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Plug Power Surges 38.6% YTD: Should Investors Ride the Rally?
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Key Takeaways
Plug Power shares have surged 38.6% year to date, outpacing the industry and S&P 500.
Electrolyzer sales jumped 13.2% in Q3 2025, driving revenue growth and global hydrogen projects.
Project Quantum Leap aims to cut cash burn and deliver $200 million in annualized savings.
Plug Power Inc. (PLUG - Free Report) shares have surged 38.6% in the year-to-date period, outpacing the industry and the S&P 500, which have returned 26.9% and 17.6%, respectively. In comparison, the company’s peers like Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) have gained 854.2% and 10%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $2.73 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. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Although PLUG 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 expected to drive its long-term performance.
PLUG’s Long-Run Prospects Look Bright
Plug Power’s results continue to show signs of recovery in the third quarter of 2025. PLUG’s revenues increased approximately 2% year over year in the quarter. It is worth noting that in the first nine months of 2025, the same surged 10.8% on a year over year basis. Revenues were driven by its electrolyzer product line, supported by the rising demand for green hydrogen solutions. In the third quarter of 2025, revenues from the electrolyzer product line surged approximately 13.2% on a year-over-year basis.
Demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers continues to increase across global industrial and energy applications. This momentum is supported by favorable policy support in Europe, where government funding and faster permits are helping accelerate green hydrogen deployment.
For instance, 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. In October 2025, PLUG signed a deal with Allied Biofuels to deliver a maximum of two GW of GenEco PEM electrolyzer systems. This takes its total contracted electrolyzer capacity with Allied partners to five GW.
In the same month, the company delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. It plans to deploy a total of 10 GenEco electrolyzer arrays with Hydrogen Processing Units at the site 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 builds on their existing three-gigawatt partnership in Australia and supports Plug Power’s growing presence in large-scale hydrogen solutions.
PLUG also launched Project Quantum Leap to boost its cash flow and reduce the cash burn rate. As part of the project, it expects to benefit from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform. PLUG expects the project to generate more than $200 million in annualized savings.
However, the 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 2025.
Plug Power is facing challenges across some of its core product lines. In the third quarter of 2025, revenues from equipment, related infrastructure and other products declined 9.7% year over year to $96.8 million.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Bloom Energy.
PLUG’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has remained steady in the past 60 days.
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.20X against the industry average of 35.86X. In comparison, FuelCell Energy and Bloom Energy are trading at negative 1.23X and 704.00X, respectively.
Image Source: Zacks Investment Research
Conclusion
Solid demand for electrolyzers, strategic partnerships and strong project pipeline are likely to drive Plug Power’s long-term performance. Despite near term challenges like negative gross margins and cash outflows, PLUG’s healthy long-term growth prospects in the lucrative green hydrogen market indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Plug Power Surges 38.6% YTD: Should Investors Ride the Rally?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) shares have surged 38.6% in the year-to-date period, outpacing the industry and the S&P 500, which have returned 26.9% and 17.6%, respectively. In comparison, the company’s peers like Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) have gained 854.2% and 10%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $2.73 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. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Although PLUG 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 expected to drive its long-term performance.
PLUG’s Long-Run Prospects Look Bright
Plug Power’s results continue to show signs of recovery in the third quarter of 2025. PLUG’s revenues increased approximately 2% year over year in the quarter. It is worth noting that in the first nine months of 2025, the same surged 10.8% on a year over year basis. Revenues were driven by its electrolyzer product line, supported by the rising demand for green hydrogen solutions. In the third quarter of 2025, revenues from the electrolyzer product line surged approximately 13.2% on a year-over-year basis.
Demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers continues to increase across global industrial and energy applications. This momentum is supported by favorable policy support in Europe, where government funding and faster permits are helping accelerate green hydrogen deployment.
For instance, 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. In October 2025, PLUG signed a deal with Allied Biofuels to deliver a maximum of two GW of GenEco PEM electrolyzer systems. This takes its total contracted electrolyzer capacity with Allied partners to five GW.
In the same month, the company delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. It plans to deploy a total of 10 GenEco electrolyzer arrays with Hydrogen Processing Units at the site 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 builds on their existing three-gigawatt partnership in Australia and supports Plug Power’s growing presence in large-scale hydrogen solutions.
PLUG also launched Project Quantum Leap to boost its cash flow and reduce the cash burn rate. As part of the project, it expects to benefit from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform. PLUG expects the project to generate more than $200 million in annualized savings.
However, the 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 2025.
Plug Power is facing challenges across some of its core product lines. In the third quarter of 2025, revenues from equipment, related infrastructure and other products declined 9.7% year over year to $96.8 million.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Bloom Energy.
PLUG’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has remained steady in the past 60 days.
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.20X against the industry average of 35.86X. In comparison, FuelCell Energy and Bloom Energy are trading at negative 1.23X and 704.00X, respectively.
Image Source: Zacks Investment Research
Conclusion
Solid demand for electrolyzers, strategic partnerships and strong project pipeline are likely to drive Plug Power’s long-term performance. Despite near term challenges like negative gross margins and cash outflows, PLUG’s healthy long-term growth prospects in the lucrative green hydrogen market indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.