7 Best Battery Stocks to Buy According to Analysts

2. Plug Power Inc. (NASDAQ:PLUG)

Upside Potential: 174%

Plug Power Inc. (NASDAQ:PLUG) deals in hydrogen and fuel cell solutions across global markets through products like GenDrive for electric vehicles and ProGen for delivery vans. The product portfolio includes hydrogen production systems and liquid hydrogen as clean energy alternatives. Plug Power caters to industries including transportation and communication through direct channels and partnerships.

Despite significant efforts in scaling up its hydrogen production capabilities, the company struggled in revenue generation and cost management. Plug Power Inc. (NASDAQ:PLUG) reported $143.4 million in revenue during Q2 2024, recording a 45% decline from the same quarter last year. This revenue instability is due to PLUG’s growth stage, which is causing it to face pricing challenges. This decline contributed to a more than 10% drop in PLUG’s share price in the last month.

However, the $70 million expected from the 55-megawatt electrolyzer has not yet been recognized. The company has received cash for a large portion of this future revenue. Moreover, it anticipates revenue growth through the deployment of an additional 100 megawatts of electrolyzers by the end of the year.

On the brighter side, the quarter also saw a significant improvement in PLUG’s hydrogen-powered storage solutions. The segment’s margin improved during the quarter, thanks to increased production capacity at Georgia’s plant and strategic price increases across the hydrogen product portfolio. This demonstrates an improved outlook for the company.

Furthermore, in September 2024, Plug Power Inc. (NASDAQ:PLUG) announced the signing of a technical evaluation phase contract for 25 megawatts of electrolyzers for a green methanol project in Portugal. This project is expected to generate 80,000 tons of green methanol annually, which will be utilized in heavy industry and mobility applications.

As of Q2 2024, 15 hedge funds have collectively invested $10.7 million in the company according to Insider Monkey’s database. Along with that, analysts have predicted an increase of 174% in the share price, earning it a spot on our list of best battery stocks to buy.