Why Plug Power Inc. Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Leading a broader rally in fuel cell stocks, shares of Plug Power Inc. (NASDAQ: PLUG  ) rose nearly 18% Wednesday on heavy volume after analysts initiated positive coverage on two related companies. 

So what: Specifically, analysts at Jennings Capital initiated coverage on both Ballard Power Systems (NASDAQ: BLDP  ) and its Canadian peer, Hydrogenics Corp.  (NASDAQ: HYGS  ) . Jennings rated both stocks a buy, causing shares of Hydrogenics and Ballard Power to also jump more than 13% and 16%, respectively.
Ballard Power, for its part, supplies fuel cell stacks for use in Plug Power's popular GenDrive hydrogen fuel cell system, which is part of its comprehensive GenKey solution and marketed as a "superior alternative" for lead-acid batteries in all major OEM electric lift trucks.
Now what: First, keep in mind Plug Power isn't profitable on a trailing 12-month basis. Shares also don't look cheap, trading around 28 times last year's sales and 253 times next year's estimated earnings. However, expectations are high for growth in Plug Power's GenKey solution, with bookings doubling year over year to $80 million as of Plug Power's first-quarter report last month. Plug Power CEO Andy Marsh also stated at the time while they're targeting over $70 million in revenue this year, they expect recent investments in the business to even further "accelerate growth in the coming years." If that happens, I see no reason Plug Power won't continue rewarding patient long-term investors from here.

Warren Buffett's biggest fear is about to come true
Warren Buffett just called this emerging technology a "real threat" to his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, and that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the brains behind the technology.

Read/Post Comments (0) | Recommend This Article (16)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2999659, ~/Articles/ArticleHandler.aspx, 9/3/2015 8:55:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,351.38 293.03 0.00%
S&P 500 1,948.86 35.01 0.00%
NASD 4,749.98 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
PLUG $1.71 Down +0.00 +0.00%
Plug Power, Inc. CAPS Rating: *
BLDP $1.30 Down +0.00 +0.00%
Ballard Power Syst… CAPS Rating: **
HYGS $8.79 Down +0.00 +0.00%
Hydrogenics Corp (… CAPS Rating: *