Hydrogen hopefuls, listen up! FuelCell Energy (NASDAQ:FCEL), the Connecticut-headquartered hydrogen-production company, is absurdly underappreciated on Wall Street. So, if you’re a believer in the snapback effect, now’s the time to buy FuelCell Energy stock.

Undervalued businesses like FuelCell Energy can experience a “snapback effect” and become market darlings. And, you want to be in the trade before this happens, not after. So, let’s take stock of the bull case as FuelCell Energy is a clean-energy startup to consider right now.

FuelCell Energy’s Power-Packed Partnerships

FuelCell Energy isn’t averse to the idea of teaming up to tackle important clean-energy projects. In a notable example of this, FuelCell Energy announced a partnership with Exxon Mobil (NYSE:XOM) last year to establish a carbon-capture technology pilot plant.

Fast-forward to mid-2024, and FuelCell Energy continues to forge worthwhile partnerships. In the company’s home state of Connecticut, FuelCell Energy agreed to provide the University of Connecticut’s Innovation Partnership Building with “solid oxide fuel cell technology.”

Clearly, the University of Connecticut is serious about achieving its sustainability goals. Investors should be on the alert for more possible team-ups as FuelCell Energy could certainly help other higher-education entities reach their clean-energy objectives.

Heading over to Korea now, Gyeonggi Green Energy agreed to buy “42 1.4-megawatt upgraded carbonate fuel cell modules” from FuelCell Energy. The objective is to “replace existing fuel cell modules at the Hwaseong Baran Industrial Complex fuel cell power platform.”

The news release claims that this is the “world’s largest fuel cell power platform.” So, investors shouldn’t underestimate the scale and significance of this arrangement.

By all indications, FuelCell Energy is on a quest to be a clean-energy market mover in Korea. Certainly, the company’s deal with Gyeonggi Green Energy is a big step in the right direction.

FuelCell Energy Survived With Cash in Hand

Now you know about FuelCell Energy’s power-packed partnerships. Yet, you may be baffled by the beatdown of FuelCell Energy stock in 2024.

Think about the context in which this share-price drawdown occurred. Interest rates have been elevated for quite a while. Furthermore, the high-interest-rate environment prompted investors to pile into megacap stocks and shy away from smaller, more speculative startups.

The tide may be about to turn, though. The snapback effect could happen very soon as encouraging inflation trends signal possible near-term interest-rate cuts.

If stock traders went too far in punishing FuelCell Energy, they might finally come to appreciate the company’s true value.

Again, I encourage you to review FuelCell Energy’s value-added partnerships. Then, take a look at the company’s capital position.

As of April 30, FuelCell Energy had cash and cash equivalents, restricted cash and cash equivalents, and short-term investments totaling $313.2 million.

Thus, FuelCell Energy might be considered a speculative startup, but the company isn’t in danger of going broke. Yet, the market treated FuelCell Energy as if the company were about to go bankrupt.

This is why FuelCell Energy stock presents such a rare and remarkable opportunity.

FuelCell Energy Stock Is Senselessly Cheap

FuelCell Energy has notable collaborations underway, both in the U.S. and abroad. Plus, the company survived a prolonged period of high interest rates and maintain a sizable capital position.

That’s impressive, but the market isn’t impressed with FuelCell Energy at the moment. Therefore, today’s a great day to take a small share position in FuelCell Energy stock.

While it’s below $1, consider it a gift – and anywhere near 50 cents, the stock is simply too cheap to resist.

On the date of publication, David Moadel 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.