![]() As the sector becomes more lucrative, much larger companies, such as General Electric (NYSE: GE) and NextEra Energy (NYSE: NEE), could very well enter the sector.Īt this time, Star Peak Energy is trading at a post-merger valuation, based on certain assumptions, of $5.5 billion. In addition to American Superconductor, Itron (NASDAQ: ITRI) and ESCO Technologies (NYSE: ESE) offer similar solutions to those of Stem. Harry Hobbs, an Area Director of Engineering for the company, said that Stem’s “real-time data.is the real differentiator” that allowed him to triple his return on investment, according to Stem. Stem reported that it had helped InterContinental Hotels “halt rising energy costs” in California. “ AMSC stock has surged over 200% in the last 12 months. ![]() The company noted that the revenue of its “new energy systems” was “driven by … renewable projects in the United States, along with chip factories overseas. American Superconductor refers to these products as “new energy systems.” In Q3, the Grid unit’s sales increased 12% year-over-year. The company says that its Grid business, featuring products that help companies and utilities regulate electricity flow and the grid, is delivering consistent growth. ![]() Īlso, another company which has benefited significantly from these trends is American Superconductor (NASDAQ: AMSC ). And by “lowering energy costs, stabilizing the grid, alleviating intermittency and reducing carbon emissions, Stem makes itself and STPK stock very appealing. Importantly, given the latter points, Stem says that it reduces its customers’ “energy costs” by 10%-30%, using its AI. This is also likely to make batteries and grid management more important is the “electrification of transportation,” which in all probability will make electricity even more important and meaningfully more expensive over the longer term. Spurred by increased pressure to become “green,” many more companies and governments will increase their utilization of renewable energy. Moreover, the company correctly points out that the hugely increased popularity of renewable energy has made managing electricity flow much more 0complex for large businesses, while greatly increasing the difficulty of running grids for utilities. InvestorPlace - Stock Market News, Stock Advice & Trading Tipsħ Overvalued Stocks Investors Just Don’t Get Tired OfĪdditionally, the combination of renewable energy systems and batteries rapidly proliferating, Stem appears to be well-positioned to exploit that trend. Using artificial intelligence (AI), Stem says it provides enterprises with “integrated battery storage systems, network integration and battery optimization.” All Rights Reserved.Battery concept powering electric vehicle.Īs my headline indicates, however, I do think that Stem faces significant risks, including potentially strong competition. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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