SPECIAL REPORT The Top 7 Stocks for 2024

The Hydrogen Economy: 3 Stocks Poised for Success in Clean Energy

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  • The hydrogen market has potential to supply the world the world with sustainable and efficient energy
  • Bloom Energy (BE): Innovative company with strong revenue growth and a strong balance sheet
  • Plug Power (PLUG): Undervalued industry leader with strong technical outlook
  • Linde (LIN): Recent impressive partnerships and strong finances.

 

clean energy stocks - The Hydrogen Economy: 3 Stocks Poised for Success in Clean Energy

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As the worldwide effort towards cleaner energy persists, hydrogen companies and clean energy stocks appear increasingly potent. A 9.2% CAGR is predicted for the hydrogen industry until 2030, which could pick up in the following years. Hydrogen’s high energy per mass means that learning to harness it efficiently and sustainably could be highly beneficial. Despite its primarily industrial uses now, by 2050 only 15% of its uses are expected to be industrial. Below are some of the best clean energy stocks in this highly potent market.

Bloom Energy (BE)

BE stock Bloom Energy logo on a building
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Founded in 2001 and headquartered in San Jose, California, Bloom Energy (NYSE:BE) is a renowned force in the hydrogen industry due to its innovative use of solid oxide fuel cell technology. The company has pioneered a pathway toward cleaner and more sustainable electricity generation using hydrogen fuel cells. Despite financial hurdles, Bloom Energy has successfully installed over 700 systems worldwide, underscoring its dedication to advancing hydrogen-based technologies.

Bloom Energy is a promising investment due to its robust financials and growth potential. With a Price-to-Earnings (P/E) ratio below the industry average, the stock appears undervalued. The company’s revenue growth rate of 28% and strong balance sheet underscore its financial health. Bloom Energy’s focus on sustainable energy solutions aligns with the global shift toward clean energy sources, positioning it favorably in a growing market. Moreover, its partnerships and collaborations enhance market penetration, promising further expansion.

Bloom Energy’s stock currently trades near its 50-day MA (moving average), indicating short-term stability. The RSI (Relative Strength Index) stands at 35, approaching oversold levels, suggesting a possible buying opportunity. Furthermore, the stock price is 20% below its recent high, indicating potential for a rebound. The MACD (Moving Average Convergence Divergence) shows a bullish crossover, hinting at positive momentum. Additionally, the stock’s trading volume has been increasing, signifying growing investor interest. These technical indicators collectively suggest a favorable entry point for investors seeking short-term gains in Bloom Energy’s stock.

Plug Power (PLUG)

Person holding mobile phone with logo of American hydrogen fuel cell company Plug Power Inc. (PLUIG) on screen in front of webpage. Focus on phone display. Unmodified photo.
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Plug Power (NASDAQ: PLUG), headquartered in Latham, New York, has been a prominent hydrogen player since its establishment in 1997. Legal challenges following its IPO aside, the company is developing hydrogen fuel cell systems for material handling equipment and EVs. Plug Power’s GenDrive system, developed with Ballard Power Systems (NASDAQ:BLDP), offers rapid recharge times and consistent power output.

Plug Power appears to be ideal for energy-solutions-minded, long-term investors in the growing EV market. With a strategic focus on green hydrogen production and a network of partnerships with major companies like Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN) and Airbus (OTCMKTS:EADSY), Plug Power is positioning itself as a key player in the transition to clean energy solutions.

Plug Power’s market capitalization of $3.75 billion and innovative green hydrogen technology suggests that the company has significant growth potential, especially given its aim to build an end-to-end green hydrogen ecosystem. Additionally, analysts gave PLUG a “moderate buy” rating with a $13.53 price target and 128.16% upside potential. The recent price decline to $6.23 presents a potential buying opportunity while the stock is undervalued, given the stock’s 52-week range of $5.58 to $18.88.

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company
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Linde (NYSE:LIN) is another compelling investment opportunity, with multiple factors indicating that it is undervalued and poised for growth. The company’s lead in the industrial gasses market, particularly in the hydrogen sector, is a significant advantage. Linde is developing technologies to compress and refuel hydrogen, as well as reduce carbon emissions through carbon capture and storage. This focus on clean energy technologies positions Linde at the forefront of the transition towards more sustainable energy sources.

Linde’s strategic investments also underline its potential for future growth. The $1.8 billion commitment to power an ammonia plant in Texas, capturing and storing over 1.7 million metric tons of carbon dioxide annually, is notable. Linde’s partnership with ExxonMobil (NYSE:XOM) for transporting and storing captured carbon dioxide reflects a dedication to addressing environmental concerns. These investments not only contribute to a more sustainable energy ecosystem but also promise future revenue streams for the company.

Furthermore, Wall Street analysts‘ “Strong Buy” consensus on LIN stock underscores the market’s confidence in the company. Linde’s projected YoY growth in adjusted EPS, along with its collaboration to build a significant hydrogen production facility in Arizona, is a testament to its commitment to expanding its market presence. The company’s 500 global hydrogen production plants further reinforce Linde’s status as a key player in the sector. Overall, Linde’s comprehensive approach to clean energy, strategic investments and strong market position make it an attractive, undervalued option in clean energy stocks.

On the date of publication, Tomas Levani 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

Tomas is a self-taught investor with a passion for ESG investing. He has managed the portfolio of a small investment fund, interned at a Fortune 500 investment company, and started his own research firm. Through his freelance writing, he now aims to find favorable investments in companies with a mission of bettering the world.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/the-hydrogen-economy-3-stocks-poised-for-success-in-clean-energy/.

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