What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ: FLNC) jumped 5.2% in the afternoon session after analysts at UBS raised their price target on the stock to $8.00 from $6.00.
While UBS maintained its "Neutral" rating, the significant 33.33% price target increase reflects a more positive outlook on the company's profitability. According to the firm, the change was driven by improved visibility into near-term gross margin improvement for the energy storage company. This brighter margin outlook is supported by lower universal tariff rates on imports from China and favorable recent IRS guidance concerning utility-scale solar projects. The company also recently reported quarterly earnings on August 11th, where it beat consensus earnings per share estimates by $0.03.
Is now the time to buy Fluence Energy? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Fluence Energy’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 8.2% on the news that President Donald Trump announced his administration would not approve new solar or wind power projects, causing a sell-off in the renewable energy sector. The move came after President Donald Trump posted on his social media platform, Truth Social, that "We will not approve wind or farmer destroying Solar," adding, "The days of stupidity are over in the USA!!!" This statement escalated his campaign against renewable energy development. The remarks prompted a sector-wide sell-off, pressuring solar and wind stocks broadly. Other renewable energy companies also saw their shares plummet following the announcement, reflecting investor concern over the future of green energy projects under his administration.
Fluence Energy is down 54.3% since the beginning of the year, and at $7.74 per share, it is trading 67.1% below its 52-week high of $23.50 from November 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $221.00.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
