The hydrogen story could get explosive, creating a solid list of the best hydrogen stocks to buy. In fact, according to the Hydrogen Council, it’s central to reaching net zero emissions and limiting global warming to 1.5 degrees Celsius. And according to the International Energy Agency, global hydrogen demand will need to double from about 94Mt in 2021 to more than 180 by 2030. Europe may need to see a six-fold increase in demand by 2050.
Even better, analysts at Goldman Sachs say the hydrogen market could be worth nearly $11 trillion by 2050. This simply means it’s time to get bullish on hydrogen stocks, as even Morgan Stanley says the market could be worth $11 trillion. With that in mind, here are three “no-brainer” hydrogen trades to consider.
| Ticker | Company | Price |
| HJEN | Direxion Hydrogen ETF | $15.26 |
| BE | Bloom Energy | $22.14 |
| PLUG | Plug Power | $14.34 |
Direxion Hydrogen ETF (HJEN)
At the top of this list of the best hydrogen stocks to buy is the Direxion Hydrogen ETF (NYSEARCA:HJEN). Not only does it offer broad diversification, but it also does so at a low cost. With an expense ratio of 0.45%, the $15 ETF offers exposure to 30 stocks involved with hydrogen production and generation, hydrogen storage and supply, fuel cell and battery, and systems and solutions. Some of the ETF’s top holdings include Plug Power (NASDAQ:PLUG), Bloom Energy (NYSE:BE), Ballard Power (NASDAQ:BLDP), Air Products and Chemicals (NYSE:APD), and Doosan Fuel Cell Co.
Bloom Energy (BE)
Another top “no-brainer” hydrogen stock to buy is Bloom Energy, which manufactures solid oxide fuel cells used by retailers, healthcare centers, and auto manufacturers.
Granted, its fourth-quarter net loss grew to $47.17 million, or 23 cents a share, from a year-earlier loss of $33.32 million, or 19 cents a share. However, its adjusted profit was 27 cents, which was well ahead of expectations of nine cents.
Revenue jumped to $462.58 million from $342.47 million, year over year. That was also above expectations for $398.7 million. And, looking forward, the company expects 2023 revenue of $1.4 billion to $1.5 billion, compared to expectations of $1.48 billion.
Plug Power (PLUG)
Like many of its peers, Plug Power was beaten up over the last year. However, as the hydrogen story explodes, Plug Power could be a standout winner. For one, the company has been signing deals with major companies, including Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD), Nike (NYSE:NKE), Boeing (NYSE:BA), and FedEx (NYSE:FDX) to name a few.
Two, UBS analyst Manav Gupta initiated coverage of the PLUG stock late last year with a buy rating and a price target of $26. “Hydrogen could be a $10 trillion market by 2030, and PLUG aims to be a one-stop shop and market leader in the entire space,” Gupta said, as quoted by Barron’s. “Investors are under appreciating the growth potential as we forecast $5 billion in sales by 2026 (from current $900 million) vs Street at $3.4 billion.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
