Schaeffer's Top Stock Picks for '25

Plug Power Stock is Worth Its Premium Price Right Now

PLUG is a far cry from its record high back in November

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Back in January 2021, Plug Power Inc. (NASDAQ:PLUG) was one of Schaeffer's two alternative energy picks for the New Year. The hydrogen cell developer understood the assignment for most of the year, trading as high as $$46.50 on November 22. But it ended up being a long way down from the top, with PLUG last seen trading at $18.15, a victim of the harsh growth stock correction in 2022. 

Plug Power stock has taken a 35% haircut year-to-date, although not a single analyst rates it a "sell." The alternative energy company is expected to complete fiscal 2022 with 81.3% revenue growth and -0.7 in EPS (earnings per share), which would mark a 12 cent increase in earnings compared to 2021. The company is also estimated to increase their revenues by 49.3% and generate -0.32 in earnings per share for fiscal 2023.

In addition, PLUG provides a great balance sheet with $3.44 billion in cash and $818.18 million in total debt. Nonetheless, Plug Power stock’s valuation is relatively high at a price-sales ratio of 16.67. Still, PLUG continues to be an attractive long-term option for growth investors due to the business’ total addressable market.

The good news for options traders is the security's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 91 out of 100. This indicates the equity exceeded option traders' volatility expectations during the past year -- a boon thing for premium buyers.

 

 
 

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