company operates a key joint venture with the diesel engine maker Weichai power.

A person charging an electric vehicle at a Blink charging station.

Image source: flashing load.

Blink Charging also received a few price cuts this week, but I expected the electric vehicle (EV) charging company’s shares to be even higher this week given its meteoric revenue growth. Here are some numbers from Blink Charging’s Q1 report that you might want to know (all change year over year):

  • Revenue: up 339% to $9.8 million.
  • EV charging stations contracted or sold: 99% increase to 3,174 stations.
  • Gross margin: 16.2% vs. 4% in Q1 2021.
  • Net loss: up 104% to $15.1 million.

This large number of losses was a chink in Blink Charging’s armor, but the market was expecting even worse. Overall, this is a record revenue quarter for the company. No surprise, then, that Blink Charging also turned out to be one of the best performing clean energy stocks this week.

Now what

Ballard Power is the worst performing stock this week among the three, and for good reason – the company’s order flow is slow, it’s burning cash and it expects to generate a negative gross margin in 2022 vs. a margin of 15% in 2021.

Clean Energy Fuels, meanwhile, has ambitious goals for the next five years: it expects to generate almost $285 million in profits by 2026, with RNG supply making up the bulk of it. The company, however, is just getting started on the RNG, so there’s still a long way to go.

Incidentally, the road ahead for Blink Charging won’t be a cakewalk either, but the electric vehicle industry is booming and there is potential for exponential growth. If Blink Charging can continue to grow triple-digit or even double-digit revenue, the EV stock could soon override its weakness of the past few months.

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