Plug Power Inc. PLUG recently announced the acquisition of EnergyOr — a leader in advanced lightweight and compact PEM hydrogen fuel cell (HFC) systems. The company will use EnergyOr’s advanced HFC solutions to expand into the robotics and unmanned aerial vehicles(UAV) markets.
Opportunities for Plug Power
EnergyOr is an expert in developing fuel cells for robotics, small-scale material handling and aerospace industries. Integration of fuel cell in UAVs are in vogue lately as fuel cell-powered systems can fly longer and can be refueled quickly. Per MARKETS AND MARKETS, the UAV market is projected to reach $52.30 billion by 2025 at a CAGR of 14.15% from 2018 to 2025.
Thus, this acquisition willenable the company tocater to increasing demand. Also, it will help the company toexpand footprint in the UAV market and enhance use of fuel cell.
Fuel Cell Market Outlook
The demand for fuel cell technology is gaining popularity on the back of reliability and cheaper-than-conventional power sources. It also provides clean technology solutions. Per a report by Market Research Engine,the Hydrogen Fuel Cells Market is expected to surpass more than $3,480 million by 2025 at a CAGR of 13.0%.
Apart from Plug Power, other companies like Ballard Power Systems BLDP, Bloom Energy Corporation BE and FuelCell Energy, Inc FCEL are dealing with fuel cells and are expected to benefit from improving demand for fuel cell.
Zacks Rank & Price Movement
Plug Power currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plug Power has outperformed its industry in the past year. The company’s shares have rallied 30.3%, against the industry’s decline of 13.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ballard Power Systems, Inc. (BLDP) : Free Stock Analysis Report
Plug Power, Inc. (PLUG) : Free Stock Analysis Report
FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
Bloom Energy Corporation (BE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research