The Federal Reserve’s hawkish stance has helped the economy to witness a slight decline in inflation last month. Moreover, better-than-expected corporate earnings and…
fiscal policy support have renewed investors’ confidence in the market.
But the possibility of the central bank signaling another 75-basis-point interest rate hike in its Jackson Hole conference and related recession fears are expected to keep up the volatility. The weakening economic data from China and soaring inflation in the UK should also keep the market under pressure.
Thus, Plug Power Inc. (PLUG), Sunrun Inc. (RUN), and GreenPower Motor Company Inc. (GP), with negative profit margins and weak financials, are expected to keep losing.
Plug Power Inc. (PLUG)
PLUG is a provider of alternative energy technology that focuses on designing, developing, and commercializing hydrogen fuel cell systems used for the industrial off-road and stationary power markets.
It offers its products to retail distribution and manufacturing businesses through a direct product sales force, original equipment manufacturers, and dealer networks.
On August 4, 2022, integrated gas-to-power company New Fortress Energy Inc. (NFE) selected PLUG to supply its industry-leading proton exchange membrane (PEM) electrolysis technology for a 120-megawatt industrial-scale green hydrogen plant near Beaumont, Texas.
Strongly aligning with PLUG’s decarbonization goals and NFE’s energy transition goals, this technology will produce more than 50 tons per day (TPD) of green hydrogen.
TOP 10 STOCKS FOR THE YEAR AHEAD
For its fiscal 2022 second quarter ended June 30, 2022, PLUG’s gross loss decreased 19.4% year-over-year to $32.47 million. Its operating loss came in at $146.91 million, representing a 63.9% rise from the prior-year period.
While its adjusted net loss declined 73.9% year-over-year to $173.30 million, its adjusted loss per share fell 66.7% to $0.30. As of June 30, 2022, the company had $2.26 billion in cash and cash equivalents, down 9.1% from the end of fiscal 2021.
PLUG’s EPS is expected to remain negative in fiscal 2022 ending December 31, 2022. Its EPS is expected to decline at a rate of 40% per annum over the next five years.
The stock’s trailing-12-month ROE, ROA, and ROTC are negative. Over the past week, the stock has lost 9.2% to close the last trading session at $26.82.
PLUG’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
It has an F grade for Stability, Sentiment, and Quality and a D for Growth and Value. Click here to see the additional ratings for PLUG’s Momentum.
PLUG is ranked #86 of 90 stocks in the C-rated Industrial – Equipment industry.
Sunrun Inc. (RUN)
RUN is a home solar, battery storage, and energy services company that designs, develops, installs, sells, owns, and maintains residential solar energy systems. It markets and sells its products through a direct-to-consumer approach across online, retail, digital media, canvassing, field marketing, and referral channels, as well as its partner network.
On August 3, 2022, RUN launched its new…
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