![]() The $1.31 billion and $2.02 billion estimates for the current and next fiscal years indicate changes of +86.3% and +54.7%, respectively. ![]() In the case of Plug Power, the consensus sales estimate of $250.75 million for the current quarter points to a year-over-year change of +65.8%. Therefore, knowing a company's potential revenue growth is crucial. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Plug Power is rated Zacks Rank #3 (Hold). Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Over the past month, the estimate has changed +10.6%. Over the last 30 days, this estimate has changed -3%.įor the next fiscal year, the consensus earnings estimate of -$0.31 indicates a change of +66% from what Plug Power is expected to report a year ago. Over the last 30 days, the Zacks Consensus Estimate has changed -1.9%.įor the current fiscal year, the consensus earnings estimate of -$0.91 points to a change of +27.2% from the prior year. Plug Power is expected to post a loss of $0.26 per share for the current quarter, representing a year-over-year change of +13.3%. ![]() Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Now the key question is: Where could the stock be headed in the near term? The Zacks Manufacturing - Electronics industry, to which Plug Power belongs, has gained 12.2% over this period. Shares of this alternative energy company have returned +44.5% over the past month versus the Zacks S&P 500 composite's +6.1% change. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Plug Power ( PLUG Quick Quote PLUG - Free Report) is one of the stocks most watched by visitors lately.
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