Is Stem Inc. (NYSE:STEM) a buy in 2026?
No. Stem Inc. is one to avoid for now, per the Compass.
A $69M market cap on a shrinking software pivot that still burns cash, with a share count that could double before it works.
Where STEM is headed
Stem in mid-2027 looks a lot like Stem today, only smaller and more diluted. The company sold investors on a pivot away from low-margin hardware reselling toward PowerTrack software and managed services for solar and storage assets. Two years in, the transition is real but the math still doesn't work. Revenue is contracting 10.8% year on year, operating margins sit at negative 37.5%, and the software revenue that was supposed to justify a re-rating hasn't scaled fast enough to offset the hardware wind-down.
Read the full Compass Direction on STEM
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios.
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Frequently asked questions
Is Stem Inc. (NYSE:STEM) a buy in 2026?
No. Stem Inc. is one to avoid for now, per the Compass. A $69M market cap on a shrinking software pivot that still burns cash, with a share count that could double before it works.
What is STEM's Compass Score?
Stem Inc. scores 50/100 on Alexandria's Compass, placing it in the "Neutral" tier. Scores blend eight factors and update weekly.
What is the price target for STEM?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the STEM page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.