For forward-looking investors, Plug Power (NASDAQ:PLUG) is often considered the hydrogen fuel-cell solutions-provider of choice. The daily trading volume of PLUG stock is consistently high, as more people are discovering the true potential of this clean-fuel up-and-comer.
Some commentators would even say that Plug Power is a pioneer in the fuel-cell space. And since there will be a change in the U.S. presidency and a possible shift toward more government spending on clean energy, it feels like the sky’s the limit for PLUG stock.
2020 has been a truly amazing year for PLUG shareholders. It’s encouraging to see the market really start to appreciate the true value of this company and stock.
So, where will PLUG stock go from here? A collaboration with a highly recognizable retail chain might give us a clue. Plus, there’s an e-commerce angle here, and that’s generally a good sign.
PLUG Stock at a Glance
Suffice it to say that PLUG stock can be a very fast mover. As evidence of this, note that the stock’s 52-week range is $2.53 to $33.02. Calling PLUG a 10-bagger wouldn’t even be sufficient to describe the gains this year.
On the other hand, PLUG stock was known as a quick mover even before this year. In fact, PLUG’s five-year monthly beta is 1.79. This suggests that the stock has moved significantly faster than the overall stock market for quite a while.
Piercing above the $30 level in December represented a milestone for the PLUG stock bulls. There’s strong momentum with this stock as PLUG had just attained $20 in November.
There were dips along the way to higher prices, however. These small price corrections are opportunities for traders to add to their positions in PLUG stock if they choose to do so.
Working Toward $1 Billion
It’s astonishing to consider just how far this little fuel-cell startup has come in recent years.
Not long ago, Plug Power revealed the company’s plans to increase its revenues from approximately $240 million to a whopping $1 billion by the year 2024.
Plug Power CEO Andy Marsh stated that part of the plan is to grow the company’s materials handling division to $750 million by 2024. Also by 2024, the company plans to generate $50 million worth of revenues from manufacturers’ stationary power systems.
Along with all of that, Plug Power intends to generate $200 million from its on-road commercial vehicle program. According to Marsh, five or six commercial vehicle partnerships are under way.
Marsh’s vision of expansion for Plug Power is ambitious but not without a clear strategy. “We think about where fuel cells work and where fuel cells aren’t ready yet. That’s how we built the first commercial market and continue to build other markets in this industry,” he explained.
A Crucial E-Commerce Connection
PLUG shareholders can appreciate Marsh’s aggressive outlook for the company. And in light of a recent development for Plug Power, a bullish outlook is clearly justified.
In a press release that should be celebrated by all PLUG stockholders, Plug Power announced an expansion of its fuel-cell solutions into Walmart’s (NYSE:WMT) e-commerce applications.
Plug Power currently supports over 9,500 GenDrive fuel-cell-powered vehicles that are used by Walmart at 37 North American distribution centers.
Granted, Plug Power has already been deploying hydrogen and fuel-cell solutions into Walmart’s e-commerce network since August. Nevertheless, this update indicates plans for an additional expansion of these deployments in 2021.
Marsh succinctly summed up the value proposition of this planned expansion, saying that it “signifies the next step in our relationship as we support Walmart in their scaling eCommerce business while helping them meet the operational goals important to both Walmart and consumers.”
The Takeaway
Even without the Walmart partnership, PLUG stock would represent a powerful foray into the fast-growing hydrogen fuel-cell space.
But with the retail giant on its side, Plug Power is poised to expand its revenues and reach in 2021 and beyond. As a result, I’ve given a “B” rating and a recommendation to buy in my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in PLUG. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.