Plug Power Stock Prediction: Algorithmic View On PLUG And Their Entry To The Renewable Energy Realm

EMIEmiliano Vainstein is a Financial Analyst Intern at I Know First

 

Plug Power Stock Prediction

Summary

  • The expectation of a positive upside for the Renewable Companies.
  • Strategic Supply Agreement for PEM Stack Membrane.
  • Waiting for the Conference to provide Business Update.
  • A brief about 3Q 2015
  • Short- and intermediate-term outlook for the price of the stocks based on Algorithm prediction.

It is said that during a crisis, opportunities appear, right? These kinds of moments do not come so often. So, when they happen, it is important to be prepared to take the opportunity.

In a time where companies involved in non-renewable energy are in crisis, are losing value, and share prices are at  their lowest, investors should be aware of the importance of the many different companies within the renewable energy sector and let the recovery process happen.  Plug Power Stock Prediction

We realized that the fall in demand for non-renewable energy is inversely proportional to the awareness of the use of renewable energy. The fall in energy is due to the contraction of the global market. As this is happening, more and more people understand the importance of a clean environment.

We believe that in this environment, the income for the companies who work with non-renewable energy will decrease and the income of those companies who work with renewable energy  will increase. In this context, we will analyze  PLUG for the long term.

Plug Power Inc. (PLUG), a leader in providing clean, reliable energy solutions and 3M, a science and technology company, today announced a supply agreement for membrane electrode assemblies (MEAs) to be used in Plug Power designed proton exchange membrane (PEM) fuel cell stacks. Why is this so important? This will improve the performance of hydrogen fuel cell technology and it could possibly be the first step to a new generation of products. This is an opportunity to follow not only how this will affect sales and profits but also the expectations of investors.

The company has announced it will host its January Business Update, and that their investors have high expectations for the company’s performance for the quarter. At this time PLUG is particularly attractive for investors due to the trend that the price of the commodities are  falling and companies that have a direct relationship with this market have been looking for a strong stock to cover their losses. Although this situation could potentially lead to an overbuy, the YTD price demonstrates that it is not overvalued. In addition, to the possibility of strong performance results from the new joint venture with 3M, Wall Street analyst consensus estimates suggest an impressive upside, with a consensus 12-month price target of $3.00, where the stock most recently closed at $1.85.

As it was shown in the 3Q Results, Plug took major steps to achieve their 2015 objectives despite their unprofitability. In order to understand the reason behind these results, it is necessary to look at the company’s consistency. The revenues for Plug power have been growing for the last 5 years. This kind of constant and sustainable growth is a significant indicator of future performance.  The 3Q earnings report explains:

Plug Power Stock Prediction

“In January, I clearly stated the goals that Plug Power intended to achieve in 2015,” said Andy Marsh, CEO of Plug Power. “I also outlined the timeframes in which we expected to achieve them. I am pleased with Plug Power’s execution in the business, and the fact that we have stayed on track and are on pace to achieve the goals and milestones laid out at the beginning of the year.

Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 3,000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm correlates with the fundamental analysis where the general consensus is that via continuously increasing their revenue and expanding their market PLUG stocks are bound to rise in the long term. Power Plug’s current low stock price creates an opportunity to investors with tremendous upside potential.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

The signs of PLUG pointing to success in this 2016.

The stocks continue to be undervalued but there are far away from being beaten down. It seems like all their recent commercial decisions have paid off, and their current ones seem like they will work out as well.

We can observe that the three months forecast has a bullish signal of 32.62 and a predictability of 0.26. The one year forecast has a bullish signal of 17.19 and a predictability of 0.29.

Plug Power Stock Prediction

I Know First has had success predicting the movement of Plug Power’s stock price in the past. In this three-month forecast from Oct 18th, Plug Power had a bearish signal with a signal strength of -26.63 and a predictability indicator of 0.31. In accordance with the algorithm’s prediction, the stock price decreased by -28.14% during that time.

Plug Power Stock Prediction

 

 


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