|Bid||0.0000 x 34100|
|Ask||0.0000 x 39400|
|Day's Range||3.8600 - 4.1300|
|52 Week Range||1.3200 - 4.5300|
|Beta (5Y Monthly)||1.57|
|PE Ratio (TTM)||N/A|
|Earnings Date||Mar 04, 2020 - Mar 08, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.50|
Danaher's (DHR) fourth-quarter earnings and organic sales results are expected to reflect gains from strong Diagnostics and Life Sciences segments. High costs and forex woes might have ailed.
Whatever the reason a stock is trading for under $5 a share, these stocks are conversation starters. Some will point out the low valuation of these companies presents opportunity for upside which will be hard to come by when investing in a large-cap. What’s more, you can load up on a much larger number of shares than you could with a stock trading in triple or even double digits.On the other hand, the naysayers argue these tickers are likely to have bad fundamentals and face too many obstacles and, therefore, are more of a speculative shot at lottery like returns than an investment.Either way, both are right, and both could be wrong, too. The trick, as with any investment, is to find the most compelling opportunities the market presents.We went on our own intrepid search for 3 stocks trading at a bargain price, specifically looking for ones which those in the know think are poised to take off over the next 12 months. We used TipRanks’ Stock Screener tool which revealed that in addition to the low valuation, all three currently have a “Strong Buy” consensus rating. Let’s dive in.Orbcomm Inc. (ORBC)Orbcomm operates in an industry that is expected to grow substantially in the new decade. Orbcomm provides machine-to-machine (M2M) solutions across the globe, with its Internet of Things (IoT) technology used to track and monitor large assets. The company’s main markets are in transportation, heavy equipment, and government services, amongst others. Orbcomm is the only commercial satellite network 100% dedicated to M2M.The stock experienced a crushing 2019, losing almost 50% over the year due to disappointing earnings reports and transportation industry headwinds; Economic data suggests that in November, more than 1,000 truck drivers lost their jobs. Further data from October indicates heavy truck order activity is down 51% from 2018 levels.Canaccord's Michael Walkley expects the soft industrial data to continue until mid-2020 and believes it will affect some of Orbcomm’s hardware sales. Nevertheless, the analyst thinks “the shares have limited downside risk at the current valuation.”The 5-star analyst expounded, “Despite our cautious view of macro trends for a portion of Orbcomm’s transportation business unit, we believe the shares have priced in soft near-term hardware sales trends. With Orbcomm’s shares trading roughly 4X our 2021 adjusted EBITDA estimate, we view the risk reward on the shares as very positive… We believe if management can execute, the shares should return to higher multiples.”What does it mean, then? It means that Walkley keeps his Buy rating on Orbcomm. To reflect the headwinds, though, the price target comes down a notch, from $10 to $9. The reduced figure still represents outstanding returns in the shape of 132% could be in store over the next twelve months. (To watch Walkley’s track record, click here)Overall, the Street is with Walkley. 2 additional Buy ratings given to the M2M solutions provider over the last three months add up to a Strong Buy consensus rating. The average price target comes in at $7.67 and implies potential upside of a hefty 98%. (See Orbcomm stock analysis on TipRanks)Plug Power (PLUG)From M2M technology, we move on to another very modern solution, hydrogen fuel cell technology, or renewable energy. Plug Power’s fuel cell systems are designed to replace conventional batteries in electric vehicles and industrial trucks.In sharp contrast to ORBC, PLUG had an outstanding 2019. Its share price added considerable muscle in the shape of 154% throughout the year. Investors were buoyed by strong forecasts, management purchasing company stock, and an ambitious five-year plan, projecting revenue of $1 billion and adjusted EBITDA of $200 million.More good news has extended the rally into 2020; Plug is up by over 23% year-to-date following the announcement that it was awarded a $172 million contract for hydrogen fuel cell deployments from a Fortune 100 customer.B.Riley FBR’s Christopher Van Horn argues PLUG’s “stock and the fuel cell technology seem to be at an inflection point.” The 4-star analyst thinks the contract demonstrates the company’s competitive position, and with an addressable market of $30 billion, believes there should be more opportunities for PLUG coming up.Van Horn said, “PLUG has an implied 35% five-year CAGR from our 2019 revenue estimate and an almost 90% four-year CAGR from our 2020 adjusted EBITDA estimate. We believe this growth could come from its existing customer base, including Wal-Mart, Amazon, and others, as well as new customers. We think this award at roughly $172 million over two years is another step in the right direction to achieve these goals.”Therefore, Van Horn reiterated his Buy call on PLUG along with a price target of $6. This indicates upside potential of 54% over the next 12 months. (To watch Van Horn’s track record, click here)Is the Street ready to plug into PLUG? Yes, it is. The 5 Buy ratings and solitary Hold given over the last three months make the consensus rating a Strong Buy. An average price target of $4.50 puts the upside potential at 15%. (See Plug Power stock analysis on TipRanks)Carrols Restaurant (TAST)From modern solutions, we move to the food industry, where we take a seat at Carrols Restaurant. The company operates the largest Burger King franchisee in the world.It often happens that a stock trading for under $5 used to have a much larger market-cap, but for whatever reason, has lost its luster, and is now much cheaper. For Carrols, last year was a combination of underwhelming earnings reports plus a bizarre software mix up which charged customers incorrectly for discount meals that cost the company $8.3 million. As a result, the stock took a beating in 2019, starting the year at $9.84 and ending it down 28% at $7.05.The company recently announced preliminary 4Q19 results which has further worried investors; In October, Carrols had anticipated 4%-plus SSS (same store sales) for Burger King in its upcoming report, but the new data indicates the SSS figure lands at only 2%. Since then, the share price has dropped further and is down by 32% since the start of the year.So, should you stay away from TAST? Not according to SunTrust Robinson’s Jake Bartlett. The 5-star analyst explained, “TAST attributed the SSS miss to decreased traffic as Burger King laps its '10 Nuggets for $1' promotion last year (through mid-Feb.), a 'Winter Whopperland' game promotion in December that drove app downloads, but not sales, a potential impact from Popeye's new chicken sandwich (TAST's Popeyes 4Q19 21.2%-plus), a potential impact from MCD's '2 for $5' promotion and weak breakfast sales (negative in 4Q19 as lapped the $0.89 pancake promotion). While disappointing, TAST appears encouraged by upcoming menu innovation at Burger King… The promotional environment should remain balanced and significant acquisitions for both Popeyes and Burger King stores are expected in '20.”Accordingly, then, Bartlett reiterated a Buy recommendation on Carrols and kept his $14 price target. The target implies upside potential of a whopping 192%. (To watch Bartlett’s track record, click here)Currently, there are few on the Street taking a bite out of Carrols, but those who are, like the (TAST)e. A Strong Buy consensus rating is formed of 3 Buys, and at $8.83, the average price target suggests potential upside of a handsome 84%. (See Carrols Restaurant stock analysis on TipRanks)
Stanley Black & Decker's (SWK) fourth-quarter earnings results are likely to reflect gains from product offerings and improved security business. External headwinds and industrial weakness might have been spoilsports.
