Bear of the Day: Fluence Energy, Inc. (FLNC)
Fluence Energy, Inc. FLNC makes large-scale battery energy storage systems and complementary software.
The company’s long-term growth prospects remain somewhat intact. But Fluence is projected to post its second straight loss in FY26, and its downward EPS revisions earn it a Zacks Rank #5 (Strong Sell).
Time to Stay Away from FLNC Stock?
Fluence Energy makes large-scale battery energy storage systems and smart software that help store electricity from solar and wind farms.
FLNC’s long-term bull case is centered around the growth of intermittent energy sources such as solar and wind, since its giant rechargeable batteries make these renewable energy sources more practical by smoothing out the ups and downs.
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FLNC is part of the broader AI energy trade and is attempting to grow alongside the soaring power demands from AI data centers. The firm is projected to grow its revenue by 50% in FY26 and then 21% in FY27.
The company is also projected to trim its adjusted loss from -$0.37 a share last year to -$0.23 in FY26 and surge all the way to +$0.18 next year. Unfortunately, Fluence’s earnings outlook has tanked since it reported its Q1 FY26 results in early February.
Fluence’s FY26 estimate slipped from -$0.09 to -$0.23 a share over the last 90 days, while its FY27 estimates dropped 30% to $0.18 a share.
These negative earnings revisions earn FLNC stock a Zacks Rank #5 (Strong Sell). Its recent downward revisions are part of a disappointing run over the last few years.
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FLNC stock has traded rather wildly over the last few years. Plus, it is down roughly 60% since going public in late October 2021. Therefore, it might be best for investors to look to other stocks in the wider AI energy space that have already proven themselves.
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Fluence Energy, Inc. (FLNC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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