Plug Power (NASDAQ:PLUG) has been languishing on the low end of the market for a few months, but the price of PLUG stock is suddenly surging once again. Hydrogen fuel cells can save a lot of energy in an increasingly sustainable world. As such, they’ve become more popular than ever. This company’s success supports this trend.

In fact, Plug Power is up 11% over the past month.

You can chalk its recent ascent to its 2022 outlook. Latham, N.Y.-based Plug Power issued a mixed earnings report. However, it reaffirmed its 2022 revenue guidance of $900 million and $925 million. The analyst consensus forecast is for $905.8 million. Therefore, the number is positive.

As they increase production and sign agreements with suppliers, the current average molecule costs will decrease in 2022. In fact, according to Barron’s reporter Sabrina Escobar, the company is so sure of the potential outcome that it hopes to break even on fuel costs by 2023.

Plug Power is also expanding its reach. Apart from Europe, where it already has a strong foothold, the company has a very exciting partnership with the South Korean conglomerate SK Group.

Finally, hydrogen fuel strategies are becoming commonplace all over the world. As countries strive to get off fossil fuels, renewables are the next big thing.

The use of renewable energy is on the rise as countries want to reduce their reliance on fossil fuels that contribute to global warming and pollution.

In addition, because now is a time of international tension, with Russia and Ukraine at each other’s throats, countries are looking at the pivot toward renewables and they are looking at this strategy through a security prism as well.

Due to all of these factors, the future for Plug Power looks secure. With that said, let’s take a closer look at the bullish case behind PLUG stock.

Plug Power’s Financials Are Moving in the Right Direction

Volatility in growth stocks is par for the course. However, this year is a bit different. Due to rampant inflation, the Federal Reserve is looking to tighten monetary policy. That includes frequent rate hikes and holding off on procuring bonds. Naturally, this has led to a selloff in growth stocks, and PLUG is no different.

However, the company gave investors a reason to smile when it released its latest earnings report. The loss was wider than expected at 33 cents per share. However, revenues came in at $161.9 million, a record for the company.

The full-year figures told much the same story. A loss of 82 cents per share was wider than expected. However, revenues of $502.3 million were better than expected. The majority of the losses came from non-cash charges that affected the result, including inventory write-downs, restructuring and goodwill impairment.

However, the best part of the report was the guidance. As mentioned earlier, the company reaffirmed its guidance of 2022 for $900 million to $925 million in revenue. That represents a year-over-year gain of up to 80%. This is on top of other key initiatives it will be focusing on during this period, including completing specific projects.

In a letter addressed to shareholders, CFO Paul Middleton and Andrew Marsh, President and Chief Executive Officer, said, “we’ve positioned the company for a strong 2022 and beyond. It keeps us on pace to meet our 2025 goals of $3 billion in revenue and 17% operating income margin.”

The Secular Shift Toward Hydrogen Technology

Alongside strengthening financials, the general movement toward hydrogen technology helps bolster the long-term case behind PLUG stock.

Environmentally safe, renewable, hydrogen-powered technologies play a large role in combating the pollution that many are now familiar with. And many countries worldwide have been increasingly adopting these clean energy sources.

For example, India and China have drawn considerable attention with their hydrogen fuel cell technology development pipelines. The plans are promising for the future of their economies. These are the biggest countries in the world in terms of population size.

Hydrogen and fuel cells are also a key part of the American strategy toward renewable energy. The U.S. Department of Energy Fuel Cell Technologies department can be found within the Office of Energy Efficiency and Renewable Energy. It is responsible for exploring this area.

Plug is taking advantage of this shift by entering new markets through partnerships and acquisitions.

Last year, it announced a partnership with French carmaker Renault on a joint venture that created a lot of positive momentum. Renault plans to build three types of fuel-cell vans in tandem with Plug. They will be manufactured at their facilities in France. These vans use hydrogen instead of petrol or diesel to help clean up the air around them.

Furthermore, in February 2021, South Korea’s largest energy provider SK Group completed its $1.6 billion investment into a JV with Plug Power. The plan is to increase the use of hydrogen fuel cell technology in the region through the partnership.

Staying in South Korea, Plug Power inked a deal with Edison Motors to help get their hydrogen-powered city buses going by 2023.

Plug Power also recently acquired Joule Processing for a maximum of $160 million. Joule’s technology for hydrogen liquefaction will provide PLUG with the opportunity to develop more cost-effective liquefied hydrogen. The deal is estimated to lead towards $200 million in Capex savings during a four-year period.

All of these developments help fortify PLUG stock as a winner in the long run.

Bottom Line on PLUG Stock

The hydrogen fuel cell industry is still in its infancy, with many companies in the space still working to establish financial viability. That also means you have a lot of market space to explore. In this case, Plug Power is a top stock to invest in if you’re bullish about hydrogen’s future in fuel cells.

The company has had some rough times, but it is now in a better position. We can expect more rapid growth from the hydrogen fuel cell industry in the coming years. Plug Power is one of the first companies to drive fuel cell innovation. And it is delivering healthy topline growth. On top of that, it has inked several partnerships worldwide that will expand its footprint throughout the world.

Overall, PLUG stock has a bright future ahead of it and is an enticing prospect in the hydrogen fuel space.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.