In the stock market today, there has been an increasing focus on hydrogen stocks. This came after Plug Power (PLUG Stock Report) received a $1.5 billion strategic investment from South Korean conglomerate SK Group. The agreement comes at a time of brisk demand for clean energy. If anything, this partnership suggests that a gradual shift from fossil fuel energy is happening right now.
What’s more, under a Biden administration, the U.S. will likely see significant investments in hydrogen infrastructure over the coming decade. The president-elect Joe Biden has an ambitious plan for a clean energy future. And he’s rather loud with his plan. 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. Therefore, it’s really not surprising that green hydrogen stocks are grabbing headlines as of late. For these reasons, investors have been looking for the best hydrogen stocks to buy that could continue to skyrocket under Biden’s energy plan.Should You Buy Hydrogen Stocks Today?
If you have been paying attention to the stock market in recent months, you would know that hydrogen stocks not only help to power our daily lives but also our portfolio. Clean-energy ETFs have been climbing steadily over the past year. Especially more so this week with the ‘Blue Wave’ that we are looking at. For starters, iShares Global Clean Energy ETF (ICLN Stock Report) is a convenient way to bet on the sector if you find it tedious to choose winners from losers.
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 in recent years. 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.
Now, things may change 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. 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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- Bloom Energy (BE Stock Report)
- FuelCell Energy (FCEL Stock Report)
- Ballard Power Systems (BLDP Stock Report)
First up, Bloom Energy (NYSE: BE) is one energy stock worth taking a closer look at. Since its inception, the fuel cell company has been selling auxiliary power to large commercial buildings. Sure, the business has been enjoying good growth and operating costs have also been declining steadily. But we all know this won’t disrupt the energy industry no matter how we put it. Instead, it is the company’s forays into hydrogen energy that is putting it in the limelight.
The stock saw a series of downgrades from analysts from the beginning of December 2020. It didn’t take long before the bulls started taking charge again. This came after upgrades from Johnson Rice and Morgan Stanley. Of course, you could say that the upward movement in BE stock benefited from the positive commentary. But there’s also a good chance that the company’s growing interest in the hydrogen economy is the reason for its recent bullishness.
Recall in July last year, Bloom Energy announced a massive deal with SK Engineering and Construction (SK E&C) in South Korea. In essence, Bloom Energy will be working to supply fuel cells powered by hydrogen energy. Admittedly, this is a step in the right direction for the upcoming energy company as the South Korean government is looking to shift towards renewable energy. Could this be enough to make BE stock a top hydrogen stock to buy? Your guess is as good as mine.Top Hydrogen Stocks To Buy For 2021 & Beyond #2 FuelCell Energy
FuelCell Energy (NASDAQ: FCEL) is a global leader in fuel cell technology. FCEL stocks also skyrocketed on Wednesday’s trading session. There was no company specific news that could send its stock higher. But if we are to relate, you could probably assume it has got to do with the Georgia voters. You could almost say that they are in favor of the Green New Deal. This is the same reason why Bloom Energy and Plug Power felt the lift on Wednesday’s trading session. And many are speculating this could be just the beginning of another massive rally for 2021. For the uninitiated, the Green New Deal could potentially provide fuel cell subsidies that were lacking in the latest stimulus bill.
From the company’s third-quarter fiscal posted in September, the company reported a revenue of $18.7 million. Company CEO, Mr. Few had this to say about the industry, “The hydrogen economy is currently enjoying unprecedented political and business momentum, and we are well-positioned to capitalize on opportunities consistent with our goals.” The company has invested heavily to advance its innovative technologies. This in turn will enable hydrogen-powered cars and trucks to cleanly operate globally on a larger scale. FuelCell Energy will also enable hydrogen to repower existing combustion engines to deliver zero-carbon power and extend the economic life of existing power generation assets.
Speculators are betting that the change in administration will result in a boom for the hydrogen economy. Having said that, FuelCell is in a good position to market its hydrogen technology platform. This could fuel the company’s growth for years to come. Will these reasons be enough for you to own FCEL stock?Top Hydrogen Stocks To Buy For 2021 & Beyond #3 Ballard Power Systems
Last on the list of top hydrogen stocks to watch this week is Ballard Power Systems (NASDAQ: BLDP). The Canadian-based company is a global provider of innovative clean energy and fuel cell solutions. The company develops and manufactures proton exchange membrane fuel cell products.
The company reported its latest third-quarter earnings in November. They reported a 4% year-over-year increase in total revenue. A big piece of this was due to the 161% year-over-year increase in its Heavy-Duty Motive revenue. Ballard also reported an increase in shipments of fuel cell products to China. It also notched a 540% surge in Backup Power revenue at the same time due to an increase in shipments to European customers.
In mid-December, Ballard announced a collaboration with Eltek Nordic, a Norwegian power conversion company. The deal will see Ballard providing its fuel cell backup power system for telecom networks and other critical communication infrastructure.
In the same month, Ballard also announced that it would be delivering fuel cell modules to power 10 electric buses in the Netherlands. In fact, Ballard’s client stated that it is keen to deploy more buses with Ballard’s systems in European cities. With these exciting developments, could BLDP stock deserve a spot on your watchlist this week?