Today, fuel cell stocks are in focus for investors, as the stock market surges forward. A range of high-growth stocks are on the move today as risk-on sentiment appears to be taking hold.
For investors in fuel cell stocks such as Ballard Power (NASDAQ:BLDP), Plug Power (NASDAQ:PLUG) and FuelCell Energy (NASDAQ:FCEL), today has been a very good day. Each of these fuel cell stocks have advanced between 4% and 8% at the time of writing.
These moves come as this sector has seen significant volatility of late. Indeed, investors appear to have taken a breather from these high-growth stocks in recent weeks. High valuations and a relative lack of catalyst have been the main culprits.
That said, long-term investors still have reasons to like these alternative energy plays. The global economy is shifting toward renewable energy in a big way. And getting in on the right side of such a major catalyst requires foresight and a strong stomach.
Today, positive catalysts have materialized, taking these stocks higher. Let’s dive into what investors are looking at right now.
Fuel Cell Stocks Higher on Two Key Catalysts
Among the biggest catalysts investors in fuel cell stocks have been watching is President Joe Biden’s upcoming infrastructure bill. A vote scheduled to take place on the larger spending bill, including funding for the green hydrogen space, is set for Oct. 1. According to recent reports, the prospects for this bill to be passed are looking better by the day.
Speaker Nancy Pelosi appears to be optimistic this bill has enough bipartisan support to be passed. Currently, the house is working on putting together a $3.5 trillion package that is acceptable to congress. This $3.5 trillion number has been agreed to by the Senate, and the House is simply working out the details. Indeed, should this package be passed with the support investors are expecting for the hydrogen sector, fuel cell stocks stand to benefit in a big way.
Another key catalyst investors are watching closely is a big move by China into the green hydrogen space. Indeed, Chinese fuel cell stocks have taken off, as investors expect government investment in this sector. It appears the infrastructure race is on. And given the global nature of fuel cell stocks, these companies are eager to pick up a piece of what looks to be a growing pie.
Given the unfavorable Chinese regulatory environment toward tech, investors appear to be gravitating toward stocks with explicit support. Today, companies operating in the hydrogen and fuel cell space are on watch.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
