Plug Power stock price forecast and earnings preview: buy or sell?

August 06, 2023 12:17 PM PDT | By Invezz

Plug Power stock price forecast and earnings preview: buy or sell? — Image source: Invezz

Plug Power earnings preview

Plug Power, the leading hydrogen energy company will publish its quarterly financial results on Wednesday this week. Analysts expect the company’s results to show that its revenue jumped to $238 million in Q2 from $210 million in the previous quarter.

Plug Power’s revenue in the second quarter of 2022 came in at $158 million. This means that demand for its products is gaining steam as the hydrogen energy industry’s momentum continues. The management believes that its annual revenue will jump to over $1.4 billion this year with its gross profit coming in at $140 million.

Plug Power has invested substantial sums of money in the past decade as it seeks to become the market leader. For example, it recently unveiled a plant in Georgia that is the biggest green hydrogen location in the world. It plans to launch more plants in places like Texas, New York, and Louisiana.

Plug Power has also gained momentum internationally. For example, it recently received an order to supply electrolyzers in Australia. It has also won a few orders in Europe. In a recent note, analysts at Northlands said that momentum was:

“building up as its compounding opportunities are evolving in the hydrogen world… The company’s recent spate of project announcements in Europe is a testament of that.”

Plug Power stock price forecast

PLUG chart by TradingView

The daily chart shows that the PLUG stock price has made a strong recovery in the past few months. It has jumped by more than 54% from the lowest level this year. However, there are signs that the shares are losing momentum. They have formed a small double-top pattern, which is usually a bearish sign.

Plug Power share price has also failed to flip the 200-day moving average into a support. This is a sign that buyers are a bit cautious about the company. Therefore, while the company has some positive catalysts, there is a likelihood that it will drop to $10 after earnings.

The alternative scenario is where the shares make a strong comeback and moves above the 200-day MA after earnings. If this happens, the next level to watch will be at $15.

The post Plug Power stock price forecast and earnings preview: buy or sell? appeared first on Invezz.

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