Plug Power (PLUG) shares have inched higher ahead of the company’s second-quarter results scheduled for release today, Aug. 10, after market close.
Consensus is for the hydrogen fuel cell specialist to record a loss of $0.08 per share, which would represent about a 50% improvement versus the same quarter last year.
Heading into the quarterly print, Plug Power stock is down about 50% versus its year-to-date high.
Where Options Data Suggests Plug Power Stock Is Headed
According to Barchart, the derivatives market believes PLUG shares are poised for continued gains after the Q2 release late on Monday.
As of writing, the put-to-call ratio on options contracts expiring Aug. 14 sits at 0.35x, indicating a strong bullish skew.
And the upper price on those contracts is set at $2.46, signaling Plug Power could rally nearly 13% through the end of this week.
That said, Barchart does not share the options traders’ optimism; its “40% SELL” opinion on the clean energy company suggests technical momentum is not in favor of PLUG heading into the Q2 print.
Are PLUG Shares Attractively Priced Ahead of Q2 Print?
Caution is warranted in playing Plug Power shares also because they are currently going for a price-to-sales (P/S) multiple of more than 4x, which appears somewhat stretched for a company that has yet to achieve sustainable profitability.
Moreover, the clean energy specialist has a history of losing nearly 2.6% in August on average — a seasonal pattern that further dulls its appeal for the near term.
Barchart data also reveals that insiders have predominantly sold PLUG in the trailing 12 months, which signals management is not overwhelmingly confident about future upside either.
And the Nasdaq-listed firm does not currently pay a dividend to incentivize ownership despite the aforementioned concerns.
How Wall Street Recommends Playing Plug Power
On the plus side, however, Wall Street analysts remain convinced that the selloff in PLUG stock has gone a bit too far and it’s actually undervalued at current levels.
While the consensus rating on Plug Power remains at “Hold” only, the mean price target of $3.54 signals potential upside of more than 60% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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