Is a Breakdown in the Charts for Babcock & Wilcox (BW)?

Babcock & Wilcox Enterprises, Inc. (BW) provides advanced fossil and renewable power generation and environmental equipment. B&W’s technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions…

Babcock & Wilcox Enterprises, Inc. (BW) had a solid quarter where revenue rose 49.8% year over year and net income increased to $3.1 million, compared to a loss of $18.1 million in the same quarter last year. BW launched its ClimateBright platform in May with a pipeline of potential carbon capture and hydrogen combustion opportunities.

The firm had $144 million in cash as of the most recent quarter compared to only $3 million in short-term debt. Analysts expect sales to rise 33.8% for the year. However, earnings are expected to fall 95.1% in the current quarter.

The stock appears slightly overvalued with a forward P/E of 23.64. The stock was showing bullish momentum from the end of last year into March of this year, but performance has been mixed since, as shown in the chart below.

Take a look at the 1-year chart of BW below with added notations…

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