General Electric's (GE) fourth-quarter results are likely to reflect gains from lower debts, restructuring actions and growth in Aviation. Issues in Power and margin problems of Renewable Energy might have ailed.
Shares of hydrogen fuel cell (HFC) maker Plug Power (NASDAQ:PLUG) were red hot in 2019. PLUG stock rose more than 150% throughout the year, as investors celebrated the company's ability to drive enormous sales growth through higher HFC uptake in the materials handling industry (think HFC forklifts).Source: Shutterstock More than that, investors celebrated management's bullish outlook to essentially grow billings by five-fold over the next five years, and generate a sizable $170 million in operating income by 2024 (versus wide operating losses today).Here's the thing. If management can deliver on those goals (or anything close to those goals, for that matter), then Plug Power's growth trajectory will remain robust for a lot longer, and PLUG stock will continue to rally in a big way.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, if management doesn't come close to delivering on those goals, then the Plug Power growth narrative will fall flat over the next few years, and so will PLUG stock.So, what's going to happen?I think management will deliver. Not because they have a history of delivering (they don't). Nor because they have history of strong execution (they don't). Rather, because it makes logical sense for HFC forklift adoption rates to significantly rise over the next few years. As they do, Plug Power -- the leader in the HFC forklift world -- will see its sales, margins and profits dramatically improve. * 7 Healthcare Stocks With 100% Street Support Big gains in Plug Power stock will follow suit. Why Plug Power Could Sustain Big GrowthPlug Power pundits will point out (and correctly so) that management has a history of over-promising and under-delivering, and that failed execution has resulted in tremendous shareholder dilution over the past several years. So, they think the aggressive 2024 guide calling for $1 billion in bookings and $170 million in operating profit is just a pie-in-the-sky over-promise.But, that analysis misses the point, and the point is that Plug Power finally has a clear and promising growth trajectory for its HFC technology in the materials handling industry.There are about 6 million forklifts in the world. For sustainability reasons, operators of those forklifts are feeling tremendous pressure to use alternative fuel forklifts with reduced emissions. Naturally, one would assume that batteries could do the job here, just as they've done the job in the passenger car market. But, battery forklifts have significant short-comings, including: * Long charging times (they take about 15 minutes to charge). * Significant free space requirements (you need a ton of space dedicated toward battery storage and recharging). * Loss of power (as batteries drain, operation power weakens). * Short life cycles (the batteries need to be replaced every few years).Insert HFC forklifts. They address these shortcomings in one broad sweep. Long charging times are reduced to 2 minutes. You don't need any space for battery storage. They always run at constant power. And they often last longer than a few years.Given these inherent advantages, why wouldn't big forklift operators start pivoting to HFC forklifts?They will. Today, Plug Power counts multiple Fortune 500 companies as customers. But, most of those customers have only placed small orders for "testing" purposes. Over the next few years, we will move from the "testing" phase to the "full deployment" stage. Plug Power's dozen small contracts with big companies, will turn into big contracts with big companies, and revenues, margins and profits will soar higher. PLUG Stock May Stay HotSo long as the Plug Power growth narrative remains robust, Plug Power stock should stay hot.That's because PLUG stock is dirt cheap relative to the company's long-term potential.There are about 6 million forklifts deployed in the world, and about 1.5 million bought every year. To-date, Plug Power has only shipped about 28,000 fuel cells. Meanwhile, the total materials handling market measures about $30 billion. Plug Power is due to report only $235 million in billings this year.In other words, Plug Power today is a fraction of what Plug Power could be tomorrow. The valuation on PLUG stock represents this. Plug Power's market cap is just a shade over $1 billion.Thus, if Plug Power does sustain big growth in the $30 billion materials handling industry, PLUG stock will keep soaring. * 10 Recession-Resistant Services Stocks to Buy I think that will happen, given escalating pressures on corporations to cut down on their carbon emissions as well as rising popularity of HFC forklifts based on their workload optimization advantages. Assuming it does happen, and Plug Power hits its five-year financial targets, then my modeling suggests that Plug Power could hit 50 cents in earnings per share by 2025.Based on a market-average 16-times forward earnings multiple, that equates to a 2023 price target for PLUG stock of $8. Discounted back by 10% per year, that implies a 2020 price target of about $6 -- which is more than 50% above where shares trade hands today. Bottom Line on PLUG StockPlug Power stock is a high-risk, high-reward play on continued robust uptake of HFC forklifts in the materials handling industry. I think that will happen, given mounting sociopolitical pressures on corporations to reduce carbon emissions as well as growing cost and productivity advantages associated with HFC forklifts relative to other alt fuel forklifts.If it does happen, then PLUG stock will keep soaring.As of this writing, Luke Lango was long PLUG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Why Plug Power Stock Could Rise 50% This Year appeared first on InvestorPlace.
