Plug Power Is Still Leading the Hydrogen Revolution
Ignoring interest noise for a second, Plug Power is still leading the multi-trillion-dollar Hydrogen Revolution.
The world is pivoting toward clean energy. By 2050, we will live in a world powered end-to-end by renewable energies.
One of those core energies will be hydrogen, since it has certain innate scientific advantages from being the lightest element in the universe that render it the most cost-efficient clean energy solution in end-markets where dense, always-on batteries that last forever are particularly useful (think forklifts, long-haul trucks and power for data-centers).
Plug Power is the leader in hydrogen.
The company has been in the game of making hydrogen fuel cells for decades now. Over that time, the company has proprietarily developed the industrys highest-performing and lowest-cost hydrogen fuel cells.
Plug Power is currently applying these industry-leading fuels cell to the materials handling end-market, where they are powering Walmart (NYSE:WMT), Home Depot (NYSE:HD), and Amazon (NASDAQ:AMZN) forklifts. But, more excitingly, Plug Power is is the early stages of applying this tech into much bigger end-markets, like green hydrogen generation, consumer autos, long-haul trucking, stationary, and more.
Plug Power has already and will continue to find great success in these expansion efforts. Thats because all these end-markets required core HFC technology, and Plug Power has the best core HFC technology in the world.
To that end, Plug Power is morphing into the technological backbone of the entire Hydrogen Economy. I wouldnt be surprised if, by 2030, thousands of forklifts, trucks, data-centers, and ships are powered by Plug Powers technology.
Of course, all that means is that the fundamentals underlying PLUG power stock remain robust. This is still an innovative disruptor with enormous long-term growth potential.
Plug Power Stock Has Big Upside Potential
I cannot tell you exactly when the selloff in Plug Power stock will end. But, what I can tell you is that even after factoring in higher rates Plug Power stock is significantly undervalued relative to the companys long-term earnings growth potential.
By 2030, I see Plug Powers technology powering big segments of the global economy. I imagine the company will dominant the materials handling market, and have sizable market share in the stationary and long-haul trucking end-markets. The company will also be a big player in green hydrogen production.
Calculating the potential in all those end-markets, I see Plug Powers revenues eclipsing $10 billion by 2030. EBITDA margins should, at scale, settle around 30%, given the companys favorable pricing power thanks to its huge HFC tech lead.
With those inputs, my valuation model outputs a fair value for PLUG stock today of about $60.
Thats way above where shares trade currently.
To be clear, PLUG stock may not rebound back to those levels right away. But the fundamentals eventually and inevitably always win out. Thus, whenever this stock market bloodbath does end, I do think Plug Power stock will surge higher.
Bottom Line on PLUG Stock
The tech sector meltdown has created multiple great buying opportunities for long-term investors. PLUG stock is one of the best stocks to buy amid this meltdown.
But its not the best growth stock to buy on the dip.
Instead, the best growth stock to buy today is a company that reminds me of a young Amazon. Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 before it soared thousands of percent.
Which stock am I talking about?
Click here to watch my first-ever Exponential Growth Summit to find out the name, ticker symbol, and key business details of this potential 10X stock pick.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. Its how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.