Plug Power (NASDAQ:PLUG) stock has been very volatile since 2021. After zooming from penny stock to large-cap stock during the late 2020/early 2021 boom in “green wave” plays, this particular “future of energy” play has experienced wild swings.

With this in mind, you may be skeptical that the stock’s latest rally, which has sent it higher by nearly two-thirds over the past month, will have staying power. Over the past 18 months, shares have briefly made similarly parabolic moves, only to pull back and fall to even lower prices.

However, unlike its past comeback attempts, this one could stick. The factor driving it higher now isn’t something that’s temporary in nature. In fact, it may be something that enables the company to accelerate growth and make progress getting to the point of profitability. In turn, still down by more than 50% from its multi-decade high, back to prior price levels.

PLUG Stock and the Inflation Reduction Act

No matter your political views, you can’t deny President Joe Biden’s election was a boon for clean energy stocks. That’s why Plug Power, along with its peers, went on an incredible run between the November 2020 election and Biden’s inauguration in January 2021.

With clean energy a big part of Biden’s platform, there were high expectations his administration would fast-track the push toward a carbon-free U.S. economy. However, this has proved to be easier said than done. Between higher priorities and Congressional gridlock, the level of federal support for alternative energy has been underwhelming in the eyes of investors.

This has played a major role in the underperformance of PLUG stock, along with other “green wave” stocks, since Biden first took office. However, after nearly a year and a half of disappointment, things are changing fast.

With the passage of the Inflation Reduction Act by Congress, and its forthcoming signing into law by the president, the federal government is set to provide around $369 billion to speed up the adoption of fossil fuel alternatives. Yet while shares have moved higher in response to this development, further long-term upside may remain.

A Post-Bill Pullback May Work in Your Favor

With such an incredible jump in price, it’s possible PLUG stock temporarily pulls back. The excitement about this bill could take a breather, with focus shifting back to recent negatives with the company, like its latest earnings report.

Last quarter, the company reported year-over-year (YOY) revenue growth, but this figure ($151.3 million) fell short of expectations. Also, losses for the quarter (30 cents per share) were wider than expected. They were substantially higher than the 18 cents per share loss reported for the prior year’s quarter. Short-term issues like supply chain bottlenecks are for now affecting its results.

Even so, any sort of pullback could work in your favor. While it may give back some of its gains in the immediate term, it still has a shot of climbing even higher in the long term. Why? The Inflation Reduction Act is a “game changer” for Plug Power.

At least, that’s how Plug’s CEO, Andrew Marsh, recently put it. In Marsh’s view, the clean energy provisions of this bill will spur demand for the company’s electrolyzer and green hydrogen businesses. This may enable the company, after several quarters of disappointment, to start reporting results that come in ahead of expectations.

The Verdict on PLUG Stock

Plug Power earns a B rating in my Portfolio Grader. After its stunning rise in recent weeks, excitement for shares could take a breather. I wouldn’t buy on the expectation that another big jump in the short term is in store.

But while it’s made a big leap, you haven’t missed the boat here. Whether at today’s prices, or on further weakness, shares remain a worthwhile long-term opportunity.

The market’s response to news of the Inflation Reduction Act is not an overreaction. This bill has a strong chance of having a material impact on Plug Power’s future results.

Plug’s future growth could come in faster than currently anticipated. It may end up having a  shorter-than-expected path to consistent profitability. Both will help to justify a further move higher for PLUG stock in the long term.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.