![]() Through a network of global partnerships, including with Brookfield Renewable Partners ( BEP), Plug Power is working on growing the g reen hydrogen industry globally: Plug Power, as a turnkey provider in a market leadership position for this technology, is well-positioned to capitalize on this megatrend. is active in an absolute growth industry, as hydrogen fuel cells will see huge demand growth in coming years as they allow for an environmentally friendly alternative to other fuels. ![]() ![]() Due to non-existent profits PLUG can't be valued on an earnings basis, but shares trade for around 30x this year's revenue, which is quite expensive. It should be noted, however, that the analyst consensus price target has been lowered in recent months, and may continue to be lowered going forward. Analysts are pretty bullish on the stock right now, as the consensus price target of $41 implies an upside potential of around 50% from current prices throughout the next year. is valued at $16 billion based on a diluted share count of a little less than 600 million. Since then, enthusiasm seems to have cooled, and shares have reverted back to the $20s. In early 2021, shares exploded upwards at a time when other renewable/new energy and related stocks, including EV plays, benefited from massive investor enthusiasm. Shares trade 130% higher than 12 months ago, but at the same time, shares trade at just one-third of the all-time high today. has seen its share price move up and down violently over the last year: From a risk-reward standpoint, there may be better picks available, though, despite the fact that I believe that shares will trade materially higher in 2031. Taking a longer-term view, we can expect that Plug Power will generate positive net profits despite the fact that shares are valuing the company at a relatively high current valuation. The company is, however, not profitable yet, and the path to meaningful net profits holds some uncertainties still. ( NASDAQ: PLUG) is active in a high-growth industry, which translates into a strong long-term business growth outlook, as long as the company can capitalize on its goals and management executes well. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% of all 250+ industries.Fokusiert/iStock via Getty Images Article Thesis The Manufacturing - Electronics industry is part of the Industrial Products sector. Plug Power is currently a Zacks Rank #3 (Hold). The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Our system takes these estimate changes into account and delivers a clear, actionable rating model. We developed the Zacks Rank to capitalize on this phenomenon. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Recent revisions tend to reflect the latest near-term business trends. Investors should also note any recent changes to analyst estimates for Plug Power. Our most recent consensus estimate is calling for quarterly revenue of $265.85 million, up 84.72% from the year-ago period.įor the full year, our Zacks Consensus Estimates are projecting earnings of -$0.99 per share and revenue of $910.96 million, which would represent changes of -23.75% and +81.34%, respectively, from the prior year. On that day, Plug Power is projected to report earnings of -$0.24 per share, which would represent a year-over-year decline of 26.32%. ![]() Investors will be hoping for strength from Plug Power as it approaches its next earnings release. This has lagged the Industrial Products sector's loss of 10.71% and the S&P 500's loss of 9.52% in that time. Prior to today's trading, shares of the alternative energy company had lost 21.9% over the past month. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%. This change was narrower than the S&P 500's 1.51% loss on the day. Plug Power (PLUG) closed the most recent trading day at $21.01, moving -0.14% from the previous trading session.
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