During periods of volatility, high potential alternative energy stocks hold more appeal than high volume mainstream options. Heightened trade tensions are causing uncertainty in the market, but stocks like ITM Power PLC (OTC: ITMPF) are pushing through the dip. ITM is a hydrogen energy company that has consistently increased its revenue for five consecutive years. Here’s why it’s worth a look in August.
From 2014 through to the end of 2018, ITM revenue went from $1.13 million, to $3.28 million annually. Spending and investment is still high, so the company is not yet turning a profit. However, this is not unusual in the alternative energy market where research and development costs are high as the industry grows.
ITM has potential because demand for its fuel products and technologies will grow as fossil fuel reserves deplete. The company develops hydrogen fuel and power-to-gas storage systems that reduce renewable energy waste. It has recently commenced construction of a 10MW hydrogen electrolysis plant in Germany, as well as a global manufacturing plant in England. These investments will help to meet future production demands.
The long term target price of $51 indicates a high level of analyst confidence in the upside for this stock. Buying at today’s price is the ideal way to own ITM shares while the company is still growing.
- 1 Year Price Growth: 70%
- YTD Price Growth: 42%
- 3 Month Price Growth: 07%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.