Fundamentally, market participants willing to accept volatility risk in exchange for outsized reward possibilities should consider top hydrogen stocks for investment. According to ChatGPT, “[i]nvesting in hydrogen has gained significant attention in recent years due to its potential to play a crucial role in the global energy transition.”
Indeed, Grand View Research states that the global hydrogen generation market size reached a valuation of $155.35 billion in 2022. Further, experts project that the segment will expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. At the culmination of the forecast period, the sector could ring up revenue of $317.39 billion. That’s a compelling reason to consider the best hydrogen stocks to buy.
Also, ChatGPT states several attributes for hydrogen, including clean energy transition, energy storage solutions, government support and investment, and emerging market potential. To be sure, the artificial intelligence protocol warns about risks such as regulatory uncertainties. Still, if you’re willing to take a shot, these might be great ideas for high-return hydrogen stocks (according to the chatbot).
Plug Power (PLUG)
Billed as a leading provider of hydrogen fuel-cell solutions for electric mobility and stationary power applications, Plug Power (NASDAQ:PLUG) is one of the riskiest ideas for top hydrogen stocks for investment. In the trailing one-year period, shares stumbled more than 23% of equity value. At the same time, momentum has picked up recently. In the trailing month, PLUG soared nearly 39%.
In particular, the bulls bid up the equity based on anticipation of the company’s investor day forum during the midweek session. Prior to the big day, Plug Power CEO Andy Marsh hinted at the enterprise’s expansionary endeavors. Earlier, Marsh stated that “[t]his operational growth supports our near-term revenue goals of $1.4 billion in 2023 and our long-term target of achieving annual sales of $20 billion by 2030.”
To be fair, Gurufocus labels PLUG as one of the more troubled opportunities in the market. Specifically, it assigned six red flags associated with the financials. On the other hand, Plug’s recent revenue growth trend is undeniable. For speculators, PLUG may be one of the best hydrogen stocks to consider.
Ballard Power Systems (BLDP)
A global provider of clean energy solutions, Ballard Power Systems (NASDAQ:BLDP) has a central vision to deliver fuel cell power for a sustainable planet. Per its public profile, the company’s zero-emission fuel cells are enabling the electrification of mobility, including buses, commercial trucks, trains, marine vessels, passenger cars, and forklift trucks. To be fair, though, BLDP ranks among the riskiest top hydrogen stocks for investment.
In the past 365 days, BLDP slipped more than 8%. However, since the January opener, shares popped up nearly 13%. According to TipRanks, Ballard has driven higher in recent sessions because of its announcement of innovative manufacturing technology. The innovation should cut costs and boost production capacity for its next0-generation graphite bipolar plates.
To be upfront, Gurufocus also warns that Ballard suffers from shoddy financials, based on negative per-share revenue growth trends as well as margins that sit well below breakeven. However, Ballard also benefits from a cash-rich balance sheet. If you want to speculate, BLDP could be one of the stocks for millionaire status.
Air Products and Chemicals (APD)
An industrial gas company, Air Products and Chemicals (NYSE:APD) involves itself in the production and distribution of hydrogen. Also, the company helps accelerate the development of hydrogen infrastructure. According to its corporate profile, Air Products has been in operation for over 80 years. Since the beginning of this year, APD dipped 7% in the charts. Nevertheless, it makes for a solid case for top hydrogen stocks for investment.
For one thing, Air Products represents a known commodity. As the Biden administration continues to build out and restore American infrastructure, the company should be a downwind beneficiary. After all, long-established enterprises should command greater influence, respect, and reputation over purely aspirational firms. For investing in hydrogen stocks, APD offers a steady hand.
Also, APD enjoys credible financials. Per Gurufocus, the company’s three-year revenue growth rate (on a per-share basis) clocks in at 12.3%, above 60.75% of its peers. Also, its trailing-year net margin is 16.58%, outflanking 86.9%.
Probably not a household name among most American investors, Norway’s Nel (OTCMKTS:NLLSF) nevertheless could rank among the top hydrogen stocks for investment. Per its public profile, Nel is a global company providing solutions for the production, storage, and distribution of hydrogen from renewable energy sources. It performs reasonably well too, gaining over 7% in the over-the-counter market in the past year.
Early last month, Nel announced its plans to build a new automated gigawatt electrolyzer manufacturing facility in Michigan. Per its website, when fully developed, the facility will employ more than 500 people and be among the largest electrolyzer manufacturing plants in the world. While perhaps not the most popular name, Nel could eventually become one of the hydrogen stocks for millionaire status.
As a heads up to investors, though, Nel’s financials represent a mishmash. Per Gurufocus, the company’s profit margins sit well in negative territory. As well, it might be a tad overvalued. On the other hand, it features a three-year revenue growth rate of 11.3%, above 67% of its peers. Also, it enjoys a cash-rich balance sheet.
ITM Power (ITMPF)
Another foreign enterprise among the top hydrogen stocks for investment per ChatGPT, U.K.-based ITM Power (OTCMKTS:ITMPF) is an energy storage and clean fuel company. Per its public profile, ITM designs, manufactures and integrates electrolyzers based on proton exchange membrane technology to produce green hydrogen using renewable electricity and tap water.
Though scientifically relevant, ITMPF rates on the speculative side of hydrogen opportunities, having lost more than 20% of equity value since the beginning of this year. As well, prospective investors should note that at the time of writing, shares trade just under a buck. Because it’s a literal penny stock, you should approach ITMPF with extreme caution. That said, the underlying solid oxide electrolyzer cell market should see significant growth in the years ahead.
As with other promising but speculative ideas for best hydrogen stocks, ITM Power presents a very mixed bag financially. From an investment standpoint, the deeply negative print for both operating and net margins is worrisome. At the same time, ITM benefits from a cash-rich balance sheet. Thus, it might work out for patient gamblers.
FuelCell Energy (FCEL)
Focused on the development and commercialization of fuel cell power plants for electric power generation, FuelCell Energy (NASDAQ:FCEL) is one of the most popular ideas among the top hydrogen stocks for investment. According to its corporate profile, FuelCell is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments, and municipalities.
To be sure, FCEL presents significant risks for prospective investors. In the past 365 days, FCEL dropped 16% in equity value. However, in the trailing-year framework, it returned nearly 5%. The security turned in a positive performance recently due to FuelCell’s revenue more than doubling, based on its disclosure for its fiscal second quarter. From a speculator’s view, FCEL could be one of the high-return hydrogen stocks.
Still, investors need to be careful. According to Gurufocus, FuelCell’s three-year revenue growth rate sits at 32.4% below zero. Its profit margins also sit in negative territory. However, it does enjoy decent stability in the balance sheet.
A global industrial gas and engineering company, Linde (NYSE:LIN) represents another stable, credible name among top hydrogen stocks for investment. According to its corporate profile, Linde lives its mission of making its world more productive every day by providing high-quality solutions, technologies, and services which are making the customers more successful and help to sustain and protect the planet.
In the past 365 days, LIN gained about 24% of its equity value. More gains could be on the horizon as Linde continues to flex its business muscles. In late April of this year, Dow (NYSE:DOW) selected Linde as its clean hydrogen and nitrogen partner for its proposed net-zero carbon emissions ethylene and derivatives complex in Canada. Thanks to Linde’s reputation, more hydrogen-related projects should be forthcoming.
Financially, Linde offers a much more palatable profile compared to speculative high-return hydrogen stocks. For instance, the company’s trailing-year net margin clocks in at 13.46%, beating out 81.89% of its peers. Also, Linde hit 8 out of 9 in the Piotroski F-Score, indicating high operational efficiency.
|APD||Air Products & Chemicals||$288.84|
On the date of publication, Josh Enomoto 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.