If Plug Power's going to make it to $1 billion in annual revenue, it's going to need more people. It's started by hiring the executives who will be in charge of bringing on all that new talent.
LATHAM, N.Y., Jan. 21, 2020 -- Plug Power Inc. (NASDAQ:PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, today announced the access.
This may be a strange question to ask of a renewable energy company. But analysts are asking it anyway. Is FuelCell Energy (NASDAQ:FCEL) sustainable? That is, has this maker of hydrogen fuel cells found a niche it can grow into, or are its recent successes a one-time thing? And after we answere these questions, what exactly are the longer-term implications for FCEL stock?Source: Kaca Skokanova/Shutterstock InvestorPlace.com contributor Josh Enomoto remains skeptical. He calls FCEL a "penny stock." He believes its 700% rise since November can't be maintained, especially since fuel cells require expensive materials like platinum to produce.FuelCell Energy had been in a long-term trading range at about 25 cents per share, but opened for trade Jan. 17 around $2.25 with a market cap of $443 million. The catalyst seems to have been a two-year, $60 million deal with Exxon Mobil (NYSE:XOM) involving carbon capture technology. The deal is nearly twice the company's annual revenue.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A New Way to Look At FCEL Stock?The company has been loudly proclaiming that it's no longer a penny stock, according to Nasdaq, ahead of reporting earnings Jan. 22 for the quarter ending in October. * 7 5G Stocks to Connect Your Portfolio To While rival Plug Power (NASDAQ:PLUG) has been pushing fuel cells as a solution for forklifts and other factory vehicles, FuelCell Energy has been aiming at big contracts in the utility and energy space.Fuel cells make energy by combining hydrogen gas with oxygen. Water is the "waste" product. Fuel cells are also quiet, meaning utilities can place them in residential neighborhoods. But the chief source of hydrogen fuel has always been natural gas. Utilities have usually decided just burning the gas is cheaper.While the Plug Power story is easy to understand, if speculative, the FuelCell Energy story is all over the map.Are they offering a way to reduce the carbon footprint of big power plants, as ExxonMobil suggests? Is this a solution for treating wastewater with the biogas found on-site? Or is this a microgrid solution for electric utilities, as FuelCell's latest press release proclaims? Is it all three? Is it also a breath mint? Trust Utilities?FuelCell reported a backlog of $2.1 billion in its third-quarter report, but just $22.7 million in revenue. The backlog resulted in a press offensive, as FuelCell management sought the capital needed to fulfill its orders.The question remains whether the current momentum is sustainable. In theory, I buy all of it. I buy using biogas to produce hydrogen. I buy carbon capture at power plants. I have long supported microgrids as a better way to guarantee electric service.What I've been unable to buy, because of the track record, is the word of oil companies or utility companies that they're serious about climate change. Exxon Mobil, for instance, has been banging the drum on TV for collecting fuel from plants. They were saying the same thing 10 years ago and little has happened. * 10 Cheap Stocks to Buy Under $10 The same is true for utilities. Al Gore wrote about microgrids as the "Electranet" over a decade ago. But PG&E (NYSE:PCG), the most progressive of the big utilities in accepting solar and wind power never adapted this secondary technology. It kept its unitary system with long power lines in place, and went bankrupt when they, predictably, caused forest fires. The Bottom LineI wish I weren't writing this, but FuelCell Energy remains a speculation.The company isn't just offering a succession of press releases. It is trying to execute a long-term strategy that makes sense. But that strategy relies on very big partners staying the course, and utility companies being willing to change.That's the bet you're making when you buy FuelCell Energy stock today. It should be a slam dunk, but sadly it's not.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental thriller Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Is FuelCell Energy's Business Truly Sustainable? appeared first on InvestorPlace.
