Plug Power, Inc. (NASDAQ:PLUG) recently announced that it entered into an agreement with a Fortune 100 customer at the end of 2019. Per the $172 million deal, the company will deploy hydrogen fuel cell across the customer’s distribution network over the next couple of years.
Per the deal, Plug Power will provide the customer with its GenFuel hydrogen fuel, GenDrive fuel cell power, along with storage and dispensing infrastructure, and GenCare aftermarket service.
The integration of Plug Power's hydrogen fuel cells will enable the customer to boost productivity, reduce operational costs and lower greenhouse gas emissions throughout its logistics business. As noted, the company’s expansion into the material handling market, together with its improving sales channel and expansion in the European market will likely enable it to achieve its $1 billion target for gross billings in 2024.
Fuel Cell Market Outlook
Demand for fuel cell technology is increasing on the back of reliability and cheaper-than-conventional power sources. It has become a viable option for vehicles owing to inherent zero emissions. Supported by its robust and ever improving manufacturing platform, Plug Power has delivered more than 30,000 fuel cell units to commercial applications. We believe that the demand for Plug Power’s fuel cell solutions will rise significantly, given the growth in fuel cell market.
In the past three months, this Zacks Rank #4 (Sell) company's shares have gained 45.2% compared with 24.6% growth recorded by the industry.
Stocks to Consider
Some better-ranked stocks from the Zacks Industrial Products sector are Intellicheck, Inc. (NYSE:IDN) , ABB Ltd (NYSE:ABB) and DXP Enterprises, Inc. (NASDAQ:DXPE) . While Intellicheck sports a Zacks Rank #1 (Strong Buy), ABB and DXP Enterprises carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intellicheck delivered average positive earnings surprise of 4.76% in the trailing four quarters.
ABB pulled off average positive earnings surprise of 2.89% in the trailing four quarters.
DXP Enterprises delivered average positive earnings surprise of 17.67% in the trailing four quarters.
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