Plug Power Surges 77.1% in 6 Months: Should You Buy the Stock or Wait?

Shares of Plug Power Inc. PLUG have surged 77.1% in the past six months, outpacing the industry and the S&P 500, which have returned 22.4% and 15.7%, respectively. In comparison, the company’s peers like FuelCell Energy, Inc. FCEL and Flux Power Holdings, Inc. FLUX have gained 26.2% and lost 0.6%, respectively, over the same time frame.PLUG Outperforms Industry & S&P 500Image Source: Zacks Investment ResearchClosing at $2.32 in the last trading session, the stock is trading below its 52-week high of $4.58 but significantly higher than its 52-week low of $0.69. PLUG is currently trading below its 50-day moving average but above its 200-day moving average, indicating a volatile trend in the share price.PLUG Stock’s 50-Day & 200-Day Moving Averages Image Source: Zacks Investment ResearchAlthough the company has been persistently grappling with negative gross margins and cash outflows, its growing presence in the lucrative green hydrogen energy and strong expertise in the electrolyzer market are likely to drive its long-term performance.PLUG’s Long-Run Prospects Look BrightPlug Power’s results continue to show signs of improvement in the third quarter of 2025. After witnessing growth of 11% and 21% in the first and second quarters, respectively, PLUG’s revenues increased 2% year over year in the third quarter. Revenues were driven by impressive demand for its electrolyzer product line, volume increase in hydrogen fuel sales and other businesses. In the third quarter, revenues from this product line surged approximately 12.9% on a year-over-year basis.This solid growth was supported by increased demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors globally. PLUG has a robust pipeline of electrolyzer projects and is working to mobilize more than 230 MW of its GenEco electrolyzers across North America, Europe and Australia. With strong expertise in providing and installing electrolyzers, Plug Power is well-positioned to capitalize on the opportunities of increasing demand for renewable fuels and green ammonia across the world.Recently, PLUG announced the signing of a letter of intent for the installation of a five MW PEM electrolyzer at Hy2gen’s Sunrhyse hydrogen production plant in Signes. Both companies are working to create a global framework for the production and distribution of renewable hydrogen, which would enhance the transition to energy across major international markets. The company also entered into a deal with NASA to deliver up to 218,000 kilograms of liquid hydrogen at the latter’s Neil A. Armstrong Test Facility in Sandusky, OH and Glenn Research Center in Cleveland, OH.This apart, in November 2025, Plug Power started installing a five MW electrolyzer for the H2 Hollandia project in the Netherlands, which will use solar power to produce green hydrogen by 2026. Also, in October, Plug Power delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. The company secured an order to install a total of 10 arrays of GenEco electrolyzers with Hydrogen Processing Units by early 2026.Also, in June 2025, PLUG expanded its partnership with Allied Green Ammonia with a new two-gigawatt electrolyzer project in Uzbekistan. This deal builds on their existing three GW project in Australia and strengthens the company’s position as a leading provider of large-scale hydrogen solutions globally.PLUG’s Project Quantum Leap is enabling it to boost its cash flow and reduce the cash burn rate. As part of the project, it is benefiting from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.Near-Term Concerns PrevailThe major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 67.9% in third-quarter 2025 after reporting a gross margin of negative 31% in the second quarter. Meanwhile, its operating cash outflow totaled $387.2 million in the first nine months of the year.The company experienced a significant decline in the number of hydrogen site installations in 2024, which reduced from 52 to 15 year over year. This number further reduced to four from eleven in the first nine months of 2025 from the prior-year period. This has been adversely impacting its revenues related to the sales of hydrogen infrastructure. Additionally, fewer liquefier projects and a slower rate of progress on the existing ventures have been hurting revenues from the sales of cryogenic storage equipment and liquefiers.Also, PLUG’s weak liquidity position remains a concern. Exiting third-quarter 2025, its cash equivalents totaled $165.9 million, reflecting a decrease of 19.2% from 2024-end. PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Flux Power.PLUG’s Estimate RevisionsImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for PLUG’s bottom line for 2025 and 2026 has decreased in the past 60 days.ValuationFrom a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.08X against the industry average of 39.00X. In comparison, FuelCell Energy and Flux Power are trading at (1.4X) and (4.14X), respectively.Hold Plug Power for NowPLUG’s growing footprint in the green hydrogen market, solid pipeline of projects, strong product portfolio and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including lower sales of hydrogen infrastructure, negative gross margins and cash outflows, are likely to continue impacting this Zacks Rank #3 (Hold) company’s near-term performance.While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Flux Power Holdings, Inc. (FLUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks