Top Stock Picks for 2021: Plug Power
Every day for the next two weeks, we're going to highlight one of Schaeffer's top 14 picks for 2021. Up next is an alternative energy darling that has been a favorite in this space for a while now. To access the entirety of the 2021 report, click here.
Alternative energy name Plug Power Inc (NASDAQ:PLUG) is fresh off a historic year, on 2020 that saw an absurd 973% gain. And if the COVID-19 vaccine sends oil prices higher in 2021 -- as the economy reopens and demand increases -- the security may become even more popular, with investors quickly moving into renewable energy stocks as U.S. consumers experience sticker shock after a long period of low gas prices.
While Plug Power stock is currently trading below record levels, the shares broke out above multi-year highs in August, when the security rallied past potential resistance at the $12 level – the site of its 2011 and 2014 peaks.
A short squeeze could fuel additional gains for the security going into 2021, too, as this year’s positive price action did very little to convince shorts about the company’s growth prospects. In fact, short interest hit a multi-year high halfway through November, and the 66.53 million shares sold short account for a whopping 28.9% of the stock’s available float.
Todd is the Senior Vice President of Research at Schaeffer's Investment Research and has been with the research firm since 1993. Mr. Salamone is a graduate of The Ohio State University with a double major in finance and insurance and risk management. He has over 25 years of options trading experience, emphasizing technical and sentiment analysis in his equity, broad market and sector research. Mr. Salamone is the author of Schaeffer's Monday Morning Outlook, and he has been interviewed on CNBC, Bloomberg Television, Fox Business Network and quoted in several national media outlets such as The Wall Street Journal, Reuters, the Associated Press and others. Todd has trained tens of thousands of traders to be successful options traders.
