Today, fuel cell stocks are in focus for investors. Shares of Plug Power (NASDAQ:PLUG), Bloom Energy (NYSE:BE) and FuelCell Energy (NASDAQ:FCEL), are all trading between 2% and 5% higher at the time of writing.
Indeed, this move today reverses what has been a rather bearish trend among fuel cell stocks in recent months. Once a hyped-up growth sector with burgeoning expectations, investors have largely shifted their capital to other high-growth sectors of late. Accordingly, those who have remained bullish on the green hydrogen space have largely been awaiting some catalysts to look at for hope.
Today, it appears a few catalysts are materializing for these fuel cell stocks. Let’s dive into what investors are looking at with these three big players today.
Key Catalysts Driving Fuel Cell Stocks Higher
Among the key catalysts investors are watching right now is sentiment across the sector. Various reports have pointed out that carmakers such as BMW (OTCMKTS:BMWYY) and Volkswagen (OTCMKTS:VWAGY) have engaged in plans to invest in hydrogen fuel cell infrastructure and prototypes. This speculation has driven investors to consider whether green hydrogen vehicles are really a possibility, given the strength the electric vehicle (EV) battery market has seen in terms of market share thus far.
In addition to this vote of confidence from big time automakers, Plug Power has announced plans to build the largest green hydrogen production facility on the West Coast. This facility will reportedly be able to handle 30 tons of LH2 per day. That’s a big boost for investors bullish on the ability of the green hydrogen sector to truly go national. Infrastructure continues to be the key hinderance to mass acceptance of this technology. Accordingly, this is a very important catalyst for the entire sector, should Plug Power follow through.
Accordingly, on the basis of these factors, analysts have become bullish on this sector’s potential. Today, a Piper Sandler analyst piped up about Plug Power’s prospects given its infrastructure investment and the potential for additional announcements during the company’s upcoming analyst day. These factors earned PLUG stock an upgrade. It appears its peers are following the lead PLUG stock took this morning with this news.
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.