3 Best Hydrogen Stocks to Buy Now

  • Rising geopolitical pressures are putting a favorable spotlight on the best hydrogen stocks to buy now.
  • Shell (SHEL): Though a hydrocarbon powerhouse, Shell’s initiative to build Europe’s largest renewable hydrogen plant presents an intriguing opportunity.
  • Bloom Energy (BE): Specializing in solid-oxide fuel cells, Bloom Energy could lay the groundwork for tomorrow’s zero-carbon economy.
  • Plug Power (PLUG): A high-risk, high-reward player in the green hydrogen department, Plug Power may present smart speculation.
best hydrogen stocks - 3 Best Hydrogen Stocks to Buy Now

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While betting on the future of energy is always a