Plug Power, Capri, and Frontline: Top Mid Cap Gainers Last Week (Jan 6-10) - Should You Add Them to Your Portfolio?
Sunday, Jan 12, 2025 10:03 am ET
3min read In the week of January 6-10, 2025, several mid-cap stocks made significant gains, with Plug Power (PLUG), Capri Holdings (CPRI), and Frontline (FRO) leading the pack. As investors look to diversify their portfolios, these stocks have caught the eye of many. But should you add them to your portfolio? Let's take a closer look at each company and their recent performances.
1. Plug Power (PLUG):
* PLUG stock price surged from a low of $1.61 in September 2024 to a high of $3.30 by January 10, 2025.
* Analysts have a "Hold" rating on PLUG stock, with a 12-month price forecast of $3.82, indicating a 33.10% increase from the latest price.
* The company's hydrogen fuel cell systems maker reported weak third-quarter results and provided FY25 guidance, which led analysts to revise their price targets or estimates.
* The U.S. Treasury's final guidance on the 45V Production Tax Credit set the stage for a greener hydrogen future, which could benefit PLUG.
2. Capri Holdings (CPRI):
* CPRI stock price increased by 11.00% in the last month and 44.92% in the last three months, despite a significant drop in the past year.
* Capri Holdings has a "Buy" rating from 11 analysts, with a 12-month stock price forecast of $27.55, indicating a 16.20% increase from the latest price.
* The company is being sued for securities law violations, and investors are urged to contact law firms to discuss their options.
* Italy's Prada is reportedly considering buying Versace from Capri Holdings, which could potentially boost the company's value.
3. Frontline (FRO):
* FRO stock price increased by 12.00% in the last month and 45.00% in the last three months, despite a significant drop in the past year.
* The company has a "Strong Buy" rating from 4 analysts, with a 12-month stock price forecast of $26.08, indicating a 51.25% increase from the latest price.
* Frontline reported mixed third-quarter results, with revenue rising 29.9% year-over-year to $490.4 million, surpassing the $361.42 million consensus. However, reported spot TCEs for the quarter were below expectations.
* The company cut its dividend by 45% to $0.34, which may have impacted investor sentiment.
When considering adding these stocks to your portfolio, it's essential to weigh the risks and challenges they face:
* PLUG:
+ High short interest (204.87 million shares, 22.48% of outstanding shares)
+ High debt levels (Net cash position: -$834.69 million or -$0.92 per share)
+ Volatile stock price (Beta: 1.79)
* FRO:
+ High debt levels (Total debt: $928.63 million)
+ Volatile stock price (Beta: 1.79)
+ Market uncertainty and geopolitical risks in the tanker market
In conclusion, Plug Power, Capri Holdings, and Frontline have all shown significant gains in the past week, but investors should carefully consider the risks and challenges each company faces before adding them to their portfolios. While these stocks may offer attractive opportunities, it's crucial to conduct thorough research and stay informed about the latest developments in each company's sector.
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