Hydrogen fuel cell designing and manufacturing PLUG stock has been on a tear for most of 2019, and Plug Power (NASDAQ:PLUG) has gained as much as 81% to date this year.
The reasons behind the optimism surrounding a historically volatile stock are due to the company’s forecasts for the year and also positive sounds from analysts on Wall Street.
Solid Earnings Growth
Back in January this year, Plug Power came out with updates that sent the stock on fire. In the update, the company stated that its gross billings for the year 2018 were going to be between $182 million and $185 million, which reflects a year-on-year rise of 40%. However, it was the forecast for 2019 that was perhaps more crucial.
Plug Power projected that the gross billings for 2019 are going to be in the range of $235 million and $245 million. In addition to that, the management stated that the company was going to turn a profit for the full year as well. When such an update is published by the management, then it is not really a surprise when the stock starts to climb, and that is exactly what happened to Plug Power stock over the past few months.
PLUG stock closed at $2.28 in Wednesday’s trading session.
Analysts are Bullish
Additionally, analysts on Wall Street turned bullish on the stock as well. Two analysts at the firm B. Riley FBR maintained their buy rating on PLUG stock and raised the target price. Analyst Carter Discroll has pegged the target price at $3.50.
If anyone is looking to buy the stock, then they need to be aware that historically, Plug Power has been an extremely volatile stock and has often experienced wild fluctuations in price. However, it is also necessary to point out that if the company does manage to hit its projected targets in 2019, then it could be a different story altogether for PLUG stock.
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