Plug Power Inc PLUG shares are trading higher, closing Monday up 2.31% to $2.21, rebounding some 12% off the stock’s session low. Major indexes are lower Monday amid a sell-off in tech stocks and concerns over an economic slowdown following recent U.S. economic data.

Plug Power's stock is particularly sensitive to interest rate changes and broader market conditions because it's a growth-oriented company heavily invested in the development and deployment of hydrogen fuel cell technology. This sector requires substantial capital for ongoing research, development and scaling production. When interest rate expectations shift, it can directly impact the company’s cost of capital and its stock performance.

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The decrease in the probability of a significant Fed interest rate cut could be detrimental to Plug Power. A lower chance of an aggressive rate cut might lead to higher borrowing costs for Plug Power, as the company relies on debt and equity financing to fund its ambitious growth plans. Investors might anticipate that these higher costs could squeeze margins or slow down expansion, leading to a drop in stock price.

Plug Power, like other high-growth stocks, is also often seen as more speculative. During times of market turbulence, investors might move away from these stocks in favor of more stable investments. As a result, Plug Power's stock could experience sharper declines when market sentiment sours but might also see strong rebounds when conditions stabilize or if the company’s prospects remain strong despite the volatility.

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Is PLUG A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — such as Plug Power‘s page, for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Plug Power does not pay a dividend, but obviously had a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Plug Power will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, PLUG has a 52-week high of $11.50 and a 52-week low of $1.95.