BE is the perfect contrarian target
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Back in November, fuel cell company Bloom Energy Corp (NYSE:BE) signed an agreement with American Electric Power (AEP) to provide power solutions to data centers. Since its late-November highs, BE has pulled back to its 50% year-to-date level, an area that coincides with its $5 billion valuation.
This pullback also aligned with the candle-high following the AEP announcement, as well as its ascending 20-day moving average. With technical support lining up, a next leg higher could be imminent in 2025.
BE is the perfect contrarian target; a relative strength leader with plenty of built-in skepticism. Of the 22 brokerages covering the stock, 11 maintain tepid "hold" ratings. Short interest, meanwhile, is at all-time highs and increased 16%in the last 30 days.
With bearish bets up 48% in 2024 and a healthy 23% of the equity's total available float now sold short, there's ample room for a short squeeze.