PLUG - Why Clean Fuel Stocks Jumped on Monday
Shares of companies developing cleaner ways to fuel commercial vehicles had a big day today on the back of rising oil prices, an analyst upgrade, and new regulations in California. Shares of Plug Power (NASDAQ: PLUG) jumped as much as 20.9%, Ballard Power Systems (NASDAQ: BLDP) was up 17.1% at one point, and Clean Energy Fuels (NASDAQ: CLNE) rose 10.9%. At the market's close, the three stocks were up 17%, 13.8%, and 9%, respectively.
The first positive is that WTI oil traded up 2.8% today as investors bet that demand would rise despite a growing COVID-19 outbreak. Whether it's fuel cell companies like Plug Power and Ballard Power Systems or a natural gas company like Clean Energy Fuels, rising oil prices can often push shares higher short term.
On the analyst side, Roth Capital raised its rating of Ballard Power to buy from neutral and put a $20 price target on the stock. That bump likely helped Plug Power, which often trades with Ballard's stock.