SPECIAL REPORT The Top 7 Stocks for 2024

Betting Big: 3 Hydrogen Stocks Primed for a Breakout.

Advertisement

  • Don’t underestimate the upside of the hydrogen stocks below.
  • Plug Power (PLUG): Recent analyst upgrades and expected free cash flow growth give it great potential.
  • Air Products & Chemicals (APD): The company has a positive return on equity and a superb outlook.
  • Linde (LIN): This pick has great technicals and strong upside momentum.
hydrogen stocks to buy now - Betting Big: 3 Hydrogen Stocks Primed for a Breakout.

Source: Shutterstock

The emergence of clean energy solutions has led to the rise of hydrogen stocks to buy now. The companies have strong catalysts behind them, which could attract investor enthusiasm. Many of the companies on this list already built up good momentum and look primed for takeoff.

Despite the economy throwing mixed signals, there’s still a good chance these companies could move to new heights. They are suitable for holding as a short-term momentum play or a long-term investment.

So here are the best hydrogen stocks to buy now.

Plug Power (PLUG)

Person holding cellphone with logo of American hydrogen fuel cell company Plug Power Inc on screen in front of web page Focus on phone display
Source: Wirestock Creators / Shutterstock.com

Plug Power (NASDAQ:PLUG) is poised to be a significant player in the global green hydrogen market. Plug Power is well-positioned to capitalize on the growing demand for green hydrogen, especially in sectors that are challenging to decarbonize.

There have been some developments for PLUG stock, which could make investors feel bullish. Northland analyst Abhishek Sinha raised Plug Power’s rating, highlighting its path to cash flow generation and forecasting break-even margins by 2023. Free cash flow is an important objective measure of a company’s intrinsic value.

On the technicals for PLUG stock, things also look attractive. It trades below its long-term moving averages, which implies additional upside. It’s also below its consensus analyst price target of $17.93.

Air Products & Chemicals (APD)

Air Products (APD) logo on the Arts Quest building, Air Products is a sponsor of Air Products Town Square at Arts Quest in Bethlehem, PA
Source: Andy Borysowski / Shutterstock.com

Air Products & Chemicals (NYSE:APD) is a global leader in supplying industrial gases and has a vast infrastructure of over 100 hydrogen plants worldwide.

Things also look very positive for APD stock. It is currently in an ascending parallel channel, with some analysts predicting it could reach $350 by the end of 2023. The stock has shown growth from support of $281 since August 2023, trading above multiple daily moving averages.

APD also impresses when it comes to its fundamentals. A return on equity (ROE) of 15% indicates it generated $0.15 in profit for every $1 of shareholders’ equity. That’s in line with the sector. However, it’s unusual for hydrogen stocks to have a positive ROE since most of its resources are tied up in expanding growth. That helps make APD one of those hydrogen stocks to buy now.

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company
Source: nitpicker / Shutterstock.com

Linde (NYSE:LIN) is rapidly establishing itself as a major supplier of electrolyzers used for green hydrogen production. As the world’s largest industrial gas supplier, Linde generated $33 billion in revenue in 2022. The stock’s current price is $385.6 at the time of writing, with its estimated fair value at $352.21 by some analyst estimates.

However, these estimates were based purely on the present value of its future cash flows. On the stock’s technicals, it has been in an upward ascending channel since the middle of the year. It used this channel as support, with prices bouncing off them during this period.

Momentum is also firmly on the upside, giving it more of a bullish bias compared to some of the other stocks on this list. The trend is, therefore, expected to continue. Analysts expect to see another positive quarter from LIN stock, so we could see it enter into breakout territory. That helps make it one of those hydrogen stocks to buy now.

On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/09/betting-big-3-hydrogen-stocks-primed-for-a-breakout/.

©2024 InvestorPlace Media, LLC