Plug Power (NASDAQ:PLUG) stock is completely mispriced. In fact, many hydrogen stocks are ridiculously oversold at this point.
At the moment, PLUG stock trades just under its 200-day moving average.
It’s also oversold on relative strength (RSI), MACD, and Williams’ %R, which I’d use as an opportunity to buy.
With patience, (and greener days ahead) PLUG stock could challenge its prior high around $75.50. After all, there are plenty of catalysts.
1. Biden’s Pledged Will Move PLUG Stock Again
President Joe Biden just pledged to cut U.S. emissions by as much as 52% by 2030.
“These steps will set America on a path of a net-zero emissions economy by no later than 2050,” he said. “Scientists tell us that this is the decisive decade, this is the decade we must make decisions that will avoid the worst consequences of a climate crisis.”
Canada said it would reduce carbon emissions by up to 45% by 2030. Japan said it would reduce it by up to 46% below its 2013 levels. China once made a commitment to cut emissions before 2030, and perhaps achieve carbon neutrality around 2060.
In an effort to do so, many countries will turn to hydrogen.
For example, in Europe there are plans to install “40 gigawatts of renewable hydrogen electrolyzers and produce as much as 10 million metric tons of renewable energy by the year 2030,” says CNBC contributor Anmar Frangoul.
2. Hydrogen Is the Future
Goldman Sachs calls hydrogen a “once in a lifetime opportunity,” noting it could see a $12 trillion addressable market by 2030.
That could easily happen once you consider hydrogen could supply up to 25% of the world’s energy by 2050, according to Will Rhind, founder and CEO of Granite Shares.
Plus, Plug Power CEO Andrew Marsh recently claims hydrogen is the future, adding that he speaks with oil companies all the time about their interest in hydrogen.
In addition, auto supplier Bosch will invest up to $1.2 billion in hydrogen fuel cells, according to CNBC contributor Michael Wayland. The company also believes the hydrogen market just in Europe could reach $48.2 billion by 2030.
3. The Electric Vehicle Boom
Governments all over the world want a greener future, one with millions of electric vehicles all over the roads. Even major auto companies are switching over to EVs, such as Chevron (NYSE:CVX) and Toyota (NYSE:TM), which are exploring a hydrogen alliance.
“This is another important step toward building a hydrogen economy,” said Bob Carter, executive vice president, Toyota Motor North America.
He went on to explain that working together Toyota and Chevron have the potential to create new transportation choices on the way to carbon neutrality.
Even Nikola (NASDAQ:NKLA) just announced plans to install hydrogen fueling stations for trucks with Travel Centers of America.
The Bottom Line on PLUG Stock
Plug Power could significantly benefit from the $12 trillion hydrogen boom. Governments all over the world could become far more reliant on it. Electric vehicles could help drive growth. It may even supply up to 25% of the world’s energy in the next 30 years.
In short, the hydrogen story is quickly heating up. I’d use any signs of weakness in related stocks, like Plug Power, as an opportunity. With patience, I strongly believe Plug Power could return to its prior high of nearly $75.50 with patience. Buy and hold.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