FuelCell Energy (NASDAQ:FCEL) often gets compared to Plug Power (NASDAQ:PLUG). Although FCEL stock has also had some momentum recently, it's a tenuous comparison.Source: Kaca Skokanova/Shutterstock Both companies ostensibly are "fuel cell" plays, yet their operating models are completely different. After all, Plug Power uses fuel cell technology to power forklifts and other electric vehicles. FuelCell Energy, however, is in the power generation business. Its model sits much closer to Bloom Energy (NYSE:BE) than to Plug Power.That said, from a financial standpoint, the grouping of FCEL and PLUG -- not to mention Bloom Energy and Ballard Power Systems (NASDAQ:BLDP) -- does make some sense. Fuel cell stocks as a whole have been notorious destroyers of investor capital.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBoth PLUG stock and FCEL stock have lost more than 99% of their value from past peaks. FuelCell Energy stock, in fact, is down nearly 99% just in the last five years.The entire sector has just a handful of profitable quarters -- and not a single full year of positive earnings. Fuel cell stocks have always been tantalizing, and seemingly always just a year or two away from finally fulfilling their promise. Disappointment, without exception, has followed. * 10 Cheap Stocks to Buy Under $10 But Plug Power has managed to execute an intriguing turnaround of late, with its shares up 173% over the past year. FCEL stock has seen similar optimism, with shares gaining a stunning 1,500% from a Jun. 26 intraday low.Even with those gains, however, its turnaround is in the earlier stages -- which means it might be the next fuel cell stock to soar, or once again the next to disappoint. The Case for FCEL StockThe gains of late aren't quite as impressive as they seem. The June lows came just before FuelCell itself warned of a possible bankruptcy filing. Shares, somewhat incredibly given the fierce rally of late, still are down 68% over the past year.But FuelCell has delivered reason for optimism. Much of the rally has come since November. Early that month, the company announced a 2-year carbon capture agreement with Exxon Mobil (NYSE:XOM). The same day, the company released details of a $200 million credit facility. Shares doubled on the two pieces of news and would rise a whopping 230% in just seven trading sessions.The next catalyst came just before Christmas. A long-delayed project with Edison International (NYSE:EIX) subsidiary Southern California Edison finally came online. The opening with a 2.8-megawatt facility in Tulare, California came with a 20-year power purchase agreement.As a result, a company that looked like it wasn't going to make it through 2019 without restructuring had an improved balance sheet and a large, legitimate project that would provide revenue for some two decades. The addition of respected partners in Edison and Exxon Mobil boosted the long-term case as well. FuelCell Energy stock again soared.This simply looks like a different, better company than it did six months ago. Bulls might even argue that it looks like a better company than it did a year ago -- when FCEL stock traded near $7 (adjusted for a 1-for-12 reverse split in May). \Even considering substantial dilution from warrants issued in the loan facility, that argument still suggests that shares have a continued rally ahead from the current price just above $2. The RisksIt's in that context that the rally in PLUG stock is perhaps more material than it might seem. The skeptical answer to any rally in pretty much any fuel cell stock is simple: we've been here before. Yes, there's some good news, but there's been good news plenty of times in the past. Investors have always ended up disappointed, and this time won't be any different.But those skeptics would have missed out on the rally in Plug Power stock. And that rally thus likely changes the narrative surrounding FuelCell Energy at the moment. Even though the operating models of the two companies are different, investors may not want to miss out on the "next" big winner in the space, and they may have more willingness to take on the industry's risk than they would have otherwise. The Bottom Line on FCEL StockThat said, history isn't the only risk. FuelCell Energy has a long, long way to go. Long-term adoption of fuel cell technology is far from guaranteed. Battery technology from the likes of Tesla (NASDAQ:TSLA) may better represent the future of "clean" energy.Meanwhile, short-term price movements don't completely negate that history. FuelCell Energy has been around since 1969. The company went public in 1992. It's certainly fair to wonder if there simply is a structural problem with the industry and the business model that suggests long-term profitability isn't on the way. Again, the company has been around for more than 50 years and still is burning cash.That history, as well as the intense competition in the renewable energy space more broadly, is enough to keep me personally on the sidelines. But the market may well see it differently, and at the very least FuelCell Energy has a chance to prove that this time indeed is different. That's more than the company could say just six months ago, and the key reason why FCEL stock has soared.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post FCEL Stock Very Well May Be the Next Renewable Stock to Soar appeared first on InvestorPlace.
Earnings season looms next year at a key point for the market. U.S. stocks are at all-time highs, and need a strong batch of earnings reports to keep the momentum going.Source: Shutterstock That's particularly true for the three stocks featured in Friday's big stock charts. Technically, all three names have clear potential for big moves in the next few weeks. In each case, an important upcoming earnings report represents a catalyst. * 10 Cheap Stocks to Buy Under $10 To be sure, it's not 100% clear in which direction these stocks will head. But for investors willing to firmly pick a side, or traders looking for potential volatility, these big stock charts should be watched closely in the coming weeks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips International Business Machines (IBM)Source: Provided by Finviz IBM (NYSE:IBM) is trying to rally ahead of its fourth quarter earnings report on Tuesday afternoon. But while the first of Friday's big stock charts suggests some cause for optimism, recent history suggests reason for caution: * Technically, IBM stock is at least set up for a rally. Shares have exited a narrowing wedge to the upside, and cleared near-term moving averages in the process. The 200-day moving average has provided resistance that IBM stock will need to move through, but a strong fourth quarter report could provide the required boost. * A strong report is necessary. IBM's acquisition of Red Hat closed in July, and was supposed to allow IBM to finally get back to growth. The company infamously went 22 consecutive quarters without generating year-over-year revenue growth, and returned to declines after breaking the streak in 2017. As a result, IBM stock has gained just 4.7% total over the past decade, while the S&P 500 has nearly tripled. * And so this is an important reason on multiple fronts. The 2020 outlook, which includes a full year of Red Hat, needs to be strong enough to inspire confidence. The chart both reflects and amplifies the fundamental importance of the quarter: trading in IBM stock next week seems likely to set its direction for some time to come. There's a path to challenge July highs around $150 with a beat, and a potential reversal to $125 if IBM disappoints once again. Abbott Laboratories (ABT)Source: Provided by Finviz Abbott Laboratories (NYSE:ABT) has posted much more impressive