It’s been a volatile but generally positive year for many renewable energy stocks. In fact, for companies like Plug Power (NASDAQ:PLUG) in the hydrogen space, it’s been a wild ride over the past couple of months. From May’s trough to July’s peak, PLUG stock nearly doubled. Thus, this is a green energy play many momentum investors continue to consider as ways to play a resurgence in interest around clean energy stocks.

Now, despite this broadly positive upward momentum over the past two months, it’s been a bumpy ride for shareholders. Today’s price action in PLUG stock evidences this, with the hydrogen fuel cell maker plunging more than 9% in early afternoon trading.

This move comes ahead of the company’s highly anticipated Q2 earnings, set to be released on Aug. 9. Plug Power will report earnings after market close, with its earnings call set for 4:00 p.m. Eastern next Wednesday.

Let’s dive into what investors should be watching ahead of this pivotal report.

PLUG Stock Sinks Ahead of Earnings Report Next Week

Plug Power’s upcoming earnings report is likely to be pivotal for long-term investors considering this stock. That’s mainly due to the fact that a significantly narrowed loss is widely expected by the market. The company’s Q2 results are expected to show a GAAP loss per share of 26 cents, which would represent a 9 cent per share improvement from Q1.

Now, it’s worth noting that Plug Power missed on the bottom line by 9 cents per share last quarter. Accordingly, if the company misses again on its bottom line, investors may be less accommodating this time around. Revenue growth is great (and Plug Power did beat on its top line last quarter). But profitable growth, or at least a pathway toward profitability, is likely to be demanded by investors looking to take a truly long-term view of this company.

Other hydrogen-related companies such as Nikola (NASDAQ:NKLA) have been surging recently. I’d expected PLUG stock to see similar movement, if the company beats earnings. Given today’s price action with this stock, the risk-reward looks a lot better heading into earnings. Accordingly, this is a stock I’ve got on my watchlist and may consider buying into earnings.

On the date of publication, Chris MacDonald 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.