Plug Power Stock News and Forecast: PLUG corrects over 4% amid competition from Cummins


  • Plug Power stock corrected 4% on Tuesday after Monday's 12% upsurge. 
  • PLUG stock is still down from last year's highs above $44.
  • The electric manufacturer hoping to benefit from the green energy revolution.

Update: After a solid start to the week on Monday, PLUG stock price failed to keep up the upbeat momentum and corrected sharply from near four-month highs of $32.03. Plug Power settled Tuesday at $30.44, down 4.13% on the day. Concerns over increased competition from its rival Cummins (CMI) weighed heavily on the stock price. Further, hawkish Fedspeak combined with fresh US and EU sanctions against Russia dented investors’ sentiment, collaborating with the corrective pullback in the price of PLUG. The share price surged 12% on Monday.

PLUG stock was up 12% on Monday in a strong move that led to the green energy stock surging to the top of the usual social media sites. PLUG has always had a strong retail following and last year was a so-called meme stock. PLUG stock surged to over $44 in November before falling back to trade under $18 in January of this year.

Plug Power is a green energy company involved in hydrogen and fuel cell energy production. The electric manufacturer has almost 40,000 fuel cell units already deployed and is hoping to embark on an aggressive growth program as demand for green energy increases sharply. This has been exacerbated by the Ukraine conflict which has seen fossil fuel prices skyrocket.

The US already has plans for more stimulus measures to support the transition to green energy and Germany has recently announced ambitious targets. Recent climate change news from the UN released on Monday further heightens the urgency to transition away from fossil fuels. So, green and clean energy stocks such as PLUG stand to benefit from this transition.

PLUG stock news: Is CMI hydrogen-powered taxi fleet a positive?

The spike on Monday does look a bit confusing. Many pundits on social media are highlighting an announcement by Cummins (CMI). CMI is to sell its 2.5-megawatt cell to produce a hydrogen-powered taxi fleet, partnering with Hysetco. This does further legitimize Plug Power's business model and the company is involved in a similar business area. However, CMI is a major player and its moving into the space would usually be taken as a negative.

PLUG recently unveiled mixed results for Q4 2021. Revenue grew to $162 million and was ahead of estimates but PLUG stock was held back as it reported a loss in earnings per share (EPS). After the results, Wall Street remains positive on the stock, and post the results Susquehanna raised its price target while Cowen stuck with its outperform rating.

PLUG stock forecast: Double bottomed at $18, now pivoting around $28

The stock has bottomed out due largely to geopolitical events in Ukraine which had fueled (excuse the pun) the transition to alternative energy sources. PLUG put in a bullish double bottom at $18 and has been trending steadily higher since. Crucially the double bottom was market with a bullish divergence in the RSI to confirm the turnaround. The move on Monday has now broken above the previous consolidation zone from $28 to $30. This zone is now crucial support to maintain current momentum while also having added importance as the 200-day moving average sits at $28.66. Therefore, this is the medium-term pivot. 

PLUG stock chart, daily

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD retreats further from the multi-week top, eyes mid-0.6200s

AUD/USD retreats further from the multi-week top, eyes mid-0.6200s

AUD/USD attracts sellers for the second straight day amid trade war fears, fueled by US President Donald Trump's threat to impose steep tariffs on Colombia. Furthermore, RBA rate cut bets, China's economic woes and a modest USD strength drags spot prices away from over a one-month peak touched last Friday.

AUD/USD News
USD/JPY retakes 155.00 mark; upside potential seems limited

USD/JPY retakes 155.00 mark; upside potential seems limited

USD/JPY builds on the overnight bounce from a six-week low and climbs back above the 155.00 psychological mark on Tuesday following the release of service-sector inflation data from Japan. Moreover, the uncertainty over US President Donald Trump's trade policies and a modest USD strength lend support. 

USD/JPY News
Gold price bulls seem reluctant amid rising US bond yields, modest USD strength

Gold price bulls seem reluctant amid rising US bond yields, modest USD strength

Gold price struggles to attract any meaningful buyers on Tuesday and remains close to a near one-week low set the previous day. Rebounding US bond yields support the USD and act as a headwind for the non-yielding yellow metal. That said, Fed rate cut bets and a weaker risk tone should help limit the downside for the safe-haven XAU/USD.

Gold News
Why China's DeepSeek is causing Bitcoin and crypto market to plunge

Why China's DeepSeek is causing Bitcoin and crypto market to plunge

Bitcoin slipped below $100,000 on Monday as China-based artificial intelligence model DeepSeek began gaining popularity across the US market, overtaking OpenAI's ChatGPT. DeepSeek's impact also led to rapid declines in the stock market with NASDAQ, diving more than 3%.

Read more
What is DeepSeek, and why is it important?

What is DeepSeek, and why is it important?

Several Chinese companies pivoted into making their various AI model offerings open source last week, sending shockwaves through the tech sector. Chinese tech startups look set to disrupt the AI space, which has, until recently, been almost singularly dominated by high-priced US tech giants and soaring valuations.

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures