|Bid||3.0300 x 45100|
|Ask||3.0400 x 36900|
|Day's Range||2.9400 - 3.0500|
|52 Week Range||0.9900 - 3.0500|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The project in Germany comes after Plug recently ran a pilot program with FedEx and electric vehicle maker Charlatte America to power FedEx airport ground equipment trucks at airports in Albany and Memphis. The company said it is working with other European airports on similar projects.
Stocks priced under $10 per share may seem cheap on first glance. But stocks with low share prices often end up there because they have gotten hit by heavy selling pressure. Robinhood keeps a running list ...
Marsh to present on hydrogen fuel cell solutions addressing motive and stationary power applicationsLATHAM, N.Y., Oct. 04, 2019 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, is participating in a United Nations side event hosted by ROTH Capital Partners today, October 4, 2019. Plug Power’s CEO Andy Marsh will address UN delegates and Secretariat as well as the private sector and academia representatives. Marsh will showcase the short and long term potential of hydrogen fuel cells in helping member countries achieve the UN Sustainable Development Goals (SDG) by 2030. Plug Power is the global industry leader in hydrogen and fuel cell systems, thus far achieving unmatched accomplishments. Having deployed more than 28,000 fuel cell engines into mobility equipment today, the Company is facilitating and benefiting from paradigm shifts in the transportation and energy industries.Hydrogen fuel cells generate only heat and water as a byproduct of energy generation, allowing users to dramatically reduce the greenhouse gas emissions of their businesses. Marsh’s presentation will not only showcase Plug Power’s proven success in the United States with customers such as Walmart, Amazon, and BMW, but also internationally with users including DHL, Engie and CHEM.According to the Fuel Cells and Hydrogen Energy Association, cars and trucks account for nearly one-fifth of all U.S. carbon emissions, releasing 24 pounds of carbon dioxide and other global-warming gases for every gallon of gasoline used. “In an electrified world, hydrogen fuel cells make a lot of sense in applications that require high-asset utilization,” said Andy Marsh, CEO for Plug Power. “Hydrogen fuel cells can make a significant impact on meeting SDGs from an environmental and economic perspective.”“A global hydrogen vision set by The Hydrogen Council estimates that by 2050 hydrogen will support 19% of global energy demand, creating 45 million jobs,” continued Marsh. “As the world moves to electric solutions, hydrogen and fuel cell power will become increasingly important to achieving sustainability goals.”According to Jesse Pichel, Managing Director of Cleantech Investment Banking at ROTH Capital Partners and also a Board Member of NGO Sustainability Inc., “Traditionally business has been the engine of economic, technological, and social progress, while increasingly contributing to social causes. There is growing consensus that private sector engagement is an indispensable tool for most effective outcomes.”For more information about this event, please send your name, email and affiliation to: email@example.com.About Plug Power Inc. The architect of modern hydrogen and fuel cell technology, Plug Power is the innovator that has taken hydrogen and fuel cell technology from concept to commercialization. Plug Power has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable, cost-effective way. The Company’s GenKey solution couples together all the necessary elements to power, fuel and serve a customer. With proven hydrogen and fuel cell products, Plug Power replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in their distribution centers. Extending its reach into the on-road electric vehicle market, Plug Power’s ProGen platform of modular fuel cell engines empowers OEMs and system integrators to rapidly adopt hydrogen fuel cell technology. ProGen engines are proven today, with thousands in service, supporting some of the most rugged operations in the world. Plug Power is the partner that customers trust to take their businesses into the future. Learn more at www.plugpower.com.Safe Harbor Statement This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc.("PLUG"), including but not limited to statements about PLUG's expectations regarding growth in Europe, revenue, growth with GenKey customers and its project financing platform. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will have been achieved. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, the risk that we continue to incur losses and might never achieve or maintain profitability; the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that a loss of one or more of our major customers could result in a material adverse effect on our financial condition; the risk that a sale of a significant number of shares of stock could depress the market price of our common stock; the risk that negative publicity related to our business or stock could result in a negative impact on our stock value and profitability; the risk of potential losses related to any product liability claims or contract disputes; the risk of loss related to an inability to maintain an effective system of internal controls or key personnel; the risks related to use of flammable fuels in our products; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the risk that our actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our products, including GenDrive, GenSure and GenKey systems; the volatility of our stock price; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to successfully expand internationally; our ability to improve system reliability for our GenDrive, GenSure and GenKey systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; risks associated with potential future acquisitions; and other risks and uncertainties referenced in our public filings with the Securities and Exchange Commission (the “SEC”). For additional disclosure regarding these and other risks faced by PLUG, see disclosures contained in PLUG's public filings with the SEC including, the "Risk Factors" section of PLUG's Annual Report on Form 10-K for the year ended December 31, 2018. You should consider these factors in evaluating the forward-looking statements included in this presentation and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information.Media Contact Ian Martorana The Bulleit Group (415) 237-3681 firstname.lastname@example.orgSOURCE: PLUG POWER
I've said it before on InvestorPlace, and I'll say it again: stocks in the under-$10 group typically aren't great stocks. After all, stocks don't IPO or hit the public markets at that kind of price tag. Thus, if a stock is below $10, it is because investors sold the stock off to that level. Usually, such intense selling to below $10 is sign of glaring fundamental weakness.Having said that, there are some hidden gems in the under-$10 group of stocks. All of these stocks have gone through rough times. But, not all of them will go through rough times forever. Fundamentals aren't static. They are dynamic. They can change from good to bad, and from bad to good. When the fundamentals for a sub-$10 stock change from bad to good, you usually get big returns in that stock because it was so beaten up to begin with.But when warnings signs begin flashing, investors need somewhere secure to grow their money. During the financial crisis, investors naturally panicked as the markets plunged, while a small group of traders were able to actually profit. An aversion to losses can be beneficial, but it can also cause you to hold on to losers too long and sell winners too soon. By investing in bulletproof stocks, you can shut off that part of your investing brain that tells you to panic.