What’s New With Plug Power Stock?

Plug Power (NASDAQ:PLUG), a company that sells hydrogen fuel cell systems, saw its stock rise by a solid 18% over the last month (about 21 trading days), considerably outperforming the broader S&P 500 which rose about 2% over the same period. There have been multiple developments that have driven the stock.  Plug Power recently updated its long-term guidance, noting that its revenues could grow by about 65% next year to between $825 million and $850 million while forecasting sales of $3 billion by 2025. Moreover, the company also saw two notable deals that could help deploy its hydrogen technology beyond its current material handling and power backup end markets into other highly polluting industries. The first deal, with Airbus, will see the two companies study how to bring green hydrogen to the aviation industry, with Airbus focusing on hydrogen aircraft and Plug Power designing hydrogen infrastructure for airports.  Plug Power is also partnering with refinery major Phillips 66 to develop low-carbon hydrogen solutions that could be deployed in Phillips 66’s operations.

Now, is PLUG stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is only a 58% chance of a rise in PLUG stock over the next month (twenty-one trading days). See our analysis on Plug Power Chance Of Rise for more details.

Five Days: PLUG 4.7%, vs. S&P 500 1.6%; Outperformed market

(27% Event Probability)

• Plug Power stock rose 4.7% over a five-day trading period ending 10/22/2021, compared to the broader market (S&P500) which rose by 1.6%.
• A change of 4.7% or more over five trading days has a 27% event probability, which has occurred 679 times out of 2517 times in the last ten years.

Ten Days: PLUG 20%, vs. S&P500 3.5%; Outperformed market

(13% event probability)

• Plug Power stock rose 20% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 3.5%.
• A change of 20% or more over ten trading days has a 13% event probability, which has occurred 318 times out of 2517 times in the last ten years.

Twenty-One Days: PLUG 18%, vs. S&P500 2.2%; Outperformed market

(22% event probability)

• Plug Power stock rose 18% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.2%.
• A change of 18% or more over twenty-one trading days has a 22% event probability, which has occurred 545 times out of 2516 times in the last ten years.

See our theme on Hydrogen Economy Stocks for an overview of U.S. companies that sell hydrogen fuel cells, related renewable energy equipment, and supply hydrogen gas.

[7/15/2021] What’s Happening With Plug Power Stock?

Plug Power (NASDAQ:PLUG), a company that sells hydrogen fuel cell systems that are used in the material handling and power backup space, saw its stock decline by around 12% last week (five trading days), underperforming the broader S&P 500 which was roughly flat during the same period. While the performance of the broader alternative energy sector has been mixed in recent weeks, Plug Power stock also appears to have been hurt by some positive news for a competitor. Hyzon Motors, a company that manufactures hydrogen fuel cell-powered vehicles, announced that it has entered into a memorandum of understanding with TotalEnergies, one of the world’s largest energy companies, to supply hydrogen fuel-cell-powered trucks. Separately, last week, Hyzon also announced a partnership with Chart Industries to develop heavy-duty commercial vehicles. Although Plug Power is more focused on the material handling market presently, it has been looking to move into the broader transportation space and the recent traction by Hyzon is likely being viewed as a negative for the company. So will the declines continue, or is a rally looking more likely for Plug Power stock? According to the Trefis Machine Learning engine, Plug Power stock has a 53% chance of a rise over the next month. See our complete analysis on Plug Power Stock Chances of A Rise For More Details

So is Plug Power stock a buy for longer-term investors? Investors see the company and its fuel cells as a key play on the growth of the hydrogen economy. While traditional renewable energy sources such as solar and wind are being used in the electricity generation and transportation markets,  hydrogen is likely to be crucial to helping decarbonize sectors including aviation, shipping, heavy industries, and long-distance trucking. While the stock trades at a relatively lofty 30x consensus 2021 revenues, this is partly justified by strong growth rates (sales growth is likely to stand at over 40% over the next two years). Moreover, Plug stock remains down by almost 60% from its all-time highs seen in January and this could also present an opportunity for investors. That said, the company remains deeply loss-making, with even its gross margins remaining negative and it could be years before the company turns a profit.