FuelCell (FCEL), Peabody (BTU) stocks gain traction on upbeat outlook

Highlights

  • FuelCell Energy, Inc. (NASDAQ: FCEL) rose 18% on an upbeat energy outlook.

  • Peabody Energy Corporation (NYSE: BTU) jumped on preliminary unaudited financial results for the September quarter. The full result is likely to come on October 28. 

  • FuelCell stock fell 18% YTD, while Peabody Energy stock rose 558% YTD.

FuelCell Energy, Inc. (NASDAQ: FCEL) stock was up 18.13%, while Peabody Energy Corporation (NYSE: BTU) stock rose 21.42% in the afternoon trading session on Monday.

The FCEL stock traded at US$8.73, and the BTU stock traded at US$19.39 at the time.

Let’s explore why these stocks jumped today.

FuelCell Energy

The stock saw high trading volume amid an upbeat energy outlook as prices climbed. On Oct 15, the stock closed at US$7.39 with a share volume of 46,304,190. 

Last week, hydrogen energy companies had seen huge interest from investors driven by high expectations in the sector. However, this week, FuelCell started the trading week with the same momentum, although there was no apparent reason for the stock's rally.

In the quarter ended July 31, 2021, the company earned a revenue of US$26.8 million, compared to US$18.7 million in the corresponding period of the previous year. In addition, the company registered losses in the July quarter this year and the year-ago quarter. 

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The net loss was US$12 million in the quarter compared to US$15.33 million in the same period in 2020. The net loss per share diluted fell to US$0.04 from US$0.07 a year ago.

The Connecticut-based company had cash and cash equivalents and restricted cash of US$494 million at the end of July 31, 2021, compared to US$192.1 million as of October 30, 2020.  

FuelCell has a market capitalization of US$3.22 billion. The stock rose around 21% in one month. Its lowest price was US$6, recorded on October 4. However, the stock fell 18% YTD.

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Trending Energy Stocks: FuelCell Energy, Inc. (NASDAQ: FCEL), Peabody Energy Corporation (NYSE: BTU).  

Source – pixabay

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Peabody Energy Corporation  

The stock soared on Monday on its preliminary unaudited financial results for Q3, 2021. The company expects revenue of US$670 million to US$690 million for the September quarter. The net loss to be around US$40 million to US$60 million attributable to the common shareholders. 

The Adjusted EBITDA would be between US$280 million and US$290 million, while its cash and cash equivalents would be US$587.0 million. It expects the retired senior secured debt to be around US$250 million year-to-date as of October 15, 2021.

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The Missouri-based company expected to report the complete results for the quarter on October 28. 

In the June quarter of 2021, its revenue was US$723.4 million, and the net loss was US$25.3 million. Peabody is engaged in coal mining in the US and Australia. It supplies coal to the power and steel industries. 

The stock closed at US$15.96 with a share volume of 5,878,893 on Oct 15, 2021. The company has a market capitalization of US$2.2 billion, and the forward P/E for one year is 8.6.

Its one-month stock return is 36%, and its YTD return is 558%.

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Bottomline

The NYSE Energy Index (NYE.ID) generated a 47.53% gain YTD and 19.97% in one month, indicating the sector’s sustained growth this year. However, clean energy generation has been the focus of the government in recent years. However, investors must analyze the risk involved before investing in stocks. 

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