Judging by the heavy daily trading volume, it’s evident that Plug Power (NASDAQ:PLUG) is a well-known name in the green-power space. For people seeking to invest in the future of hydrogen fuel cell technology, PLUG stock is an obvious choice.
The green-energy movement has caused the competition to heat up in this space, however. For Plug Power shareholders to expect higher price action going forward, they’ll need to know that the company is pushing forward in terms of innovation and collaboration.
Fortunately, recently closed deals have lent credence to Plug Power’s position as a true market leader. Indeed, the company seems to be expanding as fast as the PLUG stock price. And as Plug Power continues to scale up, it may be time to seriously consider owning the shares as a growth play.
PLUG Stock at a Glance
Folks who have been monitoring the price of Plug Power’s stock since the company’s initial public offering will know that it has been much higher than it is now. Therefore, the stock should be viewed in the context of its recent price action. In the short to medium term at least, it’s fair to say that a major breakout is in progress.
For several years, PLUG stock just couldn’t seem to break out of a range between $1 and $3. However, early in 2020 the stock surged to nearly the $6 level. But in February and March, the onset of the novel coronavirus knocked the stock back down.
PLUG stock was pushed back into its former range, but not for very long. Another spike above $6 would commence in June, giving encouragement to patient stockholders. At this point, the momentum is undeniable and there’s no apparent limit to how high the company’s stock can go this year.
Two Reasons to Like Plug Power Now
A pair of headline-grabbing buyouts highlight Plug Power’s ambitious plan to dominate the hydrogen fuel cell market. The two acquisitions are, in fact, part of the company’s five-year plan initiated in September of last year.
To be specific, Plug Power recently completed its acquisitions of United Hydrogen Group and Giner ELX. These are highly value-added buyouts as Plug Power transitions from low-carbon hydrogen fuel cell solutions to zero-carbon solutions.
The company projects that the demand for hydrogen from Plug Power’s current customers will reach 100 tons per day in the year 2024. Acquiring United Hydrogen will help Plug Power to meet that demand. Plug Power expects that the United Hydrogen addition will add 10 tons per day to the company’s current hydrogen-production capacity.
As for Giner ELX, this company developed a massive electrolysis hydrogen generator. It also innovated other technologies designed to facilitate the on-site re-fueling of hydrogen-powered fuel cells.
The Analysts Cheer
Those two buyouts might only be the beginning for Plug Power. A statement from the company suggests the possibility of even greater expansion: “Plug Power is focused on becoming one of the largest green hydrogen generation companies in the United States over the next five years and globally thereafter, and plans to continue to work with existing and new partners to accomplish this goal.”
At the moment, we can only speculate as to who the “new partners” might be. Still, we can’t really argue with B. Riley FBR analyst Christopher Souther, who affirmed Plug Power’s “strong momentum.” With that, Souther assigned PLUG stock a price target of $7 along with a “buy” rating.
In a similar vein, Barclays analyst Moses Sutton deemed Plug Power “the elder statesmen of a long-awaited, emerging U.S. hydrogen economy.” Sutton matched Souther’s $7 price target while giving PLUG shares a rating of “overweight.”
The Final Word
Even prior to the two recent buyouts, PLUG stock was a serious mover in the green-energy space. Now, given the company’s clear ambition to dominate the market, Plug Power is a sure bet on the bright future of clean hydrogen power.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.