As nations seek new pathways to a cleaner future, ambitious companies like FuelCell Energy (NASDAQ:FCEL) have opportunities to grab market share of the green-energy niche. Investors, meanwhile, can participate and profit by owning shares of FCEL stock.
Yet, not everyone’s convinced of this stock’s value proposition. Or, perhaps some investors have witnessed the stock’s rocket ride in 2020 and are hesitant to make a move.
But there’s no point in hesitating if you truly believe in the growth prospects of a company. As the U.S. transitions into a new administration, investors should consider aligning their strategies with imminent policy shifts.
Besides, the move towards cleaner fuel sources isn’t limited to one nation — or even one continent. In the final analysis, we might find that betting against FuelCell is fighting against a green wave that’s bound to envelop the world sooner or later.
FCEL Stock at a Glance
Both the bulls and the bears have been in control of FCEL stock at various times in 2020. As evidence of this, the stock has an extremely wide 52-week range of $1 to $13.91.
But FuelCell is also a stock that could pop higher at any given moment. So, investors who accumulate shares when they’re low might see the price double, triple or even more.
This past quarter has provided a prime example of this. On Oct. 30, FCEL landed at $2. That was a short-term low for the stock and it felt like the bears were in control of the price action at that time. However, the bulls commandeered FuelCell in November, taking it as high as $11 by the end of the month. As of Dec. 23, the share price hit a high of $13.59 and closed at $11.52.
So, does the market environment here support higher prices in the future?
The Big Cleanup
When it comes to the FuelCell’s potential in the States, recent political developments could prove to be incredibly beneficial to the company. That’s because President-elect Joe Biden has made no bones about his intention to push for cleaner energy in America.
In his climate plan, Biden mentions that “fossil fuels still comprise nearly 80% of global energy use.” That’s actually quite bullish for FCEL stock — this suggests a blue-sky opportunity with plenty of upside potential. Biden’s plan also sets a target date that should capture the attention of prospective FCEL investors: “a 100% clean energy economy and net-zero emissions no later than 2050.”
That’s a green light for makers of hydrogen fuel cells and other clean energy solutions. FuelCell Energy is a top competitor in that space. For instance, the company’s SureSource Storage solution offers “round trip energy efficiency above 70%.”
This is the exact kind of eco-friendly efficiency that companies will need to employ in the coming years. After all, Biden intends to “take action against fossil fuel companies and other polluters who put profit over people and knowingly harm our environment.”
The World Is Going Green
All that said, the United States cannot succeed alone in the push for clean energy. The world has to be on board, too. But fortunately for stakeholders in FCEL stock, other powerful nations are pitching in.
For example, China is pushing for carbon neutrality by 2060. More specifically, “Nine of every 10 vehicles on China’s roads will have to run on non-fossil fuels, while half of aircraft will fly on green hydrogen to put China on track to cutting carbon emissions by 75 to 85 per cent, leaving the residual amount to be offset by removals.”
Meanwhile, the European Union also plans to accelerated the adoption of green hydrogen in order to meet its objective of being “climate-neutral by 2050.” The European Commission even went so far as to call hydrogen fuel “essential” to achieving that goal.
Finally, back in the United States, the Department of Energy provided $26 million in funding to two projects in order to advance hydrogen generation via nuclear reactors. So, in multiple parts of the world, governments are creating welcoming environments for companies like FuelCell Energy to thrive in.
The Takeaway
In a world that’s changing quickly, investors must adapt their strategies or risk being left behind. That’s a shift we’re seeing now, with oil on the decline and the nascent popularity of electric vehicles (EVs) and other clean energy products on the rise.
So, given the international push for green fuel sources — including hydrogen — investors can take a position in FCEL stock and anticipate a favorable macro-environment for years to come.
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.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
