FuelCell Energy (FCEL) Stock Squeezes Shorts Ahead Of Earnings

FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is running for the top in the market this morning, trading on gains of more than 8%. A look on Yahoo! Finance and a search through the SEC will show you that no news has been released. In fact, even on social platforms, many are asking what’s going on. Nonetheless, it seems as though we’re seeing the beginning of a short squeeze ahead of earnings. Here’s what’s happening:

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FCEL Stock Gains As Shorts Cover

While FuelCell hasn’t issued any news, there’s good reason for the gains. The truth of the matteris that the stock is pretty heavily shorted. As such, short sellers know that if a catalysts sends the stock up, they could lose their shirts!

At the moment, investors are anticipating an earnings release that’s expected to come out next week. Of course, if that release is positive, FCEL could skyrocket. Moreover, positive movement is expected ahead.

As we near the date of the earnings release, fear of missing out, or FOMO, will likely lead to more buying into the stock, and the shorts know it. Considering this, it seems as though shorts are racing to cover their positions ahead of the move, leading to what may become the beginning of a short squeeze.

FCEL Earnings Will Be One To Watch

FuelCell has undergone some drastic changes as of late. Instead of focusing on unit sales, the company is now focused on building out energy production facilities at a utlity scale level.

The company has a key competitive advantage here. It’s recently announced extended-life stacks greatly reduce the cost of maintenance and lead to a substantial increase in production. To learn more about them, click here.

Nonetheless, these extended-life stacks give the company the competitive advantage of having the best-in-class technology. As such, the utility-scale fuel cell facilities are starting to make far more sense.

Now, investors are waiting to see what this looks like on the earnings report. The most recent report showed a drastic reduction in revenue as the focused shifted. As such, investors will want to see strong revenue growth from FCEL in the most recent quarter, and guidance of more of the same.

Nonetheless, if this happens, we could see tremendous gains. So, keep your eyes peeled for the earnings report ahead.

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