Plug Power (NASDAQ: PLUG) is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell (HFC) turnkey solutions. Targeting multiple green hydrogen plants in North America, the green hydrogen generated by this vast network will support the mission to decarbonize the larger logistics and transportation industries.
Plug Power’s strong balance sheet demonstrates its goals to become the undeniable leader in the hydrogen economy. Closing 2020 with growth of more than 950%, Plug Power is well positioned to remain aggressive in 2021 and beyond. Learn how to buy PLUG stock today and leverage its positive outlook.
Why Buy PLUG Stock Summary?
If you’re ready to be part of Plug Power’s green hydrogen roadmap, you should consider reasons to invest in green energy firms:
Green energy is a big topic of conversation: Any green energy firm you invest in will get a lot of press and have the opportunity to grow quickly.
The government is pushing green energy: If a Green New Deal passes, green energy firms will see an influx of workers, capital and interested investors.
The company is relatively new: Buying into PLUG today helps you make as many gains as possible. The firm is so young that it has plenty of room to grow, unlike mega-cap stocks that have already grown well past an affordable price.
PLUG Stock Price Prediction
Price predictions for PLUG vary depending on the source. Leo Mariani of KeyBanc believes PLUG is a strong buy on which you can initiate cover with a price target of $40. This suggests more than a 40% upside from its current levels. Additionally, the firm should remain strong given that it has 90% market share in its niche industry. The firm also holds a strong liquidity position and plans to become profitable in 2024.
In contrast, Stephen Byrd of Morgan Stanley also believes PLUG is a strong buy, but is directing investors to maintain up to $65.
How to Buy PLUG Stock
Plug Power delivers significant value proposition to end-customers, including efficiency gains, meaningful environmental benefits, fast fueling and lower operational costs, which has attracted a vote of confidence by investors. Follow these steps to buy PLUG stock.
- Pick a brokerage.
Depending on your trading experience, you might have different priorities than others when picking a brokerage. For instance, a technical trader may be less interested in whether a broker provides a wide selection of securities than in how flexible the market charting tools are. Knowing in advance what you’ll need from a stockbroker will help you make your choice.
If you’re just starting out with limited capital, you’ll want to choose a platform that has $0 minimums. Zero commissions on your trades may also help you preserve capital in your early days of trading.
Think about your trading experience. If you’re still a rookie and need research and educational resources to guide your decisions, you’ll want to pick a broker that supports you with plenty of educational resources.
Customer service is just as important as having an intuitive trading platform. Check whether your brokerage offers 24/7 customer support via phone, email or chat. You want to be sure that you won’t be stuck with a platform glitch for hours because customer support isn’t available. Don’t settle for less. - Decide how many shares you want.
Deciding on the number of shares you want to buy often comes down to your account balance, risk tolerance and overall trading strategy. If you’re still a beginner, you don’t want to allocate the bulk of your portfolio to a single stock.
The number of PLUG shares you’ll own depends on the price at which you enter into your position. Say you want to invest $1,100 in PLUG. If its market price is $55, you will own 20 shares of PLUG stock. - Choose your order type.
Most brokers let you choose from the following order types when you trade PLUG stock:
Limit order
A limit order lets you buy a specified quantity of a security at or below a specific price or sell it at or above the specified price, usually called the limit price. A limit order ensures you won’t pay more for the stock than a price you’ve set as the limit. However, your order may never execute if the market price fails to reach the limit price.
For instance, you can place a buy limit order at $3 when a stock is trading at $3.50. Your order will automatically execute when the price dips to $3. Similarly, if you place a sell limit order for $4 when a stock is trading at $3.50, the order will automatically execute when the price rises to $4.
Market order
A market order lets you buy or sell a security at the current market price. The price you receive is usually close or the same to the quote when you placed the order.
Stop order
A stop order instructs the brokerage to buy or sell a security if and when your user-specified stop trigger price is reached. A buy-stop order is always placed above the current market price. A sell-stop order is placed below the current market price and is used to limit losses or protect profits.
Stop limit order
A stop-limit order combines the features of a limit order and a stop order. Your stop-limit order executes at a specified price (or better), usually after a specified stop price has been attained. A stop-limit order eliminates the price risk associated with stop orders where the execution price isn’t guaranteed. However, it exposes you to the risk that your order may never fill even if the stop price is attained. - Execute your trade.
You’re just about to complete your trade, but what happens after an order is executed? From an investor’s point of view, you’ll see that funds have been deducted from your account (depending on the number of shares you ordered) and the stock now appears in your positions.
Since price quotes are for a specific number of shares, you may not always receive the price you saw on your trading screen or the price the broker quoted.
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PLUG Stock History
Plug Power first became a publicly-traded company in 1999, and has since built a powerful network of strategic relationships with established companies, creating extensive enterprise capabilities for technology and product development. Notable among these relationships is its relationship with Tyco Electronic Power Systems, a major power equipment supplier to the telecom industry.
Plug Power has also cultivated important partnerships to help accelerate its product development and enhance its technology portfolio. Currently, the company is in technology collaboration with Vaillant GmbH, Honda R&D Ltd. of Japan and Engelhard Corporation. Other key Plug Power milestones include:
- Entering the European market in 2000
- Acquiring Cellex and General Hydrogen in 2007
- Acquiring ReliOn in 2014
- Completing its first shipment of ProGen fuel cell engines for electric vehicles
- Acquiring American Fuel Cell in 2018
- Acquiring EnergyOr in 2019
- Acquiring United Hydrogen and Giner ELX in 2020
Pros of Buying PLUG Stock
Plug Power is changing the way the world moves and is the first to commercialize hydrogen fuel cell technologies, with its fuel cell engines now powering over 20,000 forklifts. The company’s products and services predominantly serve the North American and European material handling markets, with its impressive record being backed by its top-tier customer base, 80% of which comprises Blue Chip customers.
Revenue growth also favors this company, with a growth of greater than 3 times recorded since 2013. Power Plug has also invested heavily in research and technology, from which it has secured 150 patents.
Cons of Buying PLUG Stock
The market for energy products is intensely competitive. Some of PLUG’s top competitors in the power sector are much larger and have greater capabilities.
Also, the company’s products and services largely depend on the availability of hydrogen gas. If hydrogen fuels are not readily available or are priced quite high, PLUG’s products could be less attractive to potential users and its value proposition could be negatively affected.
Embrace a Powerful Trend with PLUG Stock
Hydrogen technology is making inroads on an increasing number of stationary power and electric vehicle markets, with pundits claiming hydrogen might just be the new diesel. An unusual suspect — Plug Power — is at the center of this paradigm shift, taking hydrogen and fuel cell technology from concept to commercialization.
With the world gearing to reduce the overall carbon footprint in a reliable and effective way, Plug Power has an impressive outlook in the cleantech sector. Plug Power is a partner that customers can trust to take their businesses into the future. Connect with an online brokerage and buy PLUG stock today.