2 Reasons Bloom Energy Is a Once-in-a-Decade Stock Pick for Long-Term Investors

When a stock surges 1,414% in just a year, investors who didn't get in the game early rightfully wonder if they've missed "the easy money" and just how much gas is left in the stock's tank.

On those fronts, immediate clarity is often hard to come by. Still, late-arriving market participants can tilt the odds of success in their favor by cozying up to companies with durable long-term prospects.

That group includes Bloom Energy (NYSE: BE), an industrial stock that has in fact surged 1,414% over the past year. A staggering 112% of that gain was accrued just last month, making Bloom the best-performing large-cap stock of any stripe in April.

Bloom Energy is already a story stock and it has the potential to retain that status. Image source: Getty Images.

With accolades like these, it's not a stretch to assume an efficient market would have priced in all the known positives about Bloom and that the burden will be on this growth stock going forward. The burden of proof part is accurate, but there are tailwinds in place that may indicate Bloom's best days are still ahead of it.

1. Bloom offers peace of mind

At its core, Bloom is a provider of alternative power to data centers, and that's a great place to be at a time when artificial intelligence (AI) is sending data center demand through the roof. More directly, Bloom manufacturers solid oxide fuel cell systems for on-site power transmission, meaning Bloom has the goods to support a data center's power needs much more quickly than a traditional electric utility.

Bloom's position in the on-site data center power niche has driven revenue growth over the past five years at a compound annual growth rate of 19.1%. There are signs of acceleration. When the company delivered first-quarter results in late April, it lifted its 2026 sales guidance to $3.4 billion to $3.8 billion from $3.1 billion to $3.3 billion.

Compounding that favorable scenario is the point that, as of the end of last year, Bloom was sitting on a service backlog of $24 billion. Though not a secret by any stretch, the backlog suggests there's some level of revenue-growth clarity attached to this stock. Call it clarity. Call it peace of mind, but whatever the term used, Bloom has it. That's not guaranteed with all growth stocks, but it could support Bloom's long-term upside.

2. Bloom has cash

Though not perfect, Bloom's balance sheet is in decent shape, as cash on hand increased slightly during the March quarter from the end of 2025. The company was also operating cash flow positive in the first quarter to the tune of $73.6 million, a year-over-year increase of $184.3 million. That's noteworthy because the first quarter is usually a seasonally weak period for Bloom.

The cash and cash flow generating progress are important because, as is the case with many growing companies, Bloom carries debt. To be precise, its outstanding liabilities stood at $3.7 billion at the end of the first quarter.

Gross and service margins increased in the first three months of the year, and 2026 guidance for the former was raised. So Bloom's margin situation is improving, and that could trickle down to improving profits, thus providing runway for its balance sheet to improve over time.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.