SPECIAL REPORT The Top 7 Stocks for 2024

3 Hydrogen Stocks to Power Up Your Portfolio


  • Hydrogen stocks remain full of potential despite recent bumps in the road.
  • Air Products and Chemicals (APD): The company offers a slow and steady approach for exposure to hydrogen investments.
  • Linde (LIN): Linde is another slow and steady investment for smart investors.
  • Bloom Energy (BE): Bloom Energy is riskier but has been doing well.
Hydrogen stocks - 3 Hydrogen Stocks to Power Up Your Portfolio

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Investing in hydrogen stocks just became a little bit more difficult following the crash of Plug Power (NASDAQ:PLUG). The company warned about supply issues amid inflationary pressures and analysts estimate that it needs $750 million in additional funding. That caused its shares to plummet by more than 40%. 

That said, the issues look to be contained to the company alone. The hydrogen opportunity continues to be strong. Recent headlines suggest that hydrogen could be the green fuel for both sides of the political aisle. Let’s look at some of the stronger names in the space worth considering.

Air Products and Chemicals (APD)

Air Products truck on motorway. APD stock.
Source: Bjoern Wylezich / Shutterstock

Air Products and Chemicals (NYSE:APD) is a large, established and stable firm and stock. Therefore, I think it’s a great option to explore at this point in light of Plug Power’s issues.

Investors in APD stock sacrifice the potential for rapid gains that stocks like Plug Power can provide. In return they receive stability with the potential to capitalize on the continued transition toward greener energy, namely hydrogen.

The corporation has not reduced its dividend since 1983. It’s extremely stable and very well established. That said, investors should also realize that the firm is highly diversified. The company operates across many Industries and simply can’t explode upward in price due to hydrogen alone.

However, hydrogen remains a big part of the company’s business overall. This year hydrogen has contributed more than $3 billion to the company’s top-line results. Air Products and Chemicals operates the world’s largest blue hydrogen project in Louisiana as well as other large blue hydrogen projects in western Canada and hydrogen projects across the globe. 

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company
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Linde (NASDAQ:LIN) is a lot like Air Products and Chemicals stock. Both are strong investments for those who want to avoid high risk while gaining exposure to the hydrogen opportunity.

The British company is the largest industrial gas firm in the world and is investing heavily in hydrogen. Lind anticipates investing up to $9 billion in clean energy production in the next few years.

Again, investors aren’t going to get exposure to rapid returns from hydrogen through LIN stock. That’s just not what this investment is about. Instead, Linde will provide investors with steady, predictable growth and a dividend that hasn’t been reduced for decades.

Bloom Energy (BE)

BE stock Bloom Energy logo on a building
Source: Sundry Photography / Shutterstock

For those still willing to undertake risk, Bloom Energy (NYSE:BE) stock offers more upside with the risk of youth.

It’s important to understand just how Bloom Energy uses hydrogen. That requires understanding how solid oxide electrolyzers and solid oxide fuel cells work.

Electrolyzers are devices that separate hydrogen molecules in water. The solid oxide electrolyzers that Bloom Energy uses are more efficient than other types of electrolyzers. This should allow Bloom Energy to operate more efficiently than its competition. 

That efficiently produced hydrogen fuels Bloom Energy’s solid oxide fuel cells that produce electricity that the company then sells to utility companies.

Bloom Energy is a younger company than the other two firms and has more potential upside. The analysts covering Bloom Energy anticipate that its shares have the potential to more than double over the next year.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-hydrogen-stocks-to-power-up-your-portfolio/.

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