![]() ![]() No Reason to LeaveĪgain, I can see why it’s tempting to argue that “the easy money has been made” in Plug Power stock. In fact, Plug Power reiterated its outlook for 2024 (which already looks conservative.) It expects $1.2 billion in billings, more than three and a half times the 2020 figure. So growth doesn’t end when this pandemic does. Major companies are looking to minimize their environmental footprint, and hopefully save a few dollars in the process. We know that adoption of alternative fuels is only increasing. What we’re seeing here is a big shift - and maybe a paradigm shift. Major customers including grocers and two of the country’s biggest retailers saw massive spikes in demand, thus massive spikes in usage of their GenDrive units. ![]() And what’s important is that the usage has risen through the novel coronavirus pandemic. In the third quarter, the number of Plug Power’s GenDrive forklifts deployed rose more than 130% year-over-year. There’s one more data point that should be highlighted. That growth should get the company easily into the black in the not-too-distant future. Net earnings still are slightly negative, but Plug Power is investing in its growth. Adjusted EBITDA came in at a healthy $24 million. Billings (the actual amount of business won in the quarter) more than doubled year-over-year. The results in the quarter easily beat Wall Street estimates. And this week’s third quarter earnings report further confirms that this is a company that finally has learned how to execute.Īfter all, Plug Power posted a classic “beat and raise” quarter. That’s a big reason why Plug Power stock has soared. Over the past few quarters, however, the story has changed. But there wasn’t a ton of evidence that Plug Power, this time, would be able to capitalize on that opportunity. The opportunity for increased adoption of the company’s hydrogen-powered forklifts was obvious even at the start of this year. Plug Power stock would find big rallies from time to time. It took over two decades for the company to generate a single quarter of positive Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Targets were always pushed out or simply missed. It also had a very simple bear case: the company had been a serial disappointer. ![]() When I recommended investors buy the dip in Plug Power stock, one of the key points I made was that Plug Power had become a different company.Īfter all, coming into 2020, PLUG had an intriguing bull case. But I believe the stock, from a long-term perspective, is just getting started. So, yes, PLUG stock has posted an incredible rally so far this year. Meanwhile, this week’s earnings report shows that the story here is nicely on track. The stock has rallied another 60% since finding its footing. The stock pulled back sharply last month some investors no doubt saw the move as a much-needed correction. Indeed, this year, assuming that a big rally somehow ‘has’ to end has been a way to miss out on even more gains. Still, it’s tempting to believe that, given its sheer size, the rally has gone too far - or at least far enough.īut I don’t believe that’s the way to look at PLUG stock or other big 2020 winners. Growing optimism toward alternative fuels has helped as well. ![]() Among some 1,800 stocks with a market capitalization of at least $2 billion, it’s in 5th place.Ĭertainly, the news delivered by Plug Power so far in 2020 has been positive. exchanges, Plug Power stock has posted the 18th best performance so far this year. After all, following a 15% bounce on Wednesday, PLUG now has rallied an incredible 657% so far in 2020. ![]()
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