Plug Power Stock Is a Winner Amid Shift to Renewable Energy
In the last year, Plug Power stock has risen 758 percent. Is the stock a buy or sell at this price? How's the company's outlook and what can investors expect?
Jan. 7 2021, Published 9:00 a.m. ET
On Jan. 6, Plug Power stock rose by 7.5 percent, while the S&P 500 rose by 0.6 percent. The stock was up $2.45 from its previous closing price of $32.55 on a volume of 42,199,627 shares. Over the past year, the S&P 500 has risen by 15.2 percent, while Plug Power stock has gained 758 percent. Is Plug Power stock a buy or sell at this price?
As of 7:25 a.m. ET in pre-market trading on Jan. 7, Plug Power stock was up by about 24.3 percent at $43.51. The stock rose after the company received an investment of about $1.5 billion from South Korean conglomerate SK Group. Under the terms of the deal, SK Group will get 51.4 million shares of Plug Power at $29.29 per share. The two companies plan to form a joint venture in South Korea to accelerate hydrogen as an alternative energy source in Asia.
Plug Power on Stocktwits
Plug Power stock has become a major talking point on social media platforms. An investor named _elle_ on Stocktwits said that analyst Amit Dayal at HC Wainright upgraded Plug Power stock with a new target price of $60. Another user with the name skarask was surprised to know that Plug Power isn’t profitable yet.
Plug Power doesn’t pay dividends
Currently, Plug Power doesn’t pay dividends.
Plug Power’s valuation
On Jan. 6, Plug Power stock rose by 7.5 percent and closed at $35. At that closing price, the market capitalization was $14.5 billion. Plug Power stock trades at an EV-to-sales multiple of 44.30x. Since the company isn't reporting a net income right now, it doesn't have a PE ratio.
Plug Power’s stock forecast
Plug Power stock has risen by 2.4 percent in the last five days and by 758 percent in the last year. The stock is trading 6.7 percent below its 52-week high of $37.51 and 1,283.3 percent above its 52-week low of $2.53.
According to estimates compiled by CNN, analysts' median target price is $28 for Plug Power, which is 20 percent below its current stock price. Among the ten analysts tracking Plug Power, nine recommend a buy, one recommends a hold, and none recommend a sell. The highest target price of $50 is 42.9 percent above the stock's current price, while the lowest target price of $21 is 40 percent below the stock's current price.
Plug Power stock is a buy
Plug Power stock is a buy based on its strong growth outlook. The company will likely benefit from the shift from traditional fossil fuels for power to renewable energy sources including hydrogen, solar, and wind. President-elect Joe Biden plans to accelerate the transition to clean energy. In the third quarter of 2020, Plug Power reported better-than-expected sales of $107 million — up 80 percent from $59.5 million a year ago.