multi-year performance: shares in fact have more than doubled since late 2016. But resistance has been stiff of late, and Abbott Labs likely needs a strong fourth quarter report on Wednesday morning to break out: * ABT stock certainly is gearing up for another run, with strong performance in recent sessions on decent volume. An uptrend has held since early October and investors quickly bought a small, brief dip last week. For now, anyway, shares certainly are headed in the right direction. * Here, too, it likely takes a strong fourth quarter report for the stock to break out. Abbott will not only detail Q4 results next week, but will give guidance for 2020. Wall Street projects about 11% growth in earnings per share this year, a reasonably high bar to clear. It's too simplistic to argue that ABT will rise if guidance exceeds expectations and falls if it doesn't -- but it doesn't seem too far off. At the least, the second of our big stock charts suggests it will be exceedingly difficult to break out if Abbott can't deliver an above-consensus outlook. * Some help from the market would be useful as well. Abbott unquestionably is a wonderful company, recently increasing its dividend for the 48th consecutive year. But like most wonderful companies in this market, valuation is a question mark: the 24x forward multiple is historically high. If Abbott can deliver a big report next week, that multiple will be less of an issue. If it simply matches expectations, it will need investors to keep paying up for quality. FuelCell Energy (FCEL)Source: Provided by Finviz FuelCell Energy (NASDAQ:FCEL) has been one of the market's best stocks in the past seven months, gaining over 1,500% from late June lows. And the third of Friday's big stock charts suggests the rally could have another leg: * Technically, FCEL stock has established a classic flag formation, with the parabolic gain the "flagpole" and the sideways trading since the flag. Those patterns are continuation patterns, which often lead to another bounce higher after the stock consolidates. A recent "golden cross," in which the 50-day moving average moves above the 200-day, adds to the bullishness shown on the chart. * Click to Enlarge Source: Provided by Finviz That said, taking the broader view, the risks become apparent simply from the chart. Amazingly, FCEL stock is down 65.5% over the past year even after the enormous rally of late. It has declined 98.6% in the last five years. FuelCell Energy has delivered optimism before, but it's always disappointed. * And so FuelCell's fourth quarter report, also on Wednesday, looks exceedingly important. FCEL stock is trying to follow the path of fellow (if different) fuel cell play Plug Power (NASDAQ:PLUG), which has re-inspired investor confidence over the last year. A new agreement with Exxon Mobil (NYSE:XOM) and a game-changing loan agreement seem to have de-risked the story. If FuelCell Energy can deliver a positive quarter and a strong outlook next week, the rally can and should continue.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post 3 Big Stock Charts for Friday: IBM, Abbott Labs, and FuelCell Energy appeared first on InvestorPlace.
Penny stocks are almost always high-risk, high-reward investments. Some of them are worth buying because they have visible and realistic pathways to at least tripling.Source: Tinseltown / Shutterstock.com That's why I've recommended some penny stocks before, like struggling department store operator Stage Stores (NYSE:SSI), Chinese premium electric vehicle maker NIO (NYSE:NIO), and hydrogen fuel cell maker Plug Power (NASDAQ:PLUG); all three of those penny stocks are up several times from their 2019 lows.But most penny stocks aren't worth investors' time or money because they don't have visible or realistic pathways to escaping penny-stock status. One such penny stock is Naked Brands (NASDAQ:NAKD), a largely irrelevant, unprofitable, and indebted intimate apparel company. NAKD stock price has dropped from a split-adjusted price tag of over $80 a year ago to under $2 today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNAKD stock will continue to persistently fall for the foreseeable future because it lacks a clear and convincing pathway to profitability, making the debt load on its balance sheet seem like a ticking time bomb that will ultimately sink NAKD's ship.In other words, there's no reason to buy NAKD stock at this point. Zero is ultimately where this stock will go. Don't try to catch this falling knife on its way to worthlessness. * 8 of the Strangest Stocks Worth Your Time Naked Brands Has ProblemsThere are three big problems with Naked Brands. The first can be summed up succinctly: no one wants to buy what Naked Brands is selling.Naked Brands owns a portfolio of men's and women's intimate apparel brands, including various brands from Heidi Klum, Hickory, Bendon, and others. These brands are largely irrelevant in a a very crowded intimates marketplace that is dominated by L Brands (NYSE:LB), American Eagle (NYSE:AEO), Hanesbrands (NYSE:HBI), and many, many more.During Naked's fiscal 2019, its sales dropped 15% year-over-year, as U.S. retail sales were growing at a steady 3%-4% clip. Through the first half of Naked's FY20, the U.S. retail sales market has continued to grow at a steady 3%-4% clip. At the same time, Naked's sales have continued to plunge, dropping more than 25% year-over-year.In other words, the writing is on the wall for NAKD. No one wants to wear Hickory underwear or Bendon underwear. Considering how small these brands are -- Naked's sales were just $77 million last year -- and also considering how competitive the intimates marketplace is, it is very unlikely that trends will change in favor of NAKD anytime soon.So for the foreseeable future, demand headwinds will continue to weigh on Naked's sales growth. Profits Aren't ComingThe second and third problems with NAKD stock can also be summed up succinctly: Naked Brands won't strike a profit anytime soon, and because of that, the company's high debt will sink NAKD stock.Naked Brands won't be profitable anytime soon. Just look at the numbers. Its revenue is between $60 million and $80 million, with 30% to 35% gross margins, and an annual operating expense rate of about $50 million to $60 million. That combination won't produce profits.In order to become profitable, Naked Brands has to either: 1) essentially double its revenues to $150 million to offset its $50 million in annual operating spending and do so without upping its other expenses, or 2) cut its annual operating spending rate by more than half without losing any revenue.Neither of those things is going to happen. NAKD's sales won't turn the corner because of demand and competition issues. Its expenses won't drop because its management has been unable to cut expenses for several years, and any meaningful cost-cutting today would be accompanied by further sales erosion.As a result, Naked Brands will forever remain unprofitable.That puts tremendous pressure on the company's balance sheet, which features a lot of debt and little cash. Ultimately, if Naked Brands cannot become profitable, debt will sink NAJD, and NAKD stock will drop to zero. The Bottom Line on NAKD StockSome high-risk, high-reward penny stocks are worth buying. NAKD stock is not one of them. The shares of this largely irrelevant, unprofitable, and heavily indebted intimate apparel company aren't worth buying until its management can show that there is a clear and convincing pathway towards profitability and sales stabilization.As of this writing, Luke Lango was long NIO and PLUG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Continue to Stay Away From Naked Brands Stock appeared first on InvestorPlace.
