Fuel cell solutions company Plug Power Inc (NASDAQ:PLUG) has seen its stock rising steadily for much of the year so far and has emerged as one of the stocks that could be tracked by investors. Since the turn of the year, PLUG stock has gained as much as 60%, and it has performed impressively this week yet again.
On Tuesday, Plug Power stock soared by as much as 10%, and today, it has already gained another 7% in early morning trade. Such a performance from the stock certainly calls for a closer look at the latest developments from the company.
The rally in PLUG stock can be traced back to a press release sent out by Plug Power with regards to the signing of a major contract. The company revealed that it had received an order worth $172 million for deploying hydrogen fuel cells up until 2021.
Although Plug Power did not reveal the identity of the client, it did say that it is a Fortune 100 company. Once the magnitude of the new contract is put into context, it becomes clear why PLUG stock has rallied to such a degree.
The stock is now up by 7.63% at $5.22 and made a new 52-week high of $5.28 earlier in today’s session.
The order is a massive one for Plug Power, considering the fact that in the previous 12 months, the company did business to the tune of $192 million. The magnitude of the deal was a major factor for the rally, and in addition to that, the deal also triggered positive comments from analysts on Wall Street.
Roth Capital analyst Craig Irwin said that the upside from the current deal is already priced into the stock price, but he went on to say that he expects Plug Power to ink similar deals in 2020. If that proves to be the case, it will definitely be a big boost for the company and also PLUG stock.
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