Plug Power (PLUG +0.90%), a developer of hydrogen charging technologies, saw its stock rally nearly 50% over the past 12 months. Yet it still trades 98% below its 1999 IPO price, and it doesn't look expensive at less than four times this year's sales. Let's see why Plug could actually be a great growth stock to buy right now.
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Why does Plug Power still have room to run?
When Plug Power went public, it planned to build hydrogen charging systems for entire homes. Unfortunately, high infrastructure costs, regulatory issues, and soft demand forced it to abandon those ambitious plans. Over the past two decades, the company has pivoted to selling hydrogen fuel cells, electrolyzers, and storage systems.
NASDAQ: PLUG
Key Data Points
Today, Plug Power generates most of its revenue by selling fuel cells and charging systems for Amazon's (AMZN 1.40%) and Walmart's (WMT +1.09%) hydrogen-powered forklifts. Those two retail giants, through the stock warrants they received in exchange for purchasing its fuel systems, are also Plug's largest investors. The company has already deployed over 74,000 GenDrive fuel cell systems worldwide, up from around 40,000 systems at the end of 2021.
From 2021 to 2025, Plug's revenue grew at a 9% CAGR. It suffered a severe slowdown in 2024 amid macro headwinds that drove many companies to suspend their hydrogen projects, but it recovered in 2025 as it overcame some of those challenges. From 2025 to 2028, analysts expect its revenue to grow at a 17% CAGR, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turning positive in the final year.
That growth should be driven by new government and commercial contracts, including its recent deals with NASA and the logistics operator Uline, the increased production of its own green hydrogen, and soaring demand for its electrolyzers (which produce that green hydrogen). Those catalysts could partly offset the new challenges posed by lower government subsidies and the Trump Administration's recent suspension of the Department of Energy's loan guarantee program. It's also aggressively cutting costs through its new "Project Quantum Leap" initiative to improve its margins.
Why is it the right time to buy Plug Power's stock?
The global hydrogen market could expand at a 6.7% CAGR from 2026 to 2034, according to Fortune Business Insights, as more countries ramp up their decarbonization efforts. If Plug Power maintains its early mover's advantage in this expanding market, it could grow faster than the broader industry and generate impressive long-term gains.
