Plug Power (PLUG - Free Report) announced that it has signed a new deal with its existing customer FM Logistic. Per the new contract, Plug Power will supply more fuel cells to the French logistics company, and install its first hydrogen refueling station in Europe.
This deal is a testament to the increasing usage of fuel cell assets in Europe and expansion of Plug Power’s operations. The hydrogen station will supply FM Logistic with hydrogen over the next five years.
Wider Acceptance of Fuel Cell Technology
Courtesy of its robust and ever improving manufacturing platform, Plug Power has delivered nearly 2,000 fuel cell units to a variety of new customers. Also, it aided in the expansion of many existing customer programs during second-quarter 2019.
Plug Power’s acquisition of MEA-producer American Fuel Cell, followed by the buyout of Montreal, Canada-based EnergyOr will allow it to produce wide range of fuel cell products. Also, this will enable the company to venture into new markets and expand reach.
Increasing Customer Base
The company continues to innovate more efficient and cost reduced solutions to improve the customer value proposition for Plug Power hydrogen fuel cell solutions. As a result, the customer base of the company is expanding and includes Amazon (AMZN - Free Report) and Walmart (WMT - Free Report) , among more than 80 blue chip customers.
Initially Plug Power’s fuel cell engines were utilized to power forklifts, and were considered an alternative to the traditional lead-acid batteries. The lower cost of maintenance and efficiency of the fuel cell engines have allowed the company to power more than 20,000 forklifts. Plug Power has successfully leveraged its fuel cell technology to expand its footprint across transport, stationary and portable applications.
In the last 12 months, shares of Plug Power have outperformed its industry's rally.
Zacks Rank & A Key Pick
Plug Power currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is AZZ Inc. (AZZ - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AZZ delivered a positive earnings surprise of 14.08% in first quarter of fiscal 2020.The Zacks Consensus Estimate for fiscal 2020 and fiscal 2021 has moved up 2.8% and 2.3%, respectively, in the past 60 days.
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