3 Top Hydrogen Stocks To Watch With Long Term Potential
In the stock market today, there has been an increasing focus on renewable energy stocks. They not only help to power our daily lives but also our portfolio. While most of the attention in the stock market has been on electric vehicles (EV) and solar energy, hydrogen energy has also started to gain more attention this year. In fact, there were hydrogen companies dating back to the 1990s. Of course, having the infrastructure for hydrogen transport to support hydrogen vehicles is expensive. Let’s not forget that hydrogen can be flammable and dangerous to store.
Now, with the right technology and existing infrastructure, we have today. The report from AleaSoft, saying that the “Hydrogen will be the fuel of the future and step by step it will replace all current fossil fuels” may have a substantial basis. Since 1975, demand for hydrogen has tripled, according to a report published by the International Energy Agency.
Under a Biden administration, the U.S. will likely see significant investments in hydrogen infrastructure over the coming decade. In addition to that, the first of the European Union’s three-stage strategy to focus on hydrogen as a clean energy solution is already underway. Investors could expect to see demand for hydrogen energy to pick up relatively quickly. As the prospects for hydrogen stocks seem to be very promising, let’s take a closer look at these three top hydrogen stocks that could potentially bring great returns to your portfolio.
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Top Hydrogen Stocks To Watch Now: PlugPower
Renewable energy company Plug Power (PLUG Stock Report) has been riding on highs recently. The company’s stock has increased by over 700% this year and traded at $27.20 as of 10.20 a.m. ET. The company manufactures zero-emission fuel cell products that help generate electricity. The company focuses on economically viable and sustainable power solutions. They have a wide range of customers from automotive to data centers.
From its latest quarterly results on November 9th, the company delivered gross billings of $125.6 million, more than double the year-earlier figure. The company also reported revenue totaled $107 million, up 80% from $59.5 million a year earlier. “We remain focused on building the green hydrogen economy in an electrified world,” the company said. “The improvement” in Q3 was “driven by growth in sales, ongoing cost reductions, and the increasing leverage on operating costs.”
The company has recently completed its acquisition of United Hydrogen and Giner ELX as part of the company’s green hydrogen strategy. Plug Power has also engaged with multiple locations to build a center-of-excellence fuel cell and electrolyzer stack Gigafactory. To top things up, Plug Power said it would be working with strategic partners to build five hydrogen plants in the U.S. The company has started work on the design phase of the first two plants and expects to complete them by the end of 2022. With that in mind, should investors be on the lookout for PLUG stock?
Top Hydrogen Stocks To Watch Now: Bloom Energy
Bloom Energy (BE Stock Report) stock has popped nearly 10% on Wednesday’s intraday trading. Sure, having Biden as the president-elect helps. With Joe Biden’s promise to spend $1.7 trillion on renewable energy infrastructure, you could say it is one of the reasons for BE stock’s meteoric rise lately. However, it’s not easy to say exactly where a business is going to be a decade from now. But thankfully, investors can have some good ideas based on the company’s road map.
The company has been gaining attention as a pure-play fuel-cell stock. The company aims to redefine the electric power market through its distributed, on-site electric power solution. Its solution can deliver highly reliable, uninterrupted power that is also clean and sustainable. On top of that, it could also use its electrolyzers to make hydrogen, which goes into the fuel cells. The company is certainly not keeping their hydrogen ambitions hidden. They want a piece of the hydrogen economy. This would potentially be huge considering Europe in particular. That’s because the governments there plan to invest hundreds of billions of euros in this area by 2050.
Now, nobody can say for sure if hydrogen will become a major source of fuel in the years to come. Of course, wind and solar prices have been coming down, excess electricity from these sources could be used to power electrolyzers, which make hydrogen. It appears that Bloom Energy is in a good position to benefit from growth in its segment of the energy market. With all that in mind, would BE stock be a top hydrogen stock to buy and hold for years if not decades?
Top Hydrogen Stocks To Watch Now: FuelCell Energy
FuelCell Energy (FCEL Stock Report) is another hydrogen stock making new highs this year. But it’s meteoric rise among other battery makers are also worth the mention. After its stock rose more than 50% on Monday’s intraday trading, the company made another 15% jump before the Thanksgiving holiday. Now you may be thinking, what’s the driving force behind such a surge?
If you come across FuelCell for the first time, the company is one of the leading players in the fuel cell niche. And because of its role in this market niche, FCEL stock has been red hot in recent weeks. With investors continuing to remain bullish on hydrogen, it’s no surprise why the stock has been moving higher. Of course, news of the United Nations wanting to phase out coal provided another boost. In addition, the hype surrounding the electric vehicle space has led to spillover effects on fuel cell companies. That’s because fuel cell electric vehicles are a potential alternative to the more common battery electric vehicles.
Hydrogen stocks have gained a lot of attention in recent months. That’s partly due to expectations that a Biden administration will accelerate the switch to renewable energy. Nevertheless, one should be aware that the implementation of new initiatives can take time. FuelCell’s third-quarter results may have disappointed some investors. But many have looked past that and are now focusing on the future potential of the company. Considering that, will you be adding FCEL stock to your watchlist?