Plug Power Stock Forecast: PLUG down 3% after Monday spike
- PLUG stock is down 52% from 52-week high.
- Russia-Ukraine conflict continues to weight on entire equity market.
- Plug Power reports earnings after the close on Tuesday.
Plug Power (PLUG) opened more than 3% lower at $24.64 on Tuesday about five hours ahead of the hydrogen fuel cell company's fourth quarter earnings call. PLUG stock's 12% spike on Monday seems to have left investors with little additional upside on Tuesday.
Plug Power Stock News: Earnings await
Wall Street expects Plug Power to lose $-0.11 a share on revenue of $157.8 million. These results would be fairly good if achieved. PLUG missed on both earnings and revenue projections in Q3 2021. Still, the company has received just two earnings per share (EPS) revisions in the past 90 days.
Basically, Plug Power has a bad reputation among analysts. The company has missed consensus EPS four out of the past five quarters. It has missed revenue estimates on two quarters over the same period.
The analyst community has retained its full-year 2021 revenue forecast of $498.5 million and and EPS loss of $-0.58.
On the earnings call late on Tuesday, investors will focus on Plug's acquisition of Joule Processing, an equipment provider and liquefaction engineering firm, for up to $160 million. Plug will be using the company's liequefaction process at its hydrogen plant being built in Texas.
Morgan Stanley recently reiterated its outperform rating on the stock and wrote off the 52% drop the stock has seen from its 52-week high. Susquehanna gave the company a positive seal of approval in a recent client note, saying its integrated hydrogen technology "will put it in a favorable position to generate double-digit annual top-line growth over the next decade."
The stock rallied on Monday with most of the renewable sector as observers think Russia's invasion of Ukraine may force Western countries to invest more heavily in wind, hydrogen and solar.
PLUG key statistics
| Market Cap | $13 billion |
| Price/Earnings | N/A |
| Price/Sales | 375 |
| Price/Book | 3 |
| Enterprise Value | $9.5 billion |
| Operating Margin | N/A |
| Profit Margin |
N/A |
| 52-week high | $51.73 |
| 52-week low | $17.51 |
| Short Interest | 12% |
| Average Wall Street Rating and Price Target | Buy, $43.04 |
Plug Power Stock Forecast: $29.59 is clear target
PLUG stock was able to find its footing near $18.30 twice over the past two months. With Monday's 12% boost, the stock has now conquered the $23.75 resistance level. This price level served as resistance in February and also as support several times last fall. Now $29.59 looms ahead. The region surrounding this price consistently served as resistance in August, October and December of 2021. $32.50 is the next target above here.
The Relative Strength Index (RSI) has trended up steadily since the end of January. Now at 57, the RSI appears ready to shoot higher after being kept down for so long. Support sits near the 9 and 21-day moving averages at $23.75. Longer term support remains at $18.30 too.
PLUG 1-day chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