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith that in mind, I have identified seven stocks under $10 which have been beaten up, but look ready to benefit in a big way from improving fundamentals over the next few quarters to years. In other words, these are depressed stocks which have enormous rebound potential in the foreseeable future. * 7 Worst Stocks in the S&P 500 in 2019 Who made the cut? Let's take a closer look at potential stocks to buy under $10. Stocks to Buy Under $10: General Electric (GE)Source: Jonathan Weiss / Shutterstock.com Once one of the most valuable and important companies in the world, industrial giant General Electric (NYSE:GE), has tumbled over the past several years. Now the company is a shell of its former self. About 20 years ago, this was a $50 stock. Today GE stock trades below $10.GE stock has tumbled to below $10 for a good reason. The business became overly complicated and convoluted, and once one of the moving parts in the GE machine started deteriorating, the whole machine started to fall apart. At the same time, in order to build the big and overly complex GE machine, GE took out a ton of debt, so when GE's businesses started to shrink over the past several years, they did so against the backdrop of an overly levered balance sheet -- which just made everything worse.But, everything could get better over the next few quarters to years. That is, General Electric is dramatically simplifying its operations by shedding non-core, unprofitable businesses and assets. The company is taking the proceeds from those business and asset divestitures to pay down debt. Thus, GE going forward is going to be simpler, more profitable, and less indebted. Ultimately, that means GE is turning into a better business, which should be rewarded with a higher multiple and bigger earnings power -- a combination which produces a bigger stock price for GE.Consequently, at current levels, GE stock looks fairly compelling. This beaten up company is doing everything right to make things better. As things do get better over the next several quarters to years, GE stock should bounce back. Ford (F)Source: overcrew / Shutterstock.com Much like General Electric, auto giant Ford (NYSE:F) is a fallen U.S. business titan that presently looks like a shell of its former self.Once upon a time, Ford was one of the most important auto companies in the world. Sales were growing, market share was expanding, margins were big and only getting bigger, and profits were sizable. Now, the exact opposite is happening. Ford simply lost touch with the auto market and got passed by more innovative peers. Sales and market share are dropping, margins are getting squeezed, and profits are small.Ultimately, Ford stock has gone from above $15 earlier this decade to below $10 today.But, the future will be much better for Ford than it was in the past, mostly because Ford is finally starting to innovate. Ford is going to massively electrify its vehicle portfolio over the next five years, including launching hybrid and electric versions of the company's very popular pick-up trucks. This vehicle portfolio electrification will make Ford's cars more relevant in today's marketplace than they have been in several years, drive greater consumer awareness and demand, and ultimately lead to higher sales, margins, and profits. * 7 Triple-'F' Rated Stocks to Leave on the Shelf At 6.6 times forward earnings, Ford stock isn't priced for higher sales, margins, and profits. As such, if electrification does drive all three of those things, Ford stock should shoot higher from here. Plug Power (PLUG)Source: Shutterstock Third of this list of stocks to buy under $10 is hydrogen fuel cell maker Plug Power (NASDAQ:PLUG).PLUG stock is perhaps most infamous for being one of the few stocks which has, quite literally, lost 99.9% of its value over the course of the past twenty years. That's not a great thing to be know for, and it happened because while there was promise for hydrogen technology early in the auto market, such promise has all but disappeared. Electric batteries became the viable alternative fuel source, and hydrogen cells became an afterthought. As they became an afterthought, Plug Power became irrelevant.That's changing now. Plug Power has rattled off consistent 20%-plus revenue growth over the past three years, as hydrogen fuel cells are starting to be adopted in bulk in the commercial market. Sure, the consumer hydrogen market remains sluggish because of infrastructure shortcomings. But, such shortcomings aren't as important for the commercial market, where a lot of vehicles are operated on-site. As such, big enterprises are starting to come around to the benefits of hydrogen fuel cells, which is that they last longer and have shorter recharging times than their electric battery counterparts.Can the commercial hydrogen market maintain red-hot momentum, and can Plug Power continue to fire off 20%-plus revenue growth with big margin expansion? Management thinks so. They just laid out an aggressive five-year target which calls for huge revenue growth and even bigger margin expansion into 2024. If Plug Power does hit those aggressive targets, then PLUG stock could soar from here. VipShop (VIPS)Source: madamF / Shutterstock.com Fourth, we have Chinese discount e-retailer VipShop (NASDAQ:VIPS), which appears to be getting its winning stride back.China's economy started slowing in late 2017 and early 2018. Around that same time, the VipShop growth narrative started to slow dramatically. In late 2017, this was a near 30% revenue growth company. Throughout 2018, VipShop's quarterly revenue growth rates slowed to 25%, 18%, 16%, and 8% by the end of the year. In early 2019, revenue growth slipped 7%.In mid-2019, though, this slowdown has reversed course. Last quarter, VipShop reported 10% revenue growth -- its first sequential revenue growth acceleration quarter in a long time. This improvement makes sense. Multiple signs are emerging that China's consumer economy is finally starting to stabilize and improve again. At the same time, the fundamentals underlying China's digital economy remain favorable, and VipShop dominates the secular demand off-price niche in that market. * 8 Dividend Stocks to Buy for a Recession Big picture: things are looking up for VipShop. So long as this company continues to dominate the off-price niche, and so long as Chinese macro-economic conditions continue to improve, then VIPS stock should stay on its winning path -- it's already up 70% year-to-date. Aphria (APHA)Source: Shutterstock Fifth on this list on stocks to buy under $10 is Canadian cannabis producer Aphria (NYSE:APHA). Aphria is best known as the first cannabis company to strike a profit in the very profit-barren cannabis market. How did Aphria do this? They focused on becoming the lowest cost supplier in the market.They spent all their resources on figuring out how to reduce the cash cost to produce a kilogram of cannabis. They did just that, and the company now has the lowest unit cash costs in the business. The result? Aphria is able to sell a bunch of cannabis at discount prices into the market, and yet still net a profit on those discounted prices because the production costs are so low.To me, this sounds a lot like Aphria is becoming the "discount" player in the cannabis market. That's a valuable niche to dominate. Regardless of the economic environment, consumers are always attracted to low prices. Thus, so long as Aphria can continue to dominate the low price end of the cannabis market, this company will guarantee itself a slice of the global cannabis pie at scale -- which could be quite large.In the long run, then, the bull thesis here is that Aphria leverages its low cost production capabilities to become the discount leader in what projects as a several hundred billion dollar cannabis market at scale. If things do play out like that, then APHA stock should soar in the long run. GameStop (GME)Source: Emil O / Shutterstock.com Perhaps the most depressed and hated stock on this list is video game retailer GameStop (NYSE:GME), and with good reason.Let's not over-complicate things here. In the long run, GameStop is doomed. This is the Blockbuster of the video game world, so as the video game world moves into all-streaming, all-the-time, then GameStop will become irrelevant because no one will need to buy physical video games anymore. This is the inevitable outcome for GameStop, so it makes sense that GME stock has lost over 88% of its value over the past five years.But, on the way to the graveyard, GameStop should be able to generate tremendous value. That is, the physical video game segment isn't dead yet, nor will it be dead anytime