Plug Power stock staged a strong comeback, climbing to a high of $1.58 in extended trading as clean energy companies rebounded after the midterm elections. The shares are now up more than 20% from their lowest point this year as investors await the company’s upcoming earnings report.
Plug Power stock jumps after midterm elections
Clean energy companies are among the top gainers today as investors react to the midterm elections. Some of the top gainers are companies like Enphase Energy, Sunrun, and Clearway Energy.
These stocks are rising because investors expect Democrats to put the brakes on Trump’s anti-clean energy policies. For example, the One Big Beautiful Bill Act ended the renewable energy tax credits. Trump also announced cuts to energy funding.
Therefore, the hope is that Democrats will put brakes on these policies. Most importantly, investors hope that the two sides will make a deal, possibly as part of the government funding proposals.
Plug Power to publish earnings
The next important catalyst for the company is the upcoming earnings, which will provide more color on its business. Analysts expect the upcoming numbers to show that its revenue rose by 9.20% to $193.3 million. Its earnings-per-share (EPS) is expected to narrow down to $0.06 from the previous year’s $0.12.
The most recent results showed that its revenue rose to $178.2 million in the second quarter driven by its equipment, fuel deliveries, and services on fuel cells. Its equipment sales stood at $81.8 million in the second quarter from $99 million in the same period last year.
Plug Power also narrowed its losses. Its net loss came in at $190 million in the second quarter from $228 million in the second quarter of last year. This happened as the company reduced its costs, which helped its gross margins.
In a recent statement, the company said that it was achieving its three key priorities, including sales growth, margin expansion, and cash flows. In this, management said that its revenue will likely be 10% higher than in the same period last year. It also reduced its net cash usage by about $28 million. The CEO said:
“Our progress across sales, margin and cash burn demonstrates that the actions we are taking are delivering results.”
Still, despite this progress, many investors remain skeptical about its turnaround, with its short interest being 20%.
Plug Power share price technical analysis
The daily chart shows that the PLUG stock has been in a strong sell-off in the past few months, moving from a high of $4.34 in June to a low of $1.30 this month. It has now bounced back as investors buy the dip after the midterm elections.
The stock has also remained below the 50-day Exponential Moving Average (EMA) and the 23.6% Fibonacci Retracement level. Therefore, there is a likelihood that the stock will continue rising in the near term. If this happens, it may jump to the key resistance level of $2.0. A drop below the support of $1.30 will invalidate the bullish outlook.