Shares of fuel-cell company Plug Power (NASDAQ:PLUG) shot up 30% over the past two days, after the company announced it would be expanding its presence in Wal-Mart (NYSE:WMT) distribution centers, representing a big contract win for the small company. Plug Power currently has about 535 hydrogen fuel cell charging stations in three of Wal-Mart's distribution centers, for use in charging fork lifts and other heavy machinery, and will now be expanding that presence to a total of nine distribution centers. The stock also received analyst upgrades as a result of the contract, further spurring on investor confidence.
But the size and former market capitalization of the company raise some questions. With the stock's 52-week low of $0.14 per share, many still question the legitimacy of the company, despite the potential for its disruptive technology showing much more promise over the past year. This contract with Wal-Mart lends a lot of the credibility to Plug Power that investors were hoping for.
On today's Stock of the Day, host Mark Reeth and Motley Fool energy analyst Taylor Muckerman take a look at Plug Power, and whether it looks like a buy today. Early investors who bought at the low have seen eye-popping gains of over 4,000% in the past year, but while Taylor says he'll definitely be keeping a close eye on the stock, he wants to see the dust settle a little more around this one before he buys in.
Mark Reeth has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.