soon. Instead, the physical video game market could actually go through a few big growth years over the next several years. Why? In 2020, new video game consoles are coming to the market for the first time since 2013. Consumers will need to buy those video game consoles, and some of those consumers will buy those consoles at GameStop. Further, these new consoles are going to have physical disk drives, so physical video game sales should surge in 2020 and 2021, too. * 10 Cheap Dividend Stocks to Buy The implication? GameStop is doomed in the long run, but the next few years could be really good for the company. GME stock is not priced for the next few years to be pretty good. As such, it looks like GME stock has healthy upside potential over the next few years. Bed Bath & Beyond (BBBY)Source: Shutterstock Last, but not least, on this list of stocks to buy under $10 is beaten up big box retailer Bed Bath & Beyond (NASDAQ:BBBY).For the longest time, I was anti-BBBY. My thesis was simple: The likes of Walmart (NYSE:WMT), Target (NYSE:TGT) and Amazon (NASDAQ:AMZN) have become all-in-one shopping destinations, and in becoming so, have encroached on Bed Bath & Beyond's territory.Bed Bath & Beyond hasn't been able to defend itself well, since all of those retailers have more resources and reach than BBBY, so they've built out bigger and better e-commerce businesses, omni-channel operations, and delivery logistics, the sum of which has caused customers to leave Bed Bath & Beyond stores in favor of Walmart, Target and Amazon.BBBY stock is down nearly 20% year-to-date, which is as bad a run as any. Investor psychology says that most will let their losses accrue as they believe, irrationally, that they must be due for a "break." Logically, this is a fallacy that destroys capital. Through intelligent reasoning, however, savvy investors can seperate losses from opportunities and build a "bulletproof" portfolio in the process.And I think this bear thesis has run its course.Bed Bath & Beyond is finally taking action to stabilize its rapidly falling revenues, margins and profits, through pulling back discounts, refreshing stores and enhancing its omni-channel presence. In the medium-term, these initiatives should stabilize sales, improve margins and provide a lift to profits. Indeed, consensus Street estimates actually call for EPS to rise over the next few years.BBBY stock trades at almost 5 times forward earnings. That's a zero growth valuation. Thus, if earnings do rise over the next several years, BBBY stock should benefit from a double tailwind of that earnings growth coupled with multiple expansion.As of this writing, Luke Lango was long F, APHA and GME. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Worst Stocks in the S&P 500 in 2019 * 7 Reasons to Own Intuit Stock -- The Unsung Hero of Fintech * Apple and 4 Other Tech Stocks on the Move The post 7 Stocks to Buy Under $10 appeared first on InvestorPlace.
Shares of hydrogen fuel-cell maker Plug Power (NASDAQ:PLUG) are probably most infamous for losing a jaw-dropping 99.9% of their value from 2000 to 2019. But, PLUG stock is making headlines recently for much better news.Source: Shutterstock Year-to-date, Plug Power stock is up 130%, including a 35%-plus rally in the past month alone. In other words, a stock best known for its secular losing streak has found a winning stride in 2019. The big question now: will this winning stride continue?I think it could. The hydrogen fuel-cell market continues to be sluggish in terms of consumer market adoption. But, on the commercial side, meaningful progress is being made, and this meaningful progress is powering robust revenue growth and margin expansion at Plug Power.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf these trends persist for the foreseeable future, and there's a reasonably high chance that they will, then PLUG stock should continue to march higher.The investment implication? If you have the appetite for a high-risk, high-reward stock and believe in the future of hydrogen technology, PLUG should be on your radar. Commercial Market Momentum Looks GoodWhen it comes to Plug Power stock, it's all about the hydrogen fuel cell market. That market has its positives and negatives. Up until now, the negatives have largely outweighed the positives. * 7 Triple-'F' Rated Stocks to Leave on the Shelf Now, the positives are starting to outweigh the negatives, and the market looks positioned for healthy growth over the next several years.Long story short, alternative fuel has been a big movement over the past several years as carbon emission problems with traditional fuel sources have been highlighted as a big threat to the global ecosystem. In response, the market has birthed two alternatives - electric cars, and hydrogen cars. The former gets all the hype, mostly because the latter is less efficient, less safe, and lacks sufficient infrastructure to make it a viable alternative.But, hydrogen fuel cell technology is starting to turn a corner. Somewhat. On the consumer side, adoption remains sluggish thanks to those three aforementioned headwinds. But, in the commercial market, big enterprises are increasingly starting to see hydrogen as a superior alternative to traditional fuel and electricity, because hydrogen fuel cells last longer and have shorter refueling times.The numbers speak for themselves here. In 2016, Plug Power revenues dropped 20% year-over-year. In 2017, they rose 20%. Revenues rose 75% in 2018, and are up 20% year-to-date in 2019. The implication? Although hydrogen fuel cells have been slow to catch on, they are finally catching on, and in a big way.Will this trend continue? Probably. The explosion of alternative fuel sources is a secular growth narrative. In that secular growth narrative, electric cars will be the Batman. But hydrogen cars should emerge as a solid Robin. In this sense, Plug Power may be in the early innings of a long term growth ramp. Plug Power Stock Has Big UpsideIf the hydrogen fuel cell market ramp does persist over the next several years, then PLUG stock has substantial upside from current levels.Management just laid out a five year growth plan wherein the company is going to leverage HFC expansion in its core commercial end-markets to drive revenues towards $1 billion and EBITDA towards $200 million by 2024. That would represent huge growth from 2019's projected bases of ~$230 million in revenue and ~$1.3 million in EBITDA, according to Street consensus estimates.Will Plug Power actually grow revenues at a 30%-plus clip and EBITDA at a near 200% clip into 2024? Probably not. It pays to remember that, back in 2015, this same management team said that Plug Power would report $500 million in revenue by 2020 on 35% gross margins.Last year, revenues were just $175 million, and gross margins were at 1.5% - neither are on track to hit those aggressive targets from 2015. Instead, 2020 revenues will likely shake out around $300 million (40% shy of the target), while gross margins may get to 30%, at best.In other words, investors should take management's call for $1 billion in revenue and $200 million in EBITDA by 2024 with a grain of salt. It probably won't happen.The good news is that PLUG doesn't need $200 million in EBITDA by 2024 to rally from here. In reality, Plug Power will likely leverage commercial market expansion and margin expansion to drive revenues and EBITDA towards $600 million and $100 million by 2024, respectively. Still, that combination should produce around $0.35 in EPS in 2024.Based on a 16-times forward earnings multiple and a 10% discount rate, that equates to a 2019 price target of nearly $4. That is way up from today's sub-$3 price tag. Thus, even if Plug Power only accomplishes a fraction of its aggressive five-year targets, the stock should work from here. Bottom Line on PLUG StockIt appears the hydrogen fuel cell market, while still speculative, is gaining momentum and traction. If this momentum persists over the next few years, Plug Power will report consistently robust revenue and profit growth, and all that growth should ultimately propel PLUG stock higher from today's depressed levels.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post Why Recent Strength in Plug Power Stock Could Last appeared first on InvestorPlace.
In the stock market, risk and reward are correlated. That is, across all financial markets, the maxim is that as risk goes up, so does reward. Because of this, you won't find many low-risk stocks with multi-bagger potential. Instead, all the stocks with multi-bagger potential are often also accompanied with big risks.Thus, if you're looking for a multi-bagger stock that could rise 200% or more, it's safe to say that you are looking at stocks with big risk profiles.The key in picking winners in this group is to identify the stocks that are more likely to go boom than bust. That is, find the stocks where the upside is compelling enough -- and the probability of the stock realizing that upside is high enough -- to more than compensate for the risks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Triple-'F' Rated Stocks to Leave on the Shelf Don't have the time to do all that analysis across hundreds of small cap stocks? No worries. I've done some of that leg work for you. Without further ado, then, let's take a look at 5 small cap stocks that could soar 200% or more over the next five years. Plug Power (PLUG)Source: Shutterstock Current Price: $2.80Potential 2024 Price: $12Five Year Upside Potential: ~330%First up, we have hydrogen fuel cell maker Plug Power (NASDAQ:PLUG). Most infamous for its 99.9% decline from 2000 to 2019, PLUG stock actually now has all the ingredients of a potential multi-bagger over the next few years.Here's the logic. Hydrogen fuel cell technology has lagged electric battery technology in terms of alternative fuel adoption for several years. But hydrogen tech is starting to catch on. This is especially true in the commercial market, where large enterprises are starting to value the longer life and shorter re-charging times hydrogen fuel cells offer versus their electric battery counterparts. This is largely why Plug Power had reported 20%-plus revenue growth since 2016.Management expects this big growth to continue, driven by expansion of HFC adoption in core commercial markets. Specifically, management is pointing towards $1 billion in revenue by 2024, with $200 million in EBITDA. Is that possible? Yes, but unlikely. Nonetheless, if Plug Power does hit those aggressive targets, the numbers shake out for the company to net about $0.50 in EPS by 2024 and likely somewhere around $0.60 in EPS by 2025.Apply a growth stock average 20-times forward multiple to that $0.60 EPS base in 2025. That implies a 2024 price target of $12, which means that in an "everything goes right" scenario, PLUG stock could rally more than 300% from here over the next few years. Aphria (APHA)Source: Shutterstock Current Price: $6Potential 2024 Price: $24Five Year Upside Potential: ~300%Next up, we have small-cap Canadian cannabis producer Aphria (NASDAQ:APHA). Aphria is most famous on Wall Street as being the first Canadian cannabis company to strike a profit. But the company -- and stock -- could be so much more than that in the long run.Consider this. Most company and analyst estimates peg the global cannabis market as growing to $200 billion in annual revenues within the next 10 to 15 years. Let's call it 15 years. Thus, Aphria is at the epicenter of a market that will be $200 billion large in 15 years.Sure, Aphria isn't a big player in that market. But they have a unique and established value prop as the low cost, discount player in the market. That value prop has enduring demand. So long as Aphria maintains that value prop and dominates the discount cannabis niche, this company will forever command a respectable share in the cannabis market.Extrapolate it out. Maybe Aphria nets just 2% share in 15 years. In a $200 billion market, that equates to about $4 billion in revenue. The company already has sky high gross margins. They should pan out around 55% at scale, while big revenue growth will drive the opex rate down to a much more normal 30% in the long run. Therefore, with Aphria, we are talking about a company that within 15 years, could net 25% operating margins on $4 billion in revenue. * 8 Dividend Stocks to Buy for a Recession Net net, that combination makes $3.50 in EPS seem doable in 15 years. Based on a market average 16-times forward multiple, that implies a 14-year-forward price target for APHA stock of $56. Discounted back by 10% per year, that equates to a 5-year-forward price target of $24 -- about 300% above today's price tag. Jumia (JMIA)Source: Shutterstock Current Price: $10Potential 2024 Price: $30Five Year Upside Potential: ~200%The third stock on this list of potential multi-baggers is African e-commerce company Jumia (NYSE:JMIA).The bull thesis on JMIA stock is that Jumia turns into the JD.Com (NASDAQ:JD) of Africa. That is, with an internet penetration rate that is only 40% but rapidly rising, Africa appears positioned for a digital economic renaissance in the 2020s that will look very similar to China's digital economic renaissance of the 2010s, which birthed many multi-billion dollar companies, like Chinese e-commerce juggernaut JD.Here are the numbers. China will close the decade at 60% internet penetration, after starting the decade around 40% internet penetration. Let's say Africa follows a similar 40% to 60% internet penetration ramp in the 2020s. At the same time, Africa projects to have the fastest growing population in the 2020s, and that population skews young. The implication? Of the 1.7 billion people that are projected to be in Africa by 2030, around 1 billion will be on the internet, and those 1 billion will largely skew young and therefore be highly engaged in the digital channel.Let's say Jumia controls just 10% of that market, for 100 million active buyers Let's also say that those buyers spend a very pedestrian $400 per year on Jumia, versus the thousands per year consumers spend on Amazon (NASDAQ:AMZN). That would give Jumia a $40 billion gross merchandise value by 2030, which with a historically average 15% take rate, equates to $6 billion in revenue.Further assuming Amazon-like 5% operating margins, that should flow into $300 million in operating profits, which should easily flow into $200 million-plus in net profits. Based on a growth stock average 20-times forward earnings multiple, that implies a $4 billion valuation by 2029. On 80 million shares, you are talking a $50 price target by 2029. Using a 10% discount rate, that equates to a $30 price target by 2024. New Age Beverages (NBEV)Source: Toshio Chan / Shutterstock.com Current Price: $3Potential 2024 Price: $15Five Year Upside Potential: ~400%The fourth stock on this list of potential small-cap multi-baggers is healthy beverage company New Age Beverages (NASDAQ:NBEV).New Age Beverages is trying to be the world's leading healthy beverage company. It hasn't worked out so far. Just look at NBEV stock over the past year. The chart isn't pretty. But thanks to a series of acquisitions, New Age Beverages has finally equipped itself with a respectable portfolio of healthy beverages that appear to be on the up and up, including Marley, Coco-Libre, Bucha Live Kombucha, Evian water and Illy coffee. New Age Beverages has consequently reported very healthy mid to high single digit organic sales growth so far in 2019.I don't see secular health awareness trends going anywhere anytime soon. These trends should create a rising tide which will lift most boats in the healthy beverage market, including New Age's healthy drinks. Further adding firepower to the top-line will be New Age's push into CBD-infused beverages in the very big U.S. cannabis market.Big picture -- the stars have aligned for New Age Beverages to report steady low double digit revenue growth over the next few years. Alongside that healthy revenue growth, margins will move higher because of positive operating leverage and gross margin expansion from a push into higher margin products. Assuming double-digit revenue growth and margin expansion, EPS here should reach around $0.75 by 2025. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Throwing a consumer discretionary sector average 20-times forward multiple on that $0.75 EPS target, we arrive at a 2024 price target for NBEV stock of $15. That is five-fold the current price tag on the stock. NIO (NIO)Source: xiaorui / Shutterstock.com Current Price: $3Potential 2024 Price: $14Five Year Upside Potential: ~370%Last, but not least, on this list of potential breakout small-cap stocks is Chinese luxury electric vehicle maker NIO (NASDAQ:NIO).Often called the Tesla (NASDAQ:TSLA) of China, NIO hasn't quite lived up to that reputation. Say what you will about Tesla, but from day one, the company's delivery volumes have been on the up and up, and the company has consistently grown reach, deliveries and revenues over a multi-year period.The same has not been true over at NIO. NIO started delivering luxury electric vehicles about a year ago. They company started off red hot, delivering 3,600 vehicles in 3Q18 and nearly 8,000 cars in 4Q18. But the growth narrative has come undone in 2019 amid a massive slowdown in China's auto market, and NIO's quarterly delivery volumes are at 3,500 today… and rapidly dropping.In the big picture, there are simply way too many EV companies in China, and as the market cools, it is consolidating around a few players. The implication is that most Chinese EV companies will go bust, and a few will go boom. Probabilities say NIO goes bust, hence the $3 price tag for NIO stock. But given that this company has crafted a niche for itself in the luxury market, there is a possibility NIO goes boom.Let's say it does go boom. I think China's auto market hits 30 million cars by 2030 and that 25% of those will be EVs -- so about 7.5 million EVs. NIO can maybe control 5% of the market, implying around 375,000 annual deliveries. Assuming a $50,000 ASP and auto average 10% operating margins, I think that production volume easily flows into about $1.40 in EPS by 2030.Assuming a market average 16-times forward earnings multiple, $1.40 in 2030 projected EPS should produce a 2029 price target of over $22. Discounted back by 10% per year, that equates to a 2024 price target for NIO stock of roughly $14 -- almost 400% above today's price tag.As of this writing, Luke Lango was long APHA, JD, AMZN and TSLA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post 5 Small Cap Stocks That Could Soar 200% appeared first on InvestorPlace.
Plug Power (NASDAQ: PLUG ) has unveiled its five-year plan to position the company to deliver $1 billion in sales by 2024, $170 million of operating income, and $200 million of adjusted EBITDA. The plan ...
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A. O. Smith (AOS) suffers from challenging market conditions in China, forex-related woes, expenses on innovation and rise in raw material costs.
FuelCell Energy's (FCEL) third-quarter fiscal 2019 revenues increase on a year-over-year basis owing to license agreement with ExxonMobil.
[Editor's note: "The 7 Best Penny Stocks to Buy" was previously published in July 2019. It has since been updated to include the most relevant information available.]Penny stocks are often dangerous stocks to buy for individual investors. Generally described as stocks with a price under $5, the group usually consists of quite a few fallen angels and growth stocks that haven't reached, and may never reach, their potential.But there are good penny stocks to buy. During the financial crisis, several stocks hit penny stock status and then rebounded tremendously. Pier 1 Imports (NYSE:PIR) went from 13 cents to over $20 before a long decline the past few years. Dollar Thrifty Automotive bottomed at 60 cents, and sold itself in 2013 to Hertz (NYSE:HTZ) for $87.50 a share.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Those penny stocks to buy are more difficult to find in a market near all-time highs, but they're still out there. Here are seven penny stocks to buy that could provide solid returns for investors going forward. Chesapeake Energy (CHK)I've had an on-again, off-again attraction to Chesapeake Energy (NYSE:CHK) over the past couple of years.Source: Shutterstock Chesapeake is still trying to recover from the oil and gas bust that left it with nearly $10 billion in debt and much lower revenues. Progress has been choppy, both for the business and the stock. CHK stock is now trading at $1.55, down 29% this year alone.Investors need to understand the risks here. The debt is a concern, particularly if oil and/or gas prices start falling again. Earnings reports have picked up recently, with CHK beating or meeting earnings consensus in the past eleven quarters.Further, a continuation of oil's move higher should disproportionately benefit CHK stock relative to a major like Exxon Mobil (NYSE:XOM). In short, CHK now looks like a classic penny stock with high risk and high reward, even if long-term shareholders certainly would prefer that it wasn't. Castle Brands (ROX)To be honest, I'm not completely sold on Castle Brands (NYSEAMERICAN:ROX) at its current price of $1.26.Source: Shutterstock And with ROX stock up just about even over the past year, it certainly seems like the market has determined the stock was trading at a fair value. That said, there's still some good news here, and it's still an interesting play on U.S. spirits.Castle's Gosling brand creates both dark rum and ginger beer, which make the increasingly popular "Dark 'N' Stormy" drink. The Jefferson bourbon brand continues to grow nicely, with Castle's whiskey portfolio (which includes smaller Irish offerings) growing revenue 20% in fiscal 2018. * 7 Tech Industry Dividend Stocks for Growth and Income Profits still are slim, but margins are increasing as revenue continues to grow. Management is well-incentivized to continue that growth. And the clear end game here is a sale to a larger spirits company like Diageo (NYSE:DEO) or Constellation Brands (NYSE:STZ, NYSE:STZ.B).If ROX stays on its current trend, it should be able to eventually jump-start a rally. Sportsman's Warehouse (SPWH)Sportsman's Warehouse (NASDAQ:SPWH) makes this list even though its current price of $4.08 is just below the $5 penny stock cutoff limit. But SPWH does look like a nice value here.Source: M01229 via FlickrSPWH briefly shook off the penny stock moniker when it topped out at $6.36 briefly in February before falling to its current levels. And yet, SPWH trades at just 7.5X next year's consensus EPS.There's a lot to like here, particularly for investors bullish on brick-and-mortar retailers. If those investors like low-handle stocks, all the better. Limelight Networks (LLNW)Limelight Networks (NASDAQ:LLNW) has executed a nice turnaround of late, and LLNW stock has responded in kind.Source: Shutterstock The internet content delivery provider is a small fish compared to industry leader Akamai Technologies (NASDAQ:AKAM), but it's making progress. Revenue is expected to rise 1% this year and 12% the next, with earnings growing at a long-term rate of 15%.LLNW stock looks rather expensive on a P/E basis, but margins are thin and EV/EBITDA multiples are favorable. With a recent surge to $2.46, a continuation of the recent trend should drive upside in the stock. * 10 Companies Using AI to Grow With Akamai rebounding amid easing of some industry-wide concerns -- notably customers like Netflix (NASDAQ:NFLX) and Facebook (NASDAQ:FB) choosing DIY options -- Limelight is positioned to keep double-digit revenue growth intact. That will boost margins and profits -- and likely get LLNW stock out of the penny stock category altogether. Plug Power (PLUG)Clean energy historically has been a graveyard for investor capital, and hydrogen vehicle developer Plug Power (NASDAQ:PLUG) hasn't been any different.Source: Shutterstock The stock trades well below peaks from last decade, and is down about 60% from early 2014 levels as well. This year alone, however, it's up more than 60%So PLUG stock's bull case is a classic "this time is different" argument, which is always tenuous. But there is some good news here.Plug Power has signed deals with Walmart (NYSE:WMT) in 2014 and with Amazon.com (NASDAQ:AMZN) in 2017. What's more, it joined forces with FedEx (NYSE:FDX) in May 2017.The company remains unprofitable, but cash burn is slowing, and the company is guiding for profits in the second half (albeit with a ton of adjustments; GAAP earnings remain a long way off). Revenue is growing quickly, with gross revenue growth of nearly 40% expected this year.PLUG has pivoted toward industrial applications, and there is some promise there. Investors in PLUG stock will have to be patient, have to tolerate volatility and have to accept risk. But if Plug Power finally can gain some traction, the current share price around $2.17 could move much higher. DHX Media (DHXM)DHX Media (NASDAQ:DHXM) has had an ugly one-year period as a stock, down 34%.Source: FlickrDebt continues to be a problem for DHX Media, with a debt-equity ratio of 115%! But at $1.22, with a market cap around $365 million, there is some reason for optimism.First, DHX added the Peanuts intellectual property to its portfolio in a deal with Iconix Brand Group (NASDAQ:ICON).That adds to the existing portfolio of Teletubbies, Inspector Gadget, Yo Gabba Gabba! and YouTube content provider WildBrain. DHX then sold 39% of Peanuts to Sony (NYSE:SNE), allowing it to reduce debt while bringing a high-quality partner on board. * 7 "Boring" Stocks With Exciting Prospects The company also undertook a strategic review, as DHX looked to further drive cost savings and reduce debt. And in a cord-cutting world where content may become increasingly valuable, the company should have some options.This is a high-risk play, as the long decline in its chart shows. ICON has dropped over 99% in the past five years due to too much debt and too weak a portfolio. But DHX should be able to avoid that fate . and potentially drive nice gains in DHXM stock. Denison Mines (DNN)I'm not a fan of mining stocks, as I've written in the past. But if investors want to take a stab at the sector, then small, developing miners traditionally offer the best chances for big gains. And Denison Mines (NYSEAMERICAN:DNN) fits that bill.Denison's properties are located in the Athabasca Basin, in northern Canada (Alberta and Saskatchewan). It's targeting uranium resources at its properties -- and uranium prices are starting to tick up.The closure of a mine by giant Cameco Corp (NYSE:CCJ) presents a near-term catalyst to those prices -- and the discounted fair value of Denison's mines.Obviously, there is a ton of risk here. Denison is unprofitable, and likely will need to raise more capital down the line. But DNN actually could provide what mining stocks are supposed to: leverage to the price of uranium.With fundamentals perhaps supporting some upside in the metal, DNN could follow.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post The 7 Best Penny Stocks to Buy appeared first on InvestorPlace.
Plug Power (NASDAQ:PLUG) reported record second-quarter deployments and gross billings on August 6. PLUG stock, however, dropped on the news but has since recovered those losses.Source: Shutterstock As speculative, money-losing stocks go, Plug Power stock is a pretty good one. It's operating in an industry that will continue to get busier as the demand for alternative fuel sources rises.In May, I suggested that if you owned PLUG stock prior to it announcing Q1 2019 earnings, and you were in it for the long haul (three to five years), I'd continue to hold. Moreover, I recommended buying some more if it dropped on the news, which it did.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince then, it has recovered its post-earnings losses. But despite excellent Q2 2019 results, the PLUG stock price struggles to hit $3. * 10 Marijuana Stocks That Could See 100% Gains, If Not More If Plug Power stock wants to make it to $3 and beyond, here's the reality: it'll have to move beyond Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) to do so. On-Road GrowthPlug Power is best known as a provider of fuel-cell systems to the logistics industry. Amazon, Walmart, and many others use them in forklifts and other machinery at their e-commerce warehouses.However, if it wants to grow to become a profitable business, it's got to find other markets to sell its first-rate products.As part of its Q2 press release, PLUG discussed how it had obtained its first on-road customer during the quarter. The alternative-energy company signed a deal with StreetScooter, a subsidiary of DHL.StreetScooter will deliver 100 ProGen hydrogen fuel cell-powered trucks to be used by Deutsche Post DHL starting in 2020. It's the first commercial-scale application of fuel-cell engine deployment for on-road logistics. The ProGen engine will go farther and be cheaper to run.If the initial 100 do well, DHL could see as many as 500 vehicles in its fleet utilizing the ProGen system.Now, if it can get about 100 more orders just like this one, investors won't be talking about $3; instead, they'll be talking about $30. Pathway to ProfitabilityIn 2018, Plug Power had revenue of $133 million, 55% higher than a year earlier. In 2019, it expects revenue of at least $235 million, 77% higher than in 2018.That's good news.Unfortunately, its gross profit on its sales is negligible. Add in R&D and SG&A expenses and Plug Power lost $102 million on its 2018 sales. For every dollar of sales last year, it lost 77 cents.Look more closely at its various streams of revenue: you'll notice that except for the actual sale of its fuel-cell systems, each of its other revenue generators costs more to produce or provide than the money they bring in.At least the sale of fuel-cell systems brought in $71.3 million in 2018. And their cost of goods was only $54.8 million, generating a gross margin of 23%.In the first six months of 2019, Plug Power's $40.8 million in fuel systems sales had a gross margin of 37.6%. This was considerably higher than in all of 2018.If PLUG can keep pushing its gross margin higher on the fuel-cell systems, the largest of its revenue streams, and it can move beyond the logistics market, it's got a legitimate shot at generating consistent profits.The first half of 2019 could be an aberration: in the first six months of 2018, its fuel-cell systems had a gross margin of 13.4%. But if not, the company's projection that it will deliver positive adjusted EBITDA for the entire fiscal 2019 doesn't seem outlandish in the slightest. The Bottom Line on PLUG StockAs speculative plays go, Plug Power stock is an interesting one.Its business appears to be doing better than it ever has, both operationally and financially. And yet the PLUG stock price is stuck around $2.20 a share.Having Amazon and Walmart as a backstop is nice. However, if it really wants to take off, it has got to deliver more deals like DHL. It just has to.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post For Plug Power Stock to Snag $3, It Needs More Than Amazon and Walmart appeared first on InvestorPlace.
On the surface, Plug Power (NASDAQ:PLUG), the maker of membrane fuel cells, can certainly be seen as a seductive stock, particularly for those that like low-priced securities. Plug Power stock fits that bill, residing at just over $2 a share on the back of a year-to-date gain of more than 78%.Source: Takashi Images / Shutterstock.com Of course, the skeptical investor can and should ponder why a stock that's up 78.23% year-to-date closed at just $2.21 on Tuesday, Aug. 20 as did Plug Power stock. Plug Power stock is one of those cheap (by price), innovative companies that has a way of getting some investors to rally around the idea of "potential." When in reality, there are a lot warts for investors to consider.Those warts include an unclear path to profitability and high client concentration. As one of my InvestorPlace colleagues recently noted, last year, Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) combined to account for two-thirds of Plug Power's revenue. Regardless of a company's size, investors should be leery of a lack of revenue diversification.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The company intends for its fuel cells to provide electricity to homes as an alternative to the existing electric utility grid and other power generation technologies," according to Morningstar.Translation: The company operates in the hot alternative energy niche, likely another reason why some investors have been captivated by Plug Power stock. Plug Power Is Looking to ExpandWhile counting Amazon and Walmart among clients makes for an enviable roster, Plug Power deserves some credit for at least trying to diversify that mix. For example, the company recently unveiled plans for its fuel cells to power FedEx (NYSE:FDX) ground vehicles at an upstate New York airport. * 10 Marijuana Stocks to Ride High on the Farm Bill "FedEx has been running the vehicles -- called tuggers -- with Plug fuel cells for months at the Albany International Airport, surviving temperatures as cold as 4 degrees Fahrenheit and as hot as 90 degrees Fahrenheit," reports The Albany Business Review. "The challenge now is getting the fuel cell engines for airport ground equipment to market. It is one of the first signs that Plug is diversifying beyond its core market of fuel cell engines for forklifts in warehouses."Indicating that PLUG stock is positively correlated to such news, reports on the Albany Airport venture broke last week. And this week, shares of Plug Power are higher by almost 5%. Increased infrastructure spending is another potential long-term catalyst for Plug Power stock."I think when you look at commitments that are being made by large companies that they view that this industry that there'll be over $300 billion of investments over the next 10 to 12 years," said CEO Andrew Marsh on the company's second-quarter earnings conference call. "Obviously, infrastructure is part of that. And when I take a look, I have a parochial view of this. But I think the fact that Plug Power has deployed more units, has built more hydrogen infrastructure, used more hydrogen than anyone else, which we think is a real long-term opportunity for the company." The Bottom Line on PLUG StockFor investors that like alternative energy and are already engaged with solar or wind securities, PLUG stock could be a low risk, high reward complement to those strategies. While the name isn't an appropriate holding for conservative investors, management's ability to at least drive lower losses and better top line could make Plug Power stock a winner, but probably not a stellar secular story.Fair value for PLUG stock is probably just north of $3, representing compelling upside from current levels. But to get there, the shares will need management to increase revenue breadth and for small caps to come back into style.Todd Shriber does not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Plug Power Stock May be Cheap, But It's Cheap for a Reason appeared first on InvestorPlace.
In late June, yours truly here suggested the world was finally ready for hydrogen-powered electricity solutions provided by the likes of Plug Power (NASDAQ:PLUG). As such, PLUG stock may have finally become a worthy bet. The fact that Plug Power stock made a major low that day and rallied through the early part of July underscored the idea.Source: Shutterstock Since then, despite topping last quarter's earnings and revenue expectations (both of which were improved year-over-year), the PLUG stock price has moved to even lower lows.As of right now, shares are under their pivotal 200-day moving average line that has acted as support the day of my previous look.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm going to stick with my thesis though, on faith that a sweeping, marketwide meltdown won't materialize and completely undermine Plug Power stock. The company's still got too many catalysts cued up for later this year. Plug Power Is Getting the Job DoneI was wrong about Plug Power's acquisition of Canadian company EnergyOr being one of the four major announcements the company had in store for the year. Becoming a supplier of engines for 100 DHL delivery trucks is still one of the four, but CEO Andy Marsh explained in the second quarter's letter to shareholders there are still three more developments that have yet to be revealed.It's not clear if Thursday's press event counts as one of the other three. It probably doesn't, though it's certainly a noteworthy development. * 10 Cheap Dividend Stocks to Load Up On The press event in question is taking place at Plug Power's headquarters in Latham, New York, but the purpose is to showcase the success of the company's pilot program with Albany International Airport. In February, the airport replaced many of its luggage-handling vehicles with fuel cell-powered versions. Undoubtedly the event will serve as validation of the idea of liquid hydrogen fuel cells.Walmart (NYSE:WMT) and Amazon.com (NASDAQ:AMZN) are both customers, using forklifts and other load-handling equipment powered by Plug Power's battery-replacing fuel cells.All told, the company has sold more than 28,000 fuel cells since its inception, with 2000 of them being delivered last quarter.For perspective on that pace, last quarter's revenue of $57.1 million was up 43% from the year-earlier figure of $39.9 million. The loss was whittled down from twelve cents per share of PLUG stock to only eight cents. Investors Waiting on More EvidenceThere's little not to like.Although still in the red and expected to be for at least a couple more years, the company's current fiscal trajectory could put it in the black by 2022. Investors have been more bullish on stocks with weaker prospects. Click to EnlargeThe impasse is arguably a lingering lack of awareness regarding hydrogen fuel cells and their potential. They're seemingly too good to be true, only generating heat and water when they produce electricity.To that end, ironically, there's a downside that makes the premise of hydrogen fuel cells all too real. Their drawbacks include their expense, and the difficulty in storing and transporting hydrogen.They can also be dangerous; liquid hydrogen also serves as rocket fuel. On balance, however, hydrogen has proven to be an effective alternative. Not only is it renewable, but it's also about twice as efficient as burning fuel in a traditional combustion engine.As is the case with all new technologies though, time is quelling the uncertainty. The fuel cell market is expected to grow in excess of 20% per year through 2026.And Plug Power has gotten very, very good at serving as one of the growing fuel cell industry's key influencers, positioning itself as a category leader of a group that includes a bigger (as measured by market cap) Ballard Power Systems (NASDAQ:BLDP) and a smaller Hydrogenics (NASDAQ:HYGS).Events like the one scheduled for September in Latham create that much-needed spectacle the hydrogen fuel cell premise needs. They may not create the same kind of buzz Apple (NASDAQ:AAPL) is capable of creating at its unveiling events, but for the sliver of consumers and corporations that care about alternative energies, such events draw clear attention to the company.If nothing else, current and would-be owners of PLUG stock are amped up in anticipation of what the long-teased "other three" announcements will be. Bottom Line on PLUG StockWhile the backstory is right, that won't necessarily put or keep Plug Power stock in an uptrend.Blame the market environment more than anything else right now. When fears of a recession are at their most frenzied, investors don't want to own much of anything. They're particularly unwilling to take chances on still-new technologies in that scenario. Plug Power also lacks the size that translates into solidness in many investors' minds.Nevertheless, hydrogen fuel cells work. Plug Power is making them a legitimate alternative. It took solar and even wind power years and years to reach true, fiscal viability.If nothing else, PLUG stock has earned a spot on your long-term watchlist at least through next month when its publicity event will include another big announcement.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Plug Power Is Performing, and PLUG Stock Eventually Will Follow Suit appeared first on InvestorPlace.
Even after a correction of 27% from the highs of 2019, Plug Power (NASDAQ:PLUG) stock is higher by almost 100% from December 2018 levels. The rally in the PLUG stock price has been triggered by strong revenue growth, expectation of positive EBITDA in the fourth quarter and an optimistic growth target for the coming years.Source: Shutterstock After a sharp rally, I believe that Plug Power stock is likely to remain sideways or trend lower in the coming quarters. Unless something radical happens, I'll likely remain cautious on shares for these reasons: Client Concentration Is a ConcernIn the material handling and airport equipment segment, Plug Power boasts a long list of blue-chip clients. They include Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), BMW, General Motors (NYSE:GM), Honda Motor (NYSE:HMC), Toyota (NYSE:TM), Procter & Gamble (NYSE:PG), Carrefour (OTCMKTS:CRRFY), among others.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, for the year ended December 2018, Amazon and Walmart contributed to 66.7% of revenue. * 10 Stocks Under $5 to Buy for Fall While I am not suggesting potential losses of clients, PLUG's business scalability is questionable. That's especially the case for a company that has witnessed meaningful equity dilution.It is worth noting that company's agreement with Walmart commenced in 2014. Furthermore, the multi-year agreement with Amazon was initiated in 2016. During the five-year period from 2014 through 2018, the company's revenue has grown at a CAGR of 22.3% with sustained cash burn. With a small revenue base, growth has been muted.Plug Power does expect to accelerate growth in the coming years. However, with EBITDA just expected to turn positive in 2019, cash burn is likely to sustain. This might imply further equity dilution. Thus, the PLUG stock price can remain sideways to lower even if top-line growth is healthy. Looking Beyond Material Handling EquipmentThe key focus for Plug Power stock has been the material handling equipment. However, the company does not expect the segment to be a growth driver in the coming years.The next three to five years is likely to focus on expansion in the medium- and light-duty vehicles segment. On this front, the ProGen engine can be a game-changing product. Plug Power has already signed a deal with StreetScooter (a subsidiary of DHL) for delivery of ProGen hydrogen fuel-cell engines.The important point to note is that StreetScooter will initially deliver only 100 hydrogen fuel cell-powered trucks for on-road use. Therefore, the contract does not immediately add meaningful revenue.Based on the initial response, the order flow can potentially accelerate. The positive point is that the deal allows Plug Power to make inroads in terms of contact with electric vehicle manufacturers. The global EV market is likely to swell to $912 billion by 2026.Even if Plug Power taps the logistics service market, there will be enough potential to expand.Another potential positive for PLUG stock is expansion in the European markets. The agreement with StreetScooter coupled with an expanded contract with FM Logistic will help the company make its presence felt in a big market.The key question remains business scalability. The current contracts are relatively small in terms of adding to the backlog.As a matter of fact, Plug Power reported an order backlog of $540 million for the year ended December 2018. Importantly, the backlog has an execution period that ranges from 90 days to 10 years. Therefore, revenue visibility needs a boost in the coming years if PLUG stock is to trend higher. Final Words on PLUG StockPlug Power has a strong revenue guidance of $235 million to $245 million for 2019. In addition, the company expects revenue in the "medium-term" to increase to $450 million to $550 million.This growth is only possible if the company's ProGen sales gain traction in the medium and light-duty vehicle segment. The company is also looking at hybrid buses and small to mid-size cars as potential markets. However, it is too early to assume or conclude that these markets will deliver in terms of product acceptability and revenue growth.It therefore makes sense to remain in the sidelines. With a target to accelerate growth, Plug Power will need funding. Further, equity dilution can negatively impact PLUG stock.More importantly, it remains to be seen if the company's products gain wider market acceptance.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Plug Power Stock Is High on Innovation but Low on Profitability Potential appeared first on InvestorPlace.