Plug Power (PLUG -3.41%) stock has been on a true tear over the last six months. While the S&P 500 index is up 17%, Plug stock has skyrocketed 58% during the same period.
But investors who think Plug Power's overachieving stock price of late precludes it from further gains would be greatly mistaken. There's reason to believe that Plug stock can absolutely go parabolic by the end of 2027.
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Project Quantum Leap can push Plug closer to profitability
Plug has succeeded at growing its revenue over the past decade. From 2015 through 2024, the company grew sales at a 22.2% compound annual growth rate. The bottom of the income statement, however, tells a different story: consistent net losses that have only been getting bigger. After posting a net loss of $724 million in 2022, Plug reported net losses of $1.4 billion and $2.1 billion in 2023 and 2024, respectively.
Committed to changing this narrative, management announced an expense-reduction initiative called Project Quantum Leap earlier this year. Management estimates the initiative could eliminate $150 million to $200 million in costs annually.
With two quarters of 2025 over, Project Quantum Leap is showing success. In the first six months of 2025, Plug reported an operating loss of $355 million, narrower than the $504 million operating loss it reported during the same period last year.
If Project Quantum Leap continues bearing fruit, the company's target of achieving positive operating income by the end of 2027 will seem even more attainable. For a company that has never generated positive quarterly operating income, this would be extraordinary, and shares would almost certainly skyrocket.
Should investors plug Plug Power stock into their portfolios right now?
There's no rush to click the buy button on Plug stock, but if the company advances further toward generating positive operating income, it could be a good indication that the company's finally on the right track. Investors with this fuel cell and hydrogen stock on their radars, therefore, should continue to monitor the company's quarterly reports closely.
