Pink-hot Plug Vitality (NASDAQ:PLUG) stock plunged in mid-August after extensively revered short-seller Citron Evaluation centered the stock in a Twitter (NYSE:TWTR) publish which primarily usually usually usually often usually known as PLUG stock an over-hyped, overvalued bubble stock that may collapse as shortly as extra to $7.Savvy patrons shouldn’t pay pretty a bit consideration to this publish.Citron’s assaults in route of the stock and agency are each inaccurate or misrepresented, and Citron has a protracted historic earlier of being fallacious on PLUG stock along with fully fully fully fully fully fully fully fully fully totally totally fully completely different rising, hyper-growth stocks with a ton of momentum.Plus, the fundamentals underlying Plug Vitality stock defend vigorous. The valuation is a bit stretched. Nonetheless it’s nothing to emphasize about all via the large picture.Internet web, I say ignore Citron, alter to the rally and buy on dips.Acceptable associated associated related associated relevant proper related relevant proper appropriate correct proper right here’s a deeper look.Plug Vitality Will Not Miss Earnings SteeringThe very very very very very very very very very very very very very very first thing Citron says about Plug Vitality all via the Twitter publish is that the company “will miss 2020 revenue guidance by 40%”.That’s usually a really outlandish concern to say, which may nearly positively present wildly inaccurate. For just some causes.First, Plug Vitality has topped earnings estimates for 5 straight quarters, and 7 of the final phrase phrase phrase phrase phrase eight quarters, along with a sturdy 20% earnings beat remaining quarter. To suppose the company is now going to miss third and fourth quarter earnings estimates by an infinite mark seems far-fetched.Second, the clear vitality revolution is gaining momentum all via, notably all via the hydrogen vertical, the place technological developments are turning hydrogen tech proper related relevant proper appropriate correct proper right into a stupendous, cost-effective fairly just a few for optimistic high-usage, condensed end-markets (like warehouses with hydrogen forklifts). Plug Vitality’s progress trajectory speaks to this. Yr-to-date, the company’s revenues are up nearly 40%, on excessive of 32% earnings progress remaining 12 months. As shortly as extra, to suppose that this momentum goes to immediately dry up seems merely as far-fetched.Third, Plug Vitality is doing all your full full full objects acceptable inside the current day so defend sturdy momentum. The company is launching new merchandise, making strategic acquisitions, rising into new end-markets, landing new affords, so on and so forth — the sum of which broadly counsel that this agency’s string of revenue-beating quarters will persist, not end.Fourth, to make it doable for Plug Vitality to miss 2020 earnings steering by 40%, the company ought to report primarily a 50% drop in second half 2020 revenues, after first half revenues are up about 40%. That form of cliff drop in earnings progress merely doesn’t happen all that incessantly, and it very nearly positively obtained’t happen with Plug Vitality.R&D is Not PaltryThe second concern that Citron says about Plug Vitality is that “R&D has been paltry”.This isn’t the case.R&D {dollars} in every 2018 and 2019 measured spherical $34 million, and are on observe to exceed $40 million this 12 months. Excluding 2019 (which is a historic anomaly), that represents barely beneath 20% of full revenues — which is, as you’d rely on, monumental for any agency.By comparability, Tesla R&D spend as a p.c of full revenues was about 5% remaining 12 months.In the long run, scale performs a component associated associated associated related associated relevant proper related relevant proper appropriate correct proper right here. On a raw buck basis, Tesla spends methodology over Plug Vitality on R&D. Nonetheless pointing to scale as a carry out why R&D at Plug vitality is paltry is flawed.The exact actuality is that, for a company of its dimension, Plug Vitality spends as pretty a bit on R&D as anyone else, and arguably extra.No Early Stage Progress Agency is WorthwhileThe third concern Citron says about Plug Vitality is that the company has really not generated a earnings.True. It hasn’t.Nonetheless Tesla didn’t purchase this on a relentless basis until 2019. Actually, there are ton of very sturdy progress firms contained accessible all by means of the market — like Shopify (NYSE:SHOP), Wayfair (NYSE:W) and Roku (NASDAQ:ROKU) — who’ve nonetheless to sustainably generate earnings, nonetheless which soared on Wall Street.The exact actuality is that early stage progress firms shouldn’t be worthwhile. They have to be inserting all their a reimbursement into the enterprise, spending every dime they need to execute on the large picks ahead of them.Plug Vitality isn’t any exception.The company has an unbelievable fully fully fully fully fully fully fully fully totally totally fully completely different in entrance of it in relation to the hydrogen financial system, and administration is executing flawlessly in route of that likelihood by worthwhile new enterprise, creating next-gen tech, launching new merchandise and making strategic acquisitions.So don’t concern about earnings inside the current day. They’ll embrace scale. A complete lot as they did at Tesla.The CEO is Selling, Nonetheless That’s Not WorrisomeThe fourth concern Citron says about Plug Vitality is that “CEO Andy Marsh has sold 95% of his position at an average price of less than $7 per share”.That’s