Advertisement
U.S. markets close in 6 hours 27 minutes
  • S&P 500

    5,246.67
    -1.82 (-0.03%)
     
  • Dow 30

    39,835.00
    +74.92 (+0.19%)
     
  • Nasdaq

    16,356.93
    -42.59 (-0.26%)
     
  • Russell 2000

    2,114.35
    +44.19 (+2.13%)
     
  • Crude Oil

    82.44
    +1.09 (+1.34%)
     
  • Gold

    2,232.60
    +19.90 (+0.90%)
     
  • Silver

    24.77
    +0.02 (+0.09%)
     
  • EUR/USD

    1.0812
    -0.0018 (-0.16%)
     
  • 10-Yr Bond

    4.2160
    +0.0200 (+0.48%)
     
  • GBP/USD

    1.2640
    +0.0002 (+0.01%)
     
  • USD/JPY

    151.3260
    +0.0800 (+0.05%)
     
  • Bitcoin USD

    70,733.47
    -778.84 (-1.09%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,956.76
    +24.78 (+0.31%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Plug Power Inc (NASDAQ:PLUG): Is It A Good Long Term Opportunity?

The most recent earnings announcement Plug Power Inc’s (NASDAQ:PLUG) released in December 2017 confirmed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Investors may find it useful to understand how market analysts perceive Plug Power’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Plug Power

Market analysts’ prospects for the coming year seems optimistic, with earnings becoming less negative, arriving at -US$65.74M in 2019. In addition, earnings should continue its upward direction, arriving at -US$44.13M in 2020, and -US$76.69K in 2021.

NasdaqCM:PLUG Future Profit Mar 26th 18
NasdaqCM:PLUG Future Profit Mar 26th 18

Even though it’s informative knowing the growth year by year relative to today’s value, it may be more beneficial estimating the rate at which the business is rising or falling on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Plug Power’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 69.61%. This means, we can anticipate Plug Power will grow its earnings by 69.61% every year for the next couple of years.

Next Steps:

For Plug Power, I’ve put together three essential factors you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Future Earnings: How does PLUG’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PLUG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement