wind turbines on brown sand

The Fuel Cell share price (NASDAQ:FCEL) has made a note worthy move up in the past fortnight. FCEL has gained nearly 50% in 12 days. Today has seen strong volume supporting a 17% rise on the day (at the time of writing). 137M shares have traded hands, well above the 50DMA of 28.5M shares.

Fuel Cell fundamentals

Fundamentals are always important for investors. Let’s compare July 2021 to the previous years balance sheet at that time. Debt was $135M and equity was $156M. This current year saw debt of just $32M (down over 75%) and equity has risen to $726M (365% gain). This sets Fuel Cell up nicely to cover debts with ease over the next year.

The company builds micro-scale power plants that run using fuel cell technology. They are currently in use at locations such as hospitals and manufacturing sites. So the companies credibility, the growing demand for net-zero emissions combined with strong financials and a previous history of a meteoric rise set FuelCell up nicely for your portfolio.

Earnings

Revenue was up 43% year-over-year for the latest earnings (14 September), at $26.8 million. Adjusted losses per share were 4 cents. Both numbers beat Wall Street estimates. FCEL stock closed up nearly 15% on the news.

The next earnings are in January, but this recent performance shows signs that FuelCell are progressing towards profitability.

Technicals

From a technical standpoint, the stock looks strong. Today, it has broken resistance of $8.30, and looks set to close above this. This move was supported by heavy volume as mentioned earlier, adding more strength to a further move. If this volume continues, $9.80 looks set to be tested within the week, with $12-$12.50 looking like the target after that, most likely within the month.

Chart provided by TradingView

A top watch for us

FCEL has become a top watch for most. It is the same for us. We like this current move and will be keeping an eye on what happens next. The stock will need to consolidate at some point to support a continued move, so waiting for an entry support by good risk and reward would be best. But we believe the longer term move of the Fuel Cell share price will be sustained and continue its move from here. The energy sector has gained momentum, we also like Plug Power for a similar move to this.

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