Here's Why Eos Energy Stock Soared Over 100% in 5 Weeks

Have you heard of Eos Energy Enterprises (NASDAQ: EOSE)? If not, buckle up.

Shares of Eos Energy jumped 65.1% in September, according to data provided by S&P Global Market Intelligence, and they keep going higher and higher. As of this writing, Eos Energy stock is up a whopping 104% since Sept. 1.

One partnership and multiple analyst price upgrades have catapulted this unknown stock to new heights.

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More analysts are turning bullish on Eos Energy stock

Eos Energy designs and manufactures battery energy storage systems (BESS). However, instead of lithium-ion batteries, it is developing zinc battery systems that are fully recyclable, nonflammable, and a scalable alternative for use in utilities, commercial, and industrial sectors.

Eos Energy started commercial production at its first manufacturing line at its Turtle Creek facility in Pennsylvania in early 2024. The company has steadily increased production and revenue but flew under the radar until last month, when some analysts raised their price targets on the stock.

Guggenheim analyst Joseph Osha raised Eos Energy stock's price target from $6 per share to $10 a share in early September when the stock was trading below $8. Days later, Stifel analyst Stephen Gengaro also lifted the stock's price target to $10 from $8 a share. The bullish sentiment among analysts largely reflects their meetings and discussions with Eos Energy management and the company's latest quarterly results.

Eos Energy expects 10x growth in revenue

Eos Energy started its first manufacturing line in mid-2024 at its plant in Turtle Creek, Pennsylvania, to produce its Z3 batteries at scale. The company is now implementing subassembly automation to more than double throughput of the line. Overall, it expects to ramp production to 2 gigawatt-hours (GWh) by the fourth quarter of 2025 from its current capacity of around 1.25 GWh.

Eos Energy is guiding for $150 million to $190 million in revenue for 2025. That's over 10x growth from last year. It ended Q2 with a backlog of $672.5 million, representing roughly 2.6 GWh of capacity.

Eos Energy launched a battery management system and software platform called DawnOS in September and signed a multiyear partnership with Unico in October. The two companies first signed an agreement in April, under which Unico will provide Eos Energy with converters integrated with its Z3 batteries over the next five years.

Time to load up on Eos Energy stock?

Eos Energy is betting big on a secular shift in power demand from artificial intelligence (AI) data centers. Eos reportedly added $3.2 billion to its pipeline in Q2, taking its total to $18.8 billion. Those are not confirmed orders, but represent the revenue potential for the company. Importantly, nearly 20% of that pipeline is connected with data centers.

Eos Energy carries a high long-term debt of nearly $445 million, but a recent debt restructuring could save it nearly $400 million in interest expenses. Meanwhile, Eos Energy has also raised funds in recent months via issue of stock and $91 million in funding from the U.S. Department of Energy (DOE) to expand production.

Eos Energy appears to be an interesting energy storage stock to watch out for. Just keep in mind that it is still a young, loss-making company and could issue more shares or borrow money to fund its growth. The stock is already up 200% so far in 2025 and commanding a market cap of over $4 billion.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.