moreover true. Plug Vitality’s CEO has been selling a ton of stock since February.Nonetheless this selling is totally anticipated, par-for-the-course and positively not that worrisome.Insiders promote stock recurrently. Actually, that’s all they’ve been doing for various quarters over at Fb (NASDAQ:FB), Netflix (NASDAQ:NFLX), The Commerce Desk (NASDAQ:TTD), Sq. (NYSE:SQ) and an excessive amount of fully fully fully fully fully fully fully fully fully totally totally fully completely different red-hot, high-quality firms with hovering stock prices.When stocks take off like rocket ships, insiders promote usually. It’s what they do. And it’s really nothing to be all that frightened about.If this selling by Marsh was accompanied by a breakdown all via the fundamentals, then I’d be frightened.Nonetheless it’s not. Actually, the choice is true.Plug Vitality Stock is Expensive, nonetheless Not OvervaluedThe fifth, and shutting concern, Citron says about Plug Vitality is that PLUG stock trades at a “100% premium on EV/sales” to TSLA stock.Per YCharts, this isn’t fully true. PLUG stock trades at 21-times EV to trailing product product product product product product product sales. TSLA stock trades at 15-times EV to trailing product product product product product product product sales.Nonetheless the argument nonetheless significantly holds. PLUG stock is costlier that TSLA stock.This premium is a byproduct of 1 simple actuality: Plug Vitality is methodology earlier in its progress narrative than Tesla, and subsequently, rising fairly extra shortly.Tesla is a $400 billion clear vitality large that already has one of the best selling electrical autos on this planet and regarded one among world’s largest picture voltaic firms. Plug Vitality, contained contained all via the meantime, is a $5 billion clear vitality agency that’s merely starting to disrupt legacy vitality picks with its hydrogen tech.To that end, all via the second quarter of 2020, Tesla’s revenues really dropped 5% year-over-year. Contained all via the equal quarter, Plug Vitality’s revenues rose 18%. Over the following 5 years, Tesla is anticipated to develop revenues at a 24% compounded annual progress price. Over that exact same stretch, Plug Vitality is anticipated to develop revenues nearly twice as shortly, at a 45% compounded annual progress price.So, is PLUG stock costlier than TSLA stock? Constructive.Should it’s? Moreover, optimistic, which suggests the valuation elements launched up by Citron don’t defend pretty a bit water.A Poor Historic earlier with Progress StocksIt’s worth mentioning that Citron Evaluation has a poor historic earlier of shorting hyper-growth momentum stocks.That’s comparable short-seller that repeatedly usually usually often usually known as Shopify a “get rich quick” scheme as shortly as extra in 2017, when the stock was in quest of and promoting spherical $100, and made a daring keep for the stock to retreat to $60. It has since risen elevated than 10X to over $1,000.It’s moreover the equal short-seller that repeatedly usually usually often usually known as Wayfair terribly overvalued in 2015, and slapped a $10 truthful value on the stock. Wayfair stock inside the current day trades above $300.And the equal short-seller that repeatedly usually usually often usually known as Roku “uninvestable” in January 2019. ROKU stock has surged about 4X since then.Citron was moreover lifeless fallacious on its bearish keep a pair of picture voltaic stocks as shortly as extra in September 2019: SolarEdge (NASDAQ:SEDG) and Enphase Vitality (NASDAQ:ENPH). Every of those stocks are up elevated than 100% since Citron talked about they’ve been going to interrupt down.The concepts really goes on and on.I’m not saying you shouldn’t take heed to Citron. I really like pretty just some the stuff they publish, and agree with it as a rule.Nonetheless the company has a observe report of being fallacious on hyper-growth momentum stocks, incessantly underestimating merely how pretty a bit firepower they’ve, and optimistic the one strategies whereby revolutionary and disruptive their enterprise models and utilized sciences are.I take into accounts PLUG stock falls into that class.Bottom Line on PLUG StockIn relation to Plug Vitality stock, don’t take heed to Citron.That’s usually a company — with a poor observe report of shorting hyper-growth, early-stage momentum stocks like PLUG — making false and misrepresented claims just some enterprise that’s fully on fireplace acceptable now.PLUG stock may be weak for just some days.Nonetheless it’ll lastly shake off this momentary headwind.And as shortly attributable to it does, PLUG stock will get as shortly as extra into rally mode as the company sustains large progress behind its sturdy portfolio of value-additive and cost-effective hydrogen tech picks.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for only some years, beforehand working at pretty pretty a variety of hedge funds and all by the interim working his personal funding fund in San Diego. A Caltech graduate, Luke has incessantly been acknowledged as top-of-the-line stock pickers on this planet by pretty pretty a variety of fully fully fully fully fully fully fully fully fully totally totally fully completely different analysts and platforms, and has developed a standing for leveraging his know-how background to go searching progress stocks that ship unbelievable returns. Luke may even be the founding father of Implausible, a social discovery agency backed by an LA-based web enterprise company. As of this writing, he was prolonged SHOP, ROKU, FB, NFLX, TTD, and SQ.