Investors who have owned stocks in the past year have generally experienced some big gains. But there is no question some big-name stocks performed better than others along the way.
FuelCell’s Big Run: One company that has been a rollercoaster investment in the past year has been alternative energy stock FuelCell Energy Inc FCEL.
FuelCell is a far cry from some of the fresh new alternative energy startup stocks that have collectively rallied over the past year. In fact, FuelCell Power went public all the way back in 1992 and has been mostly disappointing investors ever since.
FuelCell has recently said it will have positive adjusted EBITDA by 2022. However, FuelCell hasn’t been profitable in nearly 30 years as a public company, and there’s not a concrete plan for how it will become profitable in the next year
In fact, net losses have increased year-over-year in four out of the past five years. The company’s backlog shrank 7% in its most recent quarter, and it has a tremendous concentration risk given its three largest customers account for two-thirds of its revenue.
See also: How to Buy FuelCell Energy (FCEL) Stock
In 2019, FuelCell reported a $77.5 million net loss on $60.7 million in revenue. In 2020, revenue jumped 16.6% to $70.8 million, but net loss also increased to $89.1 million.
At the beginning of 2020, FuelCell shares were trading at $2.77. By the beginning of March, the stock was down to around $2.02 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic. On March 16, FuelCell shares dropped all the way down to $1 in intraday trading, its low point of the pandemic.
Fortunately for FuelCell investors, the stock rebounded along with the rest of the market in the weeks that followed.
FuelCell shares hit $3 for the first time in early June, but the rally was just getting started. The stock made it to $4 in November and hit $10 just weeks later when the rally really started to accelerate.
The major catalyst was seemingly the U.S. election in November which Joe Biden secured a victory as president and Democrats gained control of both houses of Congress.
FuelCell In 2021, Beyond: FuelCell shares eventually made it as high as $29.44 in February. Unfortunately, a market rotation out of unprofitable growth stocks and into value stocks hit the alternative energy group hard. Over the last three months, FuelCell shares have given up the majority of their gains and now trade at just $7.70.
Still, FuelCell investors who bought one year ago and held on through an extremely turbulent year have now generated a huge return on their investment. In fact, $1,000 in FuelCell stock bought on May 17, 2020, would be worth about $4,212 today.
Looking ahead, analysts are expecting FuelCell to bounce back in the next 12 months. The average price target among the eight analysts covering the stock is $12.25, suggesting 59.3% upside from current levels.
(Photo: FuelCell Energy)
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