Recently, retail investors have shown a great interest in fuel cells stocks.

With different unfavorable weather events affecting the earth’s climate, a lot of focus is being put on renewable energy. There is a lot to cheer about green energy, including the following: The Plug Power (NASDAQ)

Latham’s PLUG company is now the epicenter of hydrogen economic development. PLUG stock shares are a good investment for anyone looking to invest in hyper-growth stocks.

PLUG stock isn’t performing well at all this year. Plug Power’s January peak was more than $75. Growth investors turned to other investments.

This stock has my neutral opinion. Let’s now look at some of the reasons Plug Power might be attractive to investors at such low levels. (See Plug Power stock charts on TipRanks)

Key Catalyst for Plug Stock

Perhaps the biggest catalysts investors in PLUG stock are watching right now is President Joe Biden’s upcoming infrastructure bill. The spending bill also includes green energy investments, which could directly affect green hydrogen stocks.

Nancy Pelosi, House Speaker has been pressing for a vote to approve the infrastructure bill. If this vote passes, investors should keep an eye out for a catalyst in the near-term for PLUG stocks.

Earlier in the week, PLUG shares surged upon news of a quicker vote. However, Plug Power shares are back on track.

It is unclear if this bill will be passed and, if so what kind of funding could be made available to benefit companies such as Plug Power.

Plug Power’s Production Capacity

Plug Power’s plans for capital expenditures are another catalyst that investors should be paying attention to. Recently, the company announced that it was investing $84million in its latest Georgia-based hydrogen production facility. The new facility will be able to produce approximately 15 tonnes of liquid hydrogen each day.

This facility will use only renewable energy for the production of liquid hydrogen. Plug Power also has facilities similar to this one in New York, Pennsylvania and Tennessee.

Plug Power’s Cash Flow Position

Plug Power’s management team worked hard to raise capital during the surge in PLUG stock prices earlier this year. The company was able to raise nearly $3 billion through three stock offerings.

Although these wise moves could have adversely affected shareholders, it may also result in a decrease of existing shareholders. If you take this stock in a more fundamentals-oriented perspective, though, it is easy to see that its balance sheet is much stronger today.

Plug Power’s large cash reserves have been a strength to this stock as it tries to expand America’s hydrogen infrastructure. Investors looking to find the best player in the space gravitated towards Plug Power because it has the resources and financial strength required for such investment.

Wall Street’s Take

According to TipRanks analyst ratings consensus, Plug Power has a Moderate Buy rating. There are 15 analyst ratings. Twelve Buy recommendations, one Hold recommendation, and one sell recommendation.

The average Plug Power price target is $41.14. The average analyst price target for Plug Power is $41.14.

The Bottom Line 

PLUG Stock has plenty to offer long-term investors who are looking for renewable energy. If hydrogen fuel cells are successful in the future, this company could generate significant returns.

However, the company is known for its tendency to sell off in specific markets and sectors. Before investing in this stock, it is important to be informed about the risks and rewards.

Disclosure: Chris MacDonald didn’t hold any position at the time this article was published

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