Plug Power Inc.
) closed the trading session yesterday by hitting a 52-week high
of $2.33, reflecting a solid yearly return of 356.9%.The average
trading volume for last three months aggregated 12,869,145
Plug Power delivered positive earnings surprises in two of the
last four quarters and has a market cap of $159.03 million.
Despite strong price appreciation, this Zacks Rank #3 (Hold)
stock still has some solid fundamentals that may further drive
the stock upward.
The company's operational excellence and timely completion of
order targets in the fourth quarter were the primary driving
factors for Plug Power.
On Jan 2, Plug Power announced its successful completion of
fourth quarter (ending in March 2014) order targets, well ahead
of stipulated time. The aggregate value of the contracts totaled
Plug Power's contracts comprised both product sales as well as
maintenance orders. The contracts included those from its key
existing clients like
Wal-Mart Stores Inc.
The Kroger Co
), Mercedes Benz, and BMW. Plug Power also received contracts
from other major forms that included
The Procter & Gamble Company
), Bridgestone, Sysco Corporation, Ace Hardware, CVS, Lowe's
Companies Inc. Stihl, and Coca-Cola Bottling Co.
The company has been making efforts to increase its internal
revenue growth through diligent execution of operational plans.
In this quarter, the company had received a large contract for
deploying its turnkey GenDrive solution at multiple sites of a
food distribution client. This solution comprising of products
and services for hydrogen fuel cells in the material handling,
was the key product that contributed to its success. The
increasing demand for hydrogen fuel cells for powering vehicles
and automobiles is also likely to benefit the company going
In May 2013, the company has received a strategic funding
worth $6.5 million from its partner Air Liquide which propelled
the order growth in the third quarter.
Over the last 7 days, the earnings estimates did not show any
upward or downward revision for 2013. Although there is a lacuna
of estimate revisions, we envision an uptrend for the stock
backed by its strong growth potential.
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