One of the leading contenders in the energy storage space, Stem Inc. (STEM) remains largely unknown, having spent a decade as a private holding before tiptoeing onto Wall Street via SPAC last April, explains Todd Shaver, growth stock specialist and editor of Bull Market Report.
We don’t mind the stealth. The company’s moment has finally arrived. Stem — a Top Pick for more aggressive investors — offers proprietary AI-enabled software that it sells bundled with third-party hardware to provide what amounts to “battery as a service” to renewable power generation projects and other industrial customers.
The software is the key to efficiency, effectively creating a smarter internal grid that supports increasingly crucial applications like electric vehicle fleet charging and managing solar-powered big box stores.
With over 950 deployments so far (including 40 leading utilities), every new deployment deepens the competitive moat and tightens STEM’s grip on its market.
Word of mouth is spreading: While this is still an emerging enterprise, bookings currently run above a respectable $100 million a quarter and at this growth rate breakeven could come by the end of the year.
At that point, the world belongs to STEM . . . provided it doesn’t get bought out. With global battery storage capacity expected to rise 25 times by 2030 as $1.2 trillion in potential investments in integrated storage systems comes online, this company has massive secular tailwinds behind it. If you’re looking for a green opportunity, STEM has the potential to become something truly special.
