Plug Power to Break Even and PLUG Stock Gains 30.89% in 3 Months

• PLUG Stock rallied 11.89% in a month and 30.89% in three months. 
• Analysts argue that if a consistent growth rate is maintained, Plug Power’s financials could break even. 

Plug Power Inc. (NASDAQ: PLUG) will release Q2 earnings on August 10 2023 with PLUG stock gaining 30.89% in 3 months, taking the company to break even. PLUG stock has been trading since the 1990s; it peaked at nearly $1,500 in 2000 but fell by about 99%. Also, the accumulated deficit of the green energy company is $3.3 Billion. 

Plug Power Inc. (PLUG) Stock: Can Financials Reach Break Even Point?

A break-even point is reached when a company’s finances, after being in a loss for a noticeable period, get a point of no profit or loss. Since energy stocks are gaining traction, hydrogen stocks garner investors’ interest. Plug Power lost nearly $658 Million in operations last year while the revenue was $701 Million. 

Analysts argue that Plug Power would report its final loss in 2024 and become profitable in 2025 with gains of $91 Million. The consensus estimated a break-even point for the company in two years only if the average annual growth rate floats around 68%.

Plug Power Inc. (NASDAQ: PLUG) – Technical Analysis

Plug Power Inc. working in the hydrogen energy space, had a wild ride recently, with PLUG’s share price nearly doubling between May and July 2023. At press time, PLUG Stock is trading at $11.72, gaining 0.56%; previous close and open were at $11.65 to $11.48, respectively. The 52-week range is between $7.39 to $31.56, indicating a massive gap from the top.

With an average volume of 21.91 Million shares, the market cap is $7.035 Billion. The trailing twelve-month (TTM) earnings per share (EPS) is minus $1.27. Analysts estimated the price target at $20.21 with 72.6% upside and provided a 2.68 rating for moderate buy. 

Plug Power reported its last earnings on May 9, 2023, where the reported revenue of $210.286 Million surpassed the expected value of $205.485 Million by 2.34%. Compared to the previous quarter, the revenue surged by 49.35%. At the same time, the reported earnings of minus $0.35 per share failed to beat the estimated value of negative $0.266 per share by 31.81%. 

This negativity caused the PLUG share price to fall around 21% around the earnings date. When compared to the previous quarter, the EPS fell by 25.28%. The subsequent earnings will be reported on August 10 2023 where the analysts expect revenue to be $236.707 Million and earnings to be minus $0.266. Additionally, EPS would represent a gain of $0.09 from Q1 2023. 

The operating margin fell by 93.54%, and operating expenses grew by 32.92% to $137.44 Million. The (TTM) revenue is $770.92 Million, while the year-over-year (YoY) quarterly revenue growth is 49.30%. PLUG stock price fell 4.29% in a week and 7.83% YTD but rallied 30.89% in the last three months. 

Plug Power Inc. (PLUG) Stock: Candle Exploration

Since the last earnings, PLUS stock price has been ascending as denoted by the trend line. This could be termed a short-term momentum but it needs bigger candles and volume to be bullish in the longer time frame. Additionally, the descending 200EMA and ascending 50EMA could meet forming a golden crossover but it will take time. 

To gain slight momentum, 200EMA needs to be traversed; then, the price could cross immediate resistance at $15.08. If the earnings come out negative and the price falls below the trend line, it should bounce off immediate support before entering buying zone. 

Technical Levels:

• Resistance: $15.08 and $16.80. 
• Support: $9.71 and $8.15. 

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