As the S&P 500 and broader markets enter unfamiliar territory, the best hydrogen stocks to buy in October have emerged. You can snap up these stocks at relative bargains down from their highs near the middle and start of the year.
These companies have also recently reported positive developments in their fundamentals, making them undervalued. The best hydrogen stocks to buy on this list have bright futures ahead of them, so you don’t want to miss out.
Here are our top picks for October.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) specializes in hydrogen fuel cell technology. Despite facing a significant drop in stock value over the past year, the company has ambitious targets, aiming for substantial revenue growth in the coming years.
Like other hydrogen stocks on this list, the stock price of PLUG plunged due to fears of rising long-term Treasury bond yields. These companies, sensitive to interest rates, are impacted by surging bond yields, threatening their valuations and capital-raising abilities.
However, given its long-term growth outlook, the company’s stock appears to be attractively valued. With ambitious revenue targets and a focus on green hydrogen production, the company seems poised for a potential rebound and long-term growth. This helps make it one of the best hydrogen stocks to buy.
Air Products and Chemicals (APD)
Air Products and Chemicals (NYSE:APD) is a key player in the hydrogen economy and has aggressively invested in green hydrogen facilities. The company plans to build some of the world’s largest green hydrogen facilities.
APD has displayed strong Q3 2023 earnings, marking a 16% increase in adjusted earnings per share compared to the previous year. The company benefits from sustained volume improvement and increased hydrogen demand, particularly in the Americas. The company maintains a Buy rating, with a recommended buying range of around $250-$260 for long-term investors.
APD stock trades at 28.2 times earnings. This makes it relatively undervalued compared to previous years, and its fundamentals have improved since then, making it a stock to watch.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) specializes in solid oxide fuel cell technology for distributed electricity and hydrogen generation. Despite facing financial challenges, the company has a strong cash position and has made significant advancements in technology and product offerings.
Despite profitability and hydrogen production economic challenges, the company has shown consistent revenue and earnings growth, reduced operating losses, and expanded globally. Analysts are moderately bullish, and the company has the potential for significant upside.
BE stock trades at just 2.04 times its sales. It’s, therefore, undervalued compared to its historical averages and should be a name you keep on your watchlist.
On the date of publication, Matthew Farley did not have (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.
