One of the stocks to have emerged as a notable gainer in recent days is that of hydrogen fuel cell company Plug Power Inc (NASDAQ:PLUG). The stock has come back into focus this week owing to the United States Presidential Elections and gained as much as 7% on Monday. In this sort of situation, it could be worthwhile for investors to take a closer look at what went down yesterday.
Factors at Play
It is a well-known fact that if Joe Biden becomes the next President of the United States there is going to be more focus on clean energy and he is considerably ahead of the polls. The proposed Green New Deal could be a major boost for companies like Plug Power.
However, that is not the only reason behind the rally in the Plug Power stock. The company also made an important announcement on Monday that led to the rally. The company announced that it is going to announce its financial results for the third quarter on November 9.
The financial results are expected to be watched closely by market participants. Plug Power has projected that it is going to hit $200 million in profits and $1.2 billion in revenues by 2024. Hence, it is going to be seen if the company is on track to hit its projections.
This past weekend, a leading news network ran a story with regards to the renewable energy plan that could be launched by Joe Biden, if he becomes the President. The renewable energy plan in question could be worth as much as $1.7 billion and there is a provision to build up a hydrogen gas reservoir.
However, in this regard, it is also necessary to add that the market for hydrogen fuel is currently expanding at an impressive rate in Europe. Considering the potential size of the market, it needs to be remembered that Plug Power is currently valued at only $6 billion.
The company has ambitious projections for the future and the hydrogen fuel market is also expected to grow in the coming years. However, there are some risks that need to be considered.
Plug Power generates most of its income from only two clients and bigger companies might be entering the market in the future. Additionally, the company will also need to take care of its debts and interests. These are some of the risks that potential investors need to keep in mind.
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