Plug Power Hits 52-Week High - Analyst Blog


Shares of  Plug Power Inc. ( PLUG ) 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 shares.

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.

Growth Drivers

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 $32 million.

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. ( WMT ), The Kroger Co . ( KR ), Mercedes Benz, and BMW. Plug Power also received contracts from other major forms that included The Procter & Gamble Company ( PG ), Bridgestone, Sysco Corporation, Ace Hardware, CVS, Lowe's Companies Inc. Stihl, and Coca-Cola Bottling Co. Consolidated.

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 forward.

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.

Estimate Revisions

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.

KROGER CO (KR): Free Stock Analysis Report

PROCTER & GAMBL (PG): Free Stock Analysis Report

WAL-MART STORES (WMT): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: KR , PG , PLUG , WMT

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