2 "Buy Rated" Green Energy Stocks on the Robinhood 100

: NIO | NIO Inc. ADR News, Ratings, and Charts

NIO – The clean industry sector has long been highly coveted by the Millennial generation. The sector is currently seeing off-the-charts demand as economies globally appear to be finally recognizing the sector’s value. And with President-elect Joe Biden eyeing a $2 trillion green new deal, green energy companies are perceived as well-positioned to grow through substantial capital investments and higher demand for their products. Witness NIO (NIO) and Plug Power (PLUG), which have quickly become two of the most actively traded clean energy stocks and have secured positions on the Robinhood 100 list.

While the Millennial generation has been vocal about concerns regarding climate change for some time now, Boomers are just now taking notice it appears, though in fairness Boomers did  formulate the Paris climate change accord, as well as passing federal regulations to curb pollution.

The sustainable energy industry is witnessing higher trading volume on the discount brokerage platform Robinhood 100, on account of anticipated higher growth potential.

Chinese EV stock NIO Limited (NIO) and Hydrogen fuel cell manufacturer Plug Power Inc. (PLUG) have reported triple digit gains year-to-date, placing hem among the me of the most highly-demanded stocks currently.

NIO Limited (NIO)

Chinese EV manufacturer NIO has gained popularity this year, owing to its unique business model. The company’s flagship vehicles, ‘battery as a service’ subscription plans, and lower cost of production has cast it as the ‘Tesla of China’. The EV manufacturer’s impressive business model and budding expansion plans have made its stock a favorite, with an average trading volume of 161.95 million.

NIO raised $1.30 billion through American depository share offering earlier this year, which is expected to contribute to the research and development of electric car ecosystems and automated technologies, as well as developing the company’s global market presence. It is the first company to launch a ‘battery as a service’ (BaaS) subscription model, allowing customers to purchase electric vehicles and battery packs separately.

On November 6th, NIO launched a 10-kWh battery. With 37% higher energy density, the new battery is expected to boost NIO vehicles to up to 615 km between charges, while improving space utilization by 19.8%. The company hopes this should boost the demand for the batteries and for newer NIO models.

NIO’s total revenues increased 146.4% year-over-year to RMB 4.53 billion in the third quarter ended September 2020. Vehicle sales grew 146.1% versus the same period last year to RMB 4.27 billion. Gross profit rose significantly over this period to RMB 585.80 billion, compared to a negative year-ago value. NIO delivered 5,291 vehicles in November, up 109.3% from the same period last year. And the company delivered 36,721 vehicles till November 30th this year, indicating a 111.1% rise year-over-year.

Analysts expect NIO’s EPS to rise 74.4% in the current quarter, ending December 2020. The company has an impressive earnings surprise history as well: it beat the Street EPS estimates in three t of the trailing four quarters. The consensus revenue estimate of $970.85 million indicates a 138.5% growth year-over-year.

NIO gained more than 2,610% to hit its 52-week high of $57.20 in November since hitting its 52-week low of $2.11 in March.

How does NIO stack up for the POWR Ratings?

B for Buy & Hold Grade

B for Peer Grade

B for Industry Rank

B for Overall POWR Rating.

It is currently ranked #15 out of 115 stocks in the China industry.

Plug Power, Inc. (PLUG)

PLUG designs hydrogen fuel cell systems for the industrial off-road market and stationary power market. As most developed countries have set limits on pollution, the industrial sector in these economies is looking at a huge transformation in their manufacturing systems. With hydrogen fuel cells as one of most efficient green energy technologies, PLUG is expected to witness robust demand for its products and services globally. With millennial investors recognizing this trend early on, PLUG has secured a place in the Robinhood 100 list. The company has an average trading volume of 30.69 million.

On November 30th, PLUG announced a collaboration with Gaussin transportation to develop a commercial suite of ProGen powered vehicles to decarbonize the logistics system. These vehicles are expected to hit the market by early 2021.

PLUG raised approximately $1 billion through an equity offering in November, making it the largest capital raising in the clean energy sector. The company plans to use these funds to solidify its position in this sector, by undertaking strategic growth initiatives. For instance, it is currently building five hydrogen power plants across the country, two of which are expected to be operational by next year.

PLUG recently announced the development of three GenDrive fuel cell products for European industrial and material handling vehicles. It partnered with Apex Clean Energy in September to develop a green hydrogen network across the United States using wind power. This partnership is in tune with PLUG’s goal to decarbonize and use 50% green hydrogen across major industries in the country by 2024. The company has also partnered with Brookfield Renewable Partners to acquire 100% of Brookfield’s renewable energy supplies.

PLUG announced a Memorandum of Understanding (MoU) for demonstrating Plug Power’s ProGen Fuel Cell engine in class 6 and class 8 vehicles which are expected to hit the market by early 2021. It developed a 1kW Progen Fuel Cell system for drone and robotics applications as well. The company has standing agreements with Universal Hydrogen and EnergyOR to develop hydrogen-powered commercial aircrafts, automated guided vehicles, and unmanned aerial vehicles.

PLUG’s gross billings increased 106% year-over-year to $125.60 million in the third quarter ended September 2020. The company deployed a record 4,100 fuel cell systems, up 130% from a year ago.Net revenue increased 79.9% from the same period last year to $106.99 million.

Analysts expect PLUG’s EPS to rise 13.9% in the current year, and at a rate of 25% per annum over the next 5 years. the consensus revenue estimate of $324.08 million for the current year indicates a 36.9% improvement year-over-year.

PLUG has gained more than 875% since hitting its 52-week low of $2.53 in mid-March. the stock hit its 52-week high of $28.70 on November 24th.

It is no surprise that PLUG is rated “Buy” with an “A” for Trade Grade, and “B” for Buy & Hold Grade and Industry Rank. It is currently ranked #27 out of 59 stocks in the Industrial – Equipment industry.

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NIO shares were trading at $46.36 per share on Tuesday afternoon, up $1.25 (+2.77%). Year-to-date, NIO has gained 1,053.23%, versus a 16.64% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...


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