In this article we are going to estimate the intrinsic value of Plug Power Inc. (NASDAQ:PLUG) by taking the foreast...
Plug Power's (PLUG) fuel cell solutions will enable the customer to boost productivity, reduce operational costs and lower greenhouse gas emissions throughout its logistics business.
Shares of Plug Power Inc. soar, after the hydrogen and fuel cell technology company announces a contract win valued at $172 million over two years from a large, unnamed company.
Fuel cells are one of the wonders of our age. They provide power silently, combining hydrogen with oxygen from the air to produce electricity. Water is also produced as a waste product.Source: Shutterstock I have been following the field for a decade, especially Plug Power (NASDAQ:PLUG). But I haven't invested a dime, because the source of the fuel needed to make the "hydrogen cycle" work right now is natural gas. Why use a second-order fuel when the primary fuel is so readily available?But with the new decade comes new hope. Plug Power shares rose almost 8% in pre-market trading on Jan. 6, thanks to a $172 million order from an unnamed Fortune 100 customer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIs it time to go long Plug Power stock? Seeking MarketsA decade ago, fuel cells were being touted for pollution-free transportation and silent back-up for electrical grids. I was republishing charts on a beneficent "hydrogen cycle," solar panels powering electrolysis to separate hydrogen from water and the "pollution" watering plants.Today the dreams are more limited. The new market is warehousing. Forklifts powered by fuel cells can increase productivity 15%, because they don't have to be recharged, just refueled. Plug Power is now talking about achieving $1 billion in gross billings by 2024, and achieving profitability in 2022. * 9 Boring Stocks to Buy You Should Never Let Go Of That would be huge. Plug Power sales for all of 2019 are expected to come in under $200 million. The company is consistently unprofitable and has less cash in the bank than it lost in 2018. As a result, the stock is worth just $1 billion. The company must continually sell new shares to stay afloat. PLUG stock opened for trade Jan. 6 at $3.43 per share, but the stock price has been as low as $2.50 as recently as early 2019. The Bullish CaseThe bullish case is that we're entering the "decade of hydrogen," as InvestorPlace's Will Healy writes. With Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT) and other retailers increasingly breaking bulk at warehouses rather than having customers do it in stores, a new boom may be coming.This would make Plug Power a long-term buy, writes Tom Taulli. He says it's at an inflection point.Luke Lango thinks this could be an $8 stock over the next five years, meaning investors would nearly triple their money. It's a good speculative buy according to Will Ashworth. The Bearish CaseThe problem for me is we've heard this story before.To get from here to profitability, Thomas Niel notes, Plug Power must continually sell new stock. It's not just selling shares to the public. It's offering warrants to its biggest customers.Dilution is why Faisal Humayun remains cautious on Plug Power. The company's big rally during 2019 must be balanced against the company's past failure to deliver.That's why Ian Bezek says it's time to pull the plug on Plug Power stock. Morgan Stanley, the company's lead broker, recently put a $2.75 per share price target on the shares. When your own broker doesn't see upside, what are you hanging around for? The Bottom Line on PLUG StockFuel cells are one of those great ideas that just haven't worked out.The gear works. The numbers don't.Still, I wouldn't give up on Plug Power just yet. Its current goals are modest and achievable. If they do pan out, big profits are possible.If I were 30 years younger, I might put a few hundred shares aside, knowing they could become worthless or they could become very valuable. But I'm not 30 years younger, so this is a path I'm not going to take.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post Plug Power Stock Requires Seriously Long-Term Speculation appeared first on InvestorPlace.
Plug Power said this announcement is key to the Latham-based company achieving its ambitious goal of $1 billion in revenue by 2024.
The hydrogen fuel cell maker touts the deal with what it called a 'material handling' company as a key step toward hitting its 2024 goal of $1 billion in billings.
Shares of Plug Power Inc. charged 5.3% higher in active premarket trading Monday, after the hydrogen and fuel cell technology company said it received a order valued at more than $172 million from a "Fortune 100 customer" at the end of 2019. The contract is for hydrogen fuel cell deployments over the next two years. The company's guidance range for 2019 revenue provided in November was $235 million to $245 million. "This sizable contract signifies continual market validation to customer's rapidly moving material handling business thus far," said Chief Executive Andy Marsh. "We commend this customer for its leadership in hydrogen and fuel cell adoption throughout the logistics business." The stock has more than doubled (up 141%) over the past year, while the S&P 500 has gained 28%.
Plug Power Inc. (PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, received an order at the close of 2019 from a Fortune 100 customer for hydrogen fuel cell deployments across their distribution network over the next two years. This contract, valued at more than $172 million, is for Plug Power’s GenDrive fuel cell power, GenFuel hydrogen fuel, storage and dispensing infrastructure, and GenCare aftermarket service and support. The global total available market for material handling is currently valued at $30 billion.
[Editor's note: This article is regularly updated to include the most relevant information available.]InvestorPlace CEO Brian Hunt recently introduced the concept of "lottery stocks," or high-risk, high-reward stocks that could double, triple, quadruple or more in a hurry. The core concept behind buying these stocks -- risking a little bit of money to potentially make a lot of money, and doing so enough times so that the odds are in your favor -- immediately resonated with me.So, I constructed a portfolio of five lottery stocks in mid-November 2019. That portfolio included hyper-growth hydrogen fuel cell (HFC) maker Plug Power (NASDAQ:PLUG), beaten-up Chinese premium electric vehicle maker Nio (NYSE:NIO), left-for-dead department store retailer Stage Stores (NYSE:SSI), depressed cannabis producer Aurora Cannabis (NYSE:ACB) and disruptive online stylist platform Stitch Fix (NASDAQ:SFIX).InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the five weeks since I constructed this lottery stock portfolio, the returns have been enormous. During this stretch, the S&P 500 rose about 8%. Had you bought $1,000 worth of each one of these lottery stocks, however, you'd be up nearly 80%, or about $4,000 … in just over a month … from a mere $5,000 investment. Had you put $50,000 to work, you'd be up nearly $40,000.Given those numbers, it's fair to say that this lottery stock portfolio worked. In large part, that's thanks to huge outperformance from NIO (up 120%) and SSI (up 280%). * 10 2019 Winners That Will Be 2020 Losers Because of the tremendous success of this late 2019 lottery stock portfolio, I've decided that it's worthwhile to construct another for 2020. Without further ado, then, it's time to look at the best-in-class high-risk, high-reward stocks to own for the next 12 months. Lottery Stocks to Buy for 2020: Canopy Growth (CGC)Source: Shutterstock Current Price: $20Potential 2020 Price: $35At the top of this list of lottery stocks positioned for a big 2020 is Canada's biggest cannabis producer, Canopy Growth (NYSE:CGC).The qualitative part of the bull thesis on CGC stock for 2020 is easy to follow. The headwinds which killed CGC stock in 2019 will evaporate and turn into tailwinds in 2020. Specifically, demand headwinds will turn into demand tailwinds as Canopy gets a boost from new products (vapes and edibles), sustained retail footprint expansion and enhanced logistics. Supply headwinds will also turn into supply tailwinds as Canopy has spent all of 2019 building out huge production capacity. And, U.S. legislation -- which went nowhere in 2019 -- will make meaningful progress in 2020, thanks to a House of Representatives committee recently passing the MORE Act.Because of all that, the damage that CGC stock suffered in 2019 -- down 30% -- is nothing more than a perfect set-up for a big rebound in 2020.How big will that rebound be? Pretty big. At this point in time, Canopy is the clear leader with the most firepower and deepest pockets, in what projects to be a massive legal cannabis market. According to my numbers, that positioning will one day enable the company to turn into a multi-billion dollar revenue company with healthy profit margins. Realistically, I think $5 in earnings per share is a doable target by 2030. Based on a forward earnings multiple of 16 (the market average multiple) and a 10% annual discount rate, that equates to a 2020 price target for CGC stock of nearly $35.The market doesn't see CGC stock in this same light today. That's because of all the 2019 headwinds. But, as those headwinds turn into tailwinds into 2020, the market will start to CGC stock this way. As it does, shares will soar towards $35. Plug Power (PLUG)Source: Shutterstock Current Price: $3Potential 2020 Price: $5One lottery stock in my late 2019 lottery stock portfolio which hasn't panned out yet, but which I think can still be a big winner in 2020, is HFC maker Plug Power.Plug Power makes HFCs, which are the "batteries" for hydrogen vehicles. To date, being the backbone of the hydrogen car market hasn't meant much. Relative to electric vehicles, hydrogen vehicles have been unsafe, expensive and inconvenient. Still, hydrogen vehicles do have their distinct advantages over electric vehicles in terms of range and charge time. Recently, certain industries -- namely, the materials handling industry -- has started to understand that they can deploy hydrogen vehicles while minimizing their disadvantages by: 1) buying them in bulk, and 2) restricting their movement to a warehouse (think forklifts).Consequently, the materials handling industry is starting to buy HFCs in bulk, which is pushing up Plug Power's revenues by a ton. Because this is such a big industry, and because HFC penetration is still relatively low, management thinks that this trend will persist for a lot longer. So much so that they've issued aggressive five-year targets of $1 billion in revenue and $200 million in EBITDA.I'm not sure Plug Power can do that. This management team has a history of over-promising and under-delivering. But, I do think that sustained robust HFC uptake in the materials handling industry will power robust revenue and profit growth over the next several years, and that 45 cents in earnings per share is achievable by 2024. * 7 Stocks to Buy for January and Beyond Based on an exit multiple of 16-times forward earnings and a 10% annual discount rate, that equates to a 2020 price target for PLUG stock of over $5. That's where I think shares will trend over the next 12 months. Nio (NIO)Source: Sundry Photography / Shutterstock.com Current Price: $3.80Potential 2020 Price: $7-$8Chinese premium EV maker Nio was one of my top lottery stock picks for late 2019. Over the last three months of the year, shares have essentially tripled. Fortunately for bulls, I don't think this big rally is over. NIO stock is one of my favorite lottery stocks for 2020, too.NIO stock was killed throughout most of 2019 thanks to three things. First, China's auto market slowed, as China's entire economy slowed on the back of escalating global trade tensions. Second, NIO's delivery volume trajectory went negative in this slowing market. Third, net losses widened as lack of sales growth converged on big expense growth.In late 2019, Nio stock has started to bounce back because those three headwinds have reversed course. China's auto market is now picking up steam as global trade tensions are easing. NIO's delivery volumes grew 35% sequentially in the third quarter -- thanks to a new vehicle launch -- and are expected to rise another 65% in the fourth quarter. And, net loss in the third quarter narrowed year-over-year.All of these favorable developments will continue into 2020. China's auto market will continue to bounce back. Nio's positioning in that market will continue to improve thanks to yet another new vehicle launch, new battery pack launches and a refresh of an old vehicle. Cost-cutting initiatives will continue to bear fruit and converge on renewed sales ramp to drive meaningful margin expansion and healthy loss contraction.All the important financial and fundamental trends should move in NIO's favor in 2020. Assuming they do, my math indicates that this stock could take out the $7-$8 levels next year. Stage Stores (SSI)Source: LM Photos / Shutterstock.com Current Price: $8.35Potential 2020 Price: $10Department store operator Stage Stores, is a stock which has increased more than 15-fold over the past few months. But I still think that SSI stock has more fuel in the tank to run even higher in 2020.The story at Stage Stores is quite simple. For most of the decade, Stage Stores was your typical, antiquated department store operator that was losing the retail game. Along the way, Stage Stores acquired off-price department store operator Gordmans. Nobody blinked when it happened. But, a few years later, Stage Stores management noticed that Gordmans locations were consistently and meaningfully outperforming their Stage Stores locations.So, on the brink of collapse, SSI management proposed something radical. They are now converting all the full-price Stage Stores locations into Gordmans locations.This transition started in 2019. It's worked beautifully so far. The company has rattled off back-to-back quarters of 15%-plus comparable sales growth. The best part? This transition is just getting started. In 2019, the company converted less than 90 full-price stores into off-price ones. In 2020, it will convert more than 500.Essentially, then, this transformation into a successful, growing, profitable off-price retailer is in its first few innings for Stage Stores. As the transition gains mainstream traction in 2020, shares will continue to power higher. My $10 price target is based on my assumption that sales stabilization and margin improvement will drive earnings per share towards 70 cents by 2025. Based on a retail sector average 20-times forward earnings multiple and a 10% discount rate, that equates to a 2020 price target of nearly $10.As of this writing, Luke Lango was long PLUG, NIO, SFIX and CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks That Are Still Worth Buying In 2020 * 7 Strong Stocks to Buy That Won Q3 Earnings * 5 Safety Stocks to Buy Without Trade War Exposure The post 4 Strong Lottery Ticket Stocks That Could Soar in 2020 appeared first on InvestorPlace.
No one has a crystal ball, but if you talk to enough economists and bankers (like we do), you start to build an idea of where the economy may be headed in 2020.
Recently Plug Power (NASDAQ:PLUG) completed an offering of 40 million shares which will raise $104.7 million after the offering expenses. The prospectus also says that the underwriters for Plug Power stock can buy six million more shares at the $2.75 offering price. That would bring in another $16.4 million, according to the prospectus.Source: Shutterstock But here's the thing: The final prospectus is full of dire warnings about the company. If you want to know what could go wrong with a potential investment, always read the "Risk" section of their annual 10-K or prospectus. The prospectus filed on Dec. 6, 2019, has the latest risks. * 6 Transportation Stocks That Are Going Places Let's take a look at some of these, which seem pretty dire.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Risks of Investing in PLUG -- According to the CompanyThe very first risk the company wants you to know is that they have "incurred losses and anticipate continuing to incur losses." The prospectus then states that the company has not achieved profitability in any quarter since its formation. In fact, the company is bluntly honest about its failures:We incurred net losses attributable to common stockholders of $73.8 million for the nine months ended September 30, 2019 and $78.2 million, $130.2 million and $57.6 million for the years ended December 31, 2018, 2017, and 2016, respectively, and had an accumulated deficit of $1.3 billion at September 30, 2019. We anticipate that we will continue to incur losses until we can produce and sell our products on a large-scale and cost-effective basis.The prospectus then goes on to point out all the hurdles that it must cross in order to achieve profitability. It states:If we are unable to successfully take these steps, we may never operate profitably, and, even if we do achieve profitability, we may be unable to sustain or increase our profitability in the future. More Hurdles that Plug Power Stock Has to CrossNow, as if that dire warning is not enough, the company goes further. It points out that there is an issue with the long-term viability of its alternative energy products in the marketplace:… if we are unable to successfully develop future products that are competitive with competing technologies in terms of price, reliability and longevity, customers may not buy our products. The profitability of our products depends largely on material and manufacturing costs and the market price of hydrogen. We cannot guarantee that we will be able to lower these costs to the levels to assure market acceptance in conjunction with other critical customer criteria in performance and reliability.Another major risk is that PLUG cannot guarantee that it will need more financing. This could be either from a debt source or more dilution from equity financing.The prospectus states this in a strange way. Most offering memos state something like the proceeds will allow the company to fund itself for the next 12 months, even if it is losing money.But Plug Power's prospectus gives no such assurances. It does not state if the money raised will last more than one year. That implies there is little faith at the senior exec level that PLUG will pull out of losses anytime soon. Honesty Is the Best PolicyMost people think the prospectus language is just boilerplate legal jargon, but it isn't. The company is required to be deathly honest about its downfalls.In this case, Plug Power goes on to name 13 additional risks that investors should consider before buying Plug Power stock.Here is a statement they made that I found kind of funny:Our management might not apply our net proceeds in ways that ultimately increase the value of your investment …Our failure to apply these funds effectively could have a material adverse effect on our business, delay the development of our products and cause the price of our common stock to decline. History of PLUG Stock Capital RaisesThis is funny since Plug Power has raised over $461 million over the past nine years in equity capital. This includes the amount raised in the most recent offering. Click to Enlarge Source: Mark R. Hake, CFA The table at the right shows that every five years or so Plug Power needs to juice up again with another major capital raise. That includes the most recent capital raise.What does PLUG have to show for all these capital raises? Nothing but losses, by its own admission. And remember, that is over nine years, not two or three or even five years.And Plug Power stock has gone nowhere over the past nine years since 2011, despite all those capital raises.So, it is funny that Plug Power finds the need to warn investors. They know they have to be honest. Management might not apply the proceeds of the capital in a way that raises the investors' investment. That is an understatement.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks, which includes both dividend and buyback yields. In addition, subscribers a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Transportation Stocks That Are Going Places * 5 Bold Stock Market Predictions for 2020 * 3 Beer Stocks to Own Heading Into New Year 2020 The post Plug Power Stock Poses Significant Potential Risks for Investors appeared first on InvestorPlace.