Shares of Fluence Energy (NASDAQ: FLNC) have fallen 52% over the past six months, underperforming the Zacks Alternate Energy – Other industry and fellow players FuelCell Energy and GE Vernova.
The selloff has been driven by a combination of battery oversupply fears, periodic execution delays, and broader macroeconomic pressures weighing on the clean energy sector.
Currently trading at $13.93, the stock sits 56% below its 52-week high, a level some analysts argue presents a compelling entry point for long-term investors.
Wall Street’s average target price of $18.89 for FLNC implies an upside of more than 35% from current levels, suggesting the market may be underpricing the company’s recovery potential.
One of the clearest bullish signals is the company’s backlog, which has climbed to a record level of approximately $5.6 billion, providing strong forward revenue visibility.
Management has also highlighted that accelerating utility demand, industrial electrification, and data-center growth have meaningfully expanded the company’s overall sales pipeline.
During Fluence Energy’s second-quarter fiscal 2026 conference call, management noted that the data center pipeline expanded 30% compared with the fiscal first quarter, signaling rapid momentum in that segment.
The rapid build-out of AI data centers is emerging as a particularly powerful tailwind, with battery energy storage systems increasingly essential for managing volatile power demands in next-generation AI infrastructure.
Fluence Energy has recently signed master supply agreements with two major hyperscale data-center operators, with initial orders expected to follow shortly, further validating its position in the AI power supply chain.
The company’s Smartstack platform has been specifically developed to address AI-related power requirements, giving Fluence a differentiated product offering as competition in the sector intensifies.
Fluence Energy reaffirmed its fiscal 2026 guidance, with management expecting annual recurring revenues to reach approximately $180 million by year-end, up from $148 million in fiscal 2025.
Adjusted EBITDA is still expected in the range of $40 million to $60 million for fiscal 2026, reflecting confidence in the company’s path toward sustained profitability.
On the valuation front, FLNC trades at a price-to-sales multiple of just 0.61, which is notably lower than industry peers including FuelCell Energy and GE Vernova (NYSE: GEV).
The stock carries a Zacks Rank of 2, or Buy, and has delivered an average earnings surprise of 18.1% across recent reporting periods, reinforcing the case that current weakness may represent an attractive buying opportunity.
