With the world attempting to go green, the Biden Administration just announced a $7 billion investment in hydrogen hubs in the U.S. Deployment of low-cost, clean hydrogen is crucial to meeting Biden’s climate goals. All of which should be a powerful catalyst for related hydrogen stocks.
Plus, as I’ve noted, Goldman Sachs and Bank of America believe hydrogen could be an $11 trillion market. We also know the market could be worth $410.6 billion by 2030 from $242.7 billion today. So, there is plenty of potential for those with patience.
Here are some of the top hydrogen stocks you may want to buy, forget about, and check back on in a couple of years.
Chart Industries (GTLS)
After dropping from about $170 to $114, Chart Industries (NYSE:GTLS) is just starting to pivot higher. Last trading at $132.65, I’d like to see it initially refill its bearish gap around $150. Helping, the company is one of the top leaders in liquid hydrogen storage. Even better, the company said its total addressable hydrogen market doubled from about 512 potential customers to 1,170, as noted in its June 2023 investor deck.
Granted, recent earnings weren’t so hot. But given its position in the hydrogen industry, weakness is becoming opportunity. In its most recent quarter, GLTS miss adjusted earnings and revenues, and even guided full-year revenue to below analyst forecasts. EPS of $1.28 missed by 23 cents. Revenue of $897.9 million, which was up about 10% year over year, missed expectations by $132.1 million. However, most of the negativity appears to be priced in.
Air Products and Chemicals (APD)
There’s also Air Products and Chemicals (NYSE:APD), an oversold $60 billion heavyweight to buy and hold long term. Better, after gapping from about $295 to $200, the APD stock is showing strong signs of life again, last trading at $270.15.
Near term, I’d like to see it initially refill its bearish gap from $295. As we wait for the recovery, we can collect its yield of 2.59%. It just recently announced a $1.75 dividend, payable Feb. 12 to shareholders of record on Jan. 2.
With APD, I’d also use recent weakness as an opportunity, as an insider recently did. On Nov. 8, CEO Seifi Ghasemi bought 10,000 shares at $252.34. Days later, he bought another 11,000 shares for an overall spend of about $5.4 million. All to take advantage of the recent earnings dip.
With plenty of growth in store, APD is a top hydrogen stocks for the long haul.
Direxion Hydrogen ETF (HJEN)
Or, if you want to safely diversity with hydrogen stocks at a low cost, there’s the Direxion Hydrogen ETF (NYSEARCA:HJEN).
With an expense ratio of 0.45%, the ETF invests in companies that benefit from hydrogen production and generation, fuel cells and batteries, and storage and supply. Its chart is ugly at the moment, having fallen from about $14.50 to $12.15. But don’t write it off. With patience, I’d like to see the ETF initially test $15.
Some of its top holdings include Air Liquide (OTCMKTS:AIQUY), Shell PLC (NYSE:SHEL), Bloom Energy (NYSE:BE), Plug Power (NASDAQ:PLUG), BP (NYSE:BP), and Air Products and Chemicals.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
