The 3 Best Hydrogen Stocks to Buy in May 2024


  • Here are some of the top hydrogen stocks to buy on dips.
  • Linde (LIN): With a good chunk of negativity priced in, I’d use weakness as an opportunity.
  • Air Products and Chemicals (APD): While earnings and guidance were mixed, it appears most of the negativity has been priced into the rebounding stock.
  • Global X Hydrogen ETF (HYDR): Diversify with top hydrogen stocks at a low cost by buying an ETF.
Best Hydrogen Stocks to Buy - The 3 Best Hydrogen Stocks to Buy in May 2024

Source: DesignRage /

While the hydrogen industry waits to see what’s happening with the restrictive Section 45V tax credits, we can use current industry weakness as an opportunity with some of the best hydrogen stocks to buy.

As it stands now, current tax guidelines, aimed at making it cheaper to produce hydrogen, are far too strict.

For example, according to the American Clean Power Association, the current rule “fails to acknowledge the market realities of new technology deployment. Specifically, imposing an hourly matching provision too early for first-wave green hydrogen projects will discourage a significant majority of clean power companies from investing in green hydrogen manufacturing and facilities. ACP is encouraged to see that the Treasury Department has specifically requested comment on the adequacy of the transition schedule. The proposed timeline is a fundamental obstacle to the commercialization of green hydrogen in the U.S.”

Poor earnings, sky-high interest rates and subsidy delays have also been weighing the industry down. However, with the weakness, there is opportunity in beaten-down names.

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company
Source: nitpicker /

Over the last few days, shares of Linde (NASDAQ:LIN) gapped from about $440 to $415. However, after catching support dating back to February, and becoming over-extended on RSI, MACD, and Williams’ %R, LIN is attempting to pivot higher. From its last traded price of around $423, I’d like to see it initially refill its bearish gap at around $440.

Granted, the stock fell on mixed first quarter earnings, but there’s a lot to like here. For one, its earnings per share (EPS) of $3.75 came in better than estimates for $3.42. Unfortunately, its operating cash flow of $1.95 billion did miss expectations for $2.46 billion. Moving forward, the company also expects to see second quarter EPS within a range of $3.70 to $3.80, which is 1% below expectations. 

With a good chunk of negativity priced in, I’d use weakness as an opportunity. Helping, the company just declared a quarterly dividend of $1.39 per share, which is payable on Jun. 18 to shareholders of record, as of Jun. 4. Linde is also one of the best hydrogen stocks to buy.

Air Products and Chemicals (APD)

Air Products (APD) logo on the Arts Quest building, Air Products is a sponsor of Air Products Town Square at Arts Quest in Bethlehem, PA
Source: Andy Borysowski /

The last time I mentioned Air Products and Chemicals (NYSE:APD), I said, “I’d still like to see APD refill its bearish gap around $260 initially. From there, it could easily test $272 as the hydrogen story gains momentum. Plus, as we wait for the stock to recover more lost ground, we can collect its dividend of $1.77, which is payable on May 13 to shareholders as of April 1.”

That was on Mar. 18, as APD traded at about $230. And while it hasn’t refilled that gap just yet, it did ramp up to $245.87. Plus, as we continue to wait for it to refill that bearish gap at around $260, we can collect its current yield of 2.88%.

In addition, while earnings and guidance were mixed, it appears most of the negativity has been priced into the rebounding stock. In its second quarter, the company posted EPS of $2.85, which beat by 15 cents. Revenues of $2.93 billion — down 8.4% year over year — did miss by $130 million. Moving forward, full-year fiscal 2024 adjusted EPS of $12.20 to $12.50 is below estimates of $12.31.  Also, third quarter, EPS of $3 to $3.05 is also below estimates for $3.30.

Again, though, all of the negativity appears to have been priced in.

Global X Hydrogen ETF (HYDR)

An image of a hydrogen fueling station with a truck parked in the background. hydrogen stocks
Source: Shutterstock

Even the oversold exchange-traded fund (ETF), the Global X Hydrogen ETF (NASDAQ:HYDR), is pivoting from oversold conditions. In fact, after catching support at $4.85, it’s now up to $5.53. From here, I’d like to see it retest $5.85 and eventually $6.40.

With an expense ratio of 0.5%, the ETF invests in some of thebest hydrogen stocks to buy that are involved with hydrogen production, and the development and manufacturing of hydrogen fuel cells. Some of its top holdings include Bloom Energy (NYSE:BE), Plug Power (NASDAQ:PLUGBallard Power (NASDAQ:BLDP), ITM Power (OTCMKTS:ITMPF) and Ceres Power (OTCMKTS:CPWHF).

While its chart is nothing to write home about, give it time. With a good deal of excitement in hydrogen, HYDR could easily bounce higher again.

What’s nice about an ETF like HYDR is that it offers solid exposure to multiple hydrogen names at a low cost. For example, if I wanted to buy 100 shares of HYDR, it would cost me about $552. If I were to buy just one of the ETF’s holdings such as Linde, for example, it would cost me closer to $42,360. I’d rather pay $552 for greater exposure.

On the date of publication, Ian Cooper did not hold (directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Ian Cooper, a contributor to, has been analyzing stocks and options for web-based advisories since 1999.

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