S&P 500   3,790.93
DOW   30,316.32
QQQ   282.13
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In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Small-Cap Catalyst Pharma Is Among Market's Best Price Performers
3 Safe Earnings Plays for a Risk-Off Market
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Micron to bring microchip plant to upstate New York
Tyson Foods Takes a Lickin’ and Keeps on Tickin’ Lower
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Stocks rise in extended rally, clawing back more ground
Live Updates: Russia-Ukraine War
S&P 500   3,790.93
DOW   30,316.32
QQQ   282.13
6 Benefits of Working With a Franchise Consultant or Broker
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Small-Cap Catalyst Pharma Is Among Market's Best Price Performers
3 Safe Earnings Plays for a Risk-Off Market
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Micron to bring microchip plant to upstate New York
Tyson Foods Takes a Lickin’ and Keeps on Tickin’ Lower
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Stocks rise in extended rally, clawing back more ground
Live Updates: Russia-Ukraine War
S&P 500   3,790.93
DOW   30,316.32
QQQ   282.13
6 Benefits of Working With a Franchise Consultant or Broker
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Small-Cap Catalyst Pharma Is Among Market's Best Price Performers
3 Safe Earnings Plays for a Risk-Off Market
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Micron to bring microchip plant to upstate New York
Tyson Foods Takes a Lickin’ and Keeps on Tickin’ Lower
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Stocks rise in extended rally, clawing back more ground
Live Updates: Russia-Ukraine War
S&P 500   3,790.93
DOW   30,316.32
QQQ   282.13
6 Benefits of Working With a Franchise Consultant or Broker
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Small-Cap Catalyst Pharma Is Among Market's Best Price Performers
3 Safe Earnings Plays for a Risk-Off Market
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Micron to bring microchip plant to upstate New York
Tyson Foods Takes a Lickin’ and Keeps on Tickin’ Lower
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Stocks rise in extended rally, clawing back more ground
Live Updates: Russia-Ukraine War

It Might Be Time To Plug Into Plug Power, Inc 

It Might Be Time To Plug Into Plug Power, Inc 

Plug Power Has A Solid Base Of Support 

The price action in Plug Power, Inc (NASDAQ: PLUG) has been as volatile as any stock in our coverage over the last year and, like some others, appears to be at or near its bottom. The price action is down nearly 80% since hitting its peak and, coincidentally, trading at levels the institutions once thought attractive. The institutions have been buyers for the last 11 quarters, but the peak of activity was in Q1 and Q2 of 2021, when the price action was near the levels it is today. And the institutions are still buying. Their total holdings are above 52% and growing, which should provide a solid base of support for this market, and Plug Power is a desirable name in green energy. 

There are 18 analysts covering this green energy stock despite its small size, about a tenth the market cap of Tesla (NASDAQ: TSLA), and they rate it a sold Buy. The Marketbeat.com consensus rating is a moderate Buy that has held firm and steady for the last 12 months at least. The consensus price target, however, is trending lower but still offers ample upside for investors with even the low price target about 7% above the current price action. The consensus price target is down in all three comparisons but is still more than 100% above the current price, and the high price target offers another 100% on top of that. JPMorgan Chase (NYSE: JPM) is the last to lower its price target (while maintaining an overweight rating) but to $28 or about 75% above recent action. 


Plug Power Expected To Grow By Double-Digits 

The analysts have set a high bar for Plug Power, but we think the company should have no trouble clearing it. Although hydrogen is still lagging behind electrification in regards to the roll-out of green energy technology, it is gaining momentum. Recent contracts with facilities like Europe’s 2nd largest port promise to drive near-term results and long-term credibility for the company and its technology. The company is leasing land for a hydrogen production facility that is expected to produce 12,500K tons of hydrogen per year. As it is, the analysts expect about $165.60 million in revenue for the quarter, which would be a company record and up 32% from last year. 

The real question, however, is about earnings. The company has been struggling with the margin over the past few years and may not be able to meet the analyst's estimates. Margins are coming under pressure due to rising natural gas costs, a source of hydrogen molecules for the company’s operations, and may not be easily recovered. Energy prices are down from their peak but not expected to fall significantly in the near to short-term without a major recession. However, the company is working to improve its systems, which may lead to a technological breakthrough. In that event, this stock could become a top player in the green energy market.

Short Interest Is High For Plug Power 

The short interest in Plug Power isn’t phenomenally high, but 12% is high enough to guarantee a short-covering rally, if not a short-squeeze, given the right catalysts. The right catalyst could be the Q2 earnings report scheduled for early August, but we aren’t holding our breaths. While the revenue could easily outpace the consensus, the earnings could easily lag, which is not a compelling catalyst for us. If, however, the company can mitigate costs in a sustainable way, it might be time to plug into a few shares of this stock. 

It Might Be Time To Plug Into Plug Power, Inc 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Plug Power (PLUG)
2.4635 of 5 stars
$23.39+7.2%N/A-21.46Moderate Buy$34.23
Tesla (TSLA)
2.6047 of 5 stars
$249.44+2.9%N/A90.16Hold$285.93
JPMorgan Chase & Co. (JPM)
3.5024 of 5 stars
$112.77+4.7%3.55%9.05Moderate Buy$145.95
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Plug Power right now?

Before you consider Plug Power, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Plug Power wasn't on the list.

While Plug Power currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

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