What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Renewable Energy company Plug Power (NASDAQ: PLUG) jumped 5.4%. Is now the time to buy Plug Power? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company Sabre (NASDAQ: SABR) jumped 5.1%. Is now the time to buy Sabre? Access our full analysis report here, it’s free.
- Boat & Marine Retailer company OneWater (NASDAQ: ONEW) jumped 5.1%. Is now the time to buy OneWater? Access our full analysis report here, it’s free.
- Sit-Down Dining company Kura Sushi (NASDAQ: KRUS) jumped 5.1%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free.
- Travel and Vacation Providers company American Airlines (NASDAQ: AAL) jumped 5.2%. Is now the time to buy American Airlines? Access our full analysis report here, it’s free.
Zooming In On Plug Power (PLUG)
Plug Power’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 39.2% on the news that the company locked in a new loan of up to $525 million, boosting its cash pile and providing more headroom to support operations and future growth plans.
It also shared strong early sales for the first quarter of 2025, beating Wall Street's estimates. Q1 2025 revenue guidance was estimated at around $130 million to $134 million.
Looking ahead, PLUG forecasted second-quarter 2025 revenue between $140 million and $180 million, aligning closely with analyst consensus and reinforcing confidence in its near-term outlook.
Plug Power is down 43.8% since the beginning of the year, and at $1.31 per share, it is trading 60.8% below its 52-week high of $3.34 from July 2024. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $240.37.
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