There have been concerns that if Trump takes the White House in November, he could repeal the Inflation Reduction Act (IRA). If that were to happen, green energy stocks, including hydrogen stocks, could easily drop.
However, that’s not likely to happen.
In fact, as noted by MSN.com, “Morgan Stanley sees domestic manufacturing, nuclear power, and wind and solar tax credits enjoying bipartisan support, reducing the risk of repeal regardless of administration composition, with no change to the IRA or the pace of clean energy development under a unified Democratic government or a divided government with a Democratic president.”
In short, the fear is a bit overblown. And from the looks of it, hydrogen stocks don’t appear bothered by a second term for Donald Trump.
Also, while an aggravated hydrogen industry is still waiting for the final word on the 45V tax credits, some CEOs, including Plug Power’s (NASDAQ:PLUG) Andy Marsh, are confident the rules will be relaxed.
That being said, here are some of the top hydrogen stocks you may want to consider.
Bloom Energy (BE)
Recent weakness in Bloom Energy (NYSE:BE) is a buying opportunity.
For one, it just caught support just below $14, and is starting to pivot higher. Last trading around $14.50, I’d like to see it initially retest $18 a share.
Two, as I noted on July 18, “The company will deploy its fuel cells to generate on-site power for a high-performance artificial intelligence data center with CoreWeave. Analysts at RBC Capital also reiterated an Outperform rating on the stock.”
With data center energy demand only set to spike, Bloom Energy will benefit from the AI boom with CoreWeave.
Plus, as noted by the company, “This win underscores Bloom’s ability to meet the rising energy demands of the rapidly growing AI sector. This validation from Core Weave, a leader in AI, is a testament to our leading-edge technology and its importance to AI,” said Bloom’s Chief Commercial Officer Aman Joshi.
Linde (LIN)
Linde (NASDAQ:LIN) is another powerhouse hydrogen stock to buy on weakness.
After testing a high of about $480, rebounding shares of LIN are now back around $444. From here, I’d like to see it retest $480 near-term. Even better, every time LIN pulls back to its 50-day moving average, I’d buy it. If you pull up a two-year chart of LIN, you can see it’s been hugging its 50-day and 100-day moving averages since October 2022.
Helping, as I also noted on July 18, “Analysts at Citi just boosted their price target on Linde to $480 and Mizuho raised its price target on LIN to $512, with a Buy rating.”
Better, while we wait for Linde to push higher, we can at least collect its yield of 1.24%. Its last dividend payment of $1.39 was paid out on June 18. We do expect to see new dividend news before the end of the month.
Direxion Hydrogen ETF (HJEN)
Or, if you’d rather diversify with 30 hydrogen-related stocks at a lower cost, there’s the Direxion Hydrogen ETF (NYSEARCA:HJEN).
While its chart is a mess, give it time. With the AI boom fueling the need for energy, as we’re seeing with Bloom Energy, and a potential rework of 45V tax credits, the ETF could push higher.
With an expense ratio of 0.45%, the ETF offers exposure stocks with a focus on hydrogen production and generation, storage and supply, fuel cells and batteries, in addition to systems, solutions, membranes and catalysts.
At the moment, some of its top holdings include Bloom Energy, Air Liquide (OTCMKTS:AIQUY), Ballard Power (NASDAQ:BLDP), Linde and Plug Power.
On the date of publication, Ian Cooper did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
