Hydrogen stocks look like they are entering into a buy zone. Many of these companies are undervalued, and if the broader indices like the Nasdaq and S&P 500 receive an expected lift and rush of liquidity, then some of these hydrogen stocks could be poised for lift-off.

Before venturing further, it’s important to note that many of the hydrogen stocks on this list are speculative bull cases. Still, the risks inherent to these brands give them the potential to surge higher.

So if you are prepared to put some funds aside for potential moonshots, read on. Here are three hydrogen stocks that may have million-dollar potential.

Plug Power (PLUG)

Plug Power (NASDAQ:PLUG) is a well-known hydrogen fuel cell industry player. It also represents what I feel to be an extreme risk and reward scenario.

This is due to PLUG’s disappointing Q3 earnings results this year, which missed expectations for its top and bottom lines. Additionally, there have been concerns raised by analysts about its ability to remain a going concern, citing its rate of cash burn.

More recently, however, Plug Power expressed disappointment amid the release of tax rules concerning hydrogen power that were released this month. Specifically, the stringent requirements, such as needing electrolyzers to be powered by new renewable sources within the same grid area and matching power generation within the same hour, were criticized by Plug Power CEO Andy Marsh.

It seems that PLUG’s management had expected more favorable terms, but whether this will substantially or material impact the company’s recovery is yet to be seen.

I believe that PLUG could be a potential moonshot because its valuation may be too good to ignore. It trades at just 1.7 times forward sales, and despite the valid concerns raised about the company, Wall Street still holds a consensus “Buy” rating via 22 analysts. Additionally, they collectively predict an implied 106.19% upside.

While the risks are substantial, at just $4.52 per share at the time of writing, PLUG stock is as cheap as lottery tickets. This then makes it one of those hydrogen stocks to buy.

Ballard Power Systems (BLDP)

Ballard Power Systems (NASDAQ:BLDP) is a Canadian company that designs and manufactures proton exchange membrane fuel cell products.

Unlike PLUG, BLDP stock is in a substantially better financial position. Namely last quarter, it reported a 29% year-over-year increase in total revenue, reaching $27.6 million. This growth was primarily driven by a 67% increase in Heavy Duty Mobility revenue. It also expanded its gross margin by 12 basis points.

It should be noted that BLDP is still churning through its cash on its balance sheet. Over the past twelve months, it used up $156.52 million of it. Management also pointed to some encouraging signs that this cash burn rate is slowing down compared to last year’s figure. It also has $783 million worth of cash on its balance sheet, so it doesn’t seem to need a capital raise soon.

Therefore, what I like about BLDP is that unlike many of its peers, it’s showing signs of reaching breakeven profitability while retaining some very attractive valuation metrics. Specifically, it trades for 14.3 times sales, but on a forward basis this ratio is lower at just 9.69 times sales. Analysts, therefore, expect that these metrics will improve, thus making it a less risky option than some of the other hydrogen stocks in the same industry.

ITM Power (ITMPF)

ITM Power (OTCMKTS:ITMPF) specializes in manufacturing integrated hydrogen energy solutions. ITMPF stock is listed on the London Stock Exchange, which also offers some diversification benefits for U.S. investors.

This company reported solid 1H results. Namely, it reported revenues of £5.2m, surpassing the anticipated £2m by a wide margin. This is a notable improvement, as the company struggled in the past, but this has also made its share trade at a considerable discount.

More recently, however, ITMPF has also established some key relationships with oil majors, including Royal Dutch Shell. This came in the form of a major capacity reservation from Shell for 100MW of its PEM electrolyser stacks for the Refhyne 2 project in Germany, set for manufacturing between 2025 and 2026.

This development is a major step forward for ITMPF to commercialize its green hydrogen production. Given the pressing need to decarbonize the messy refinery operations of oil companies around the world, this could, in turn, be a major growth tailwind for the company and give it some moonshot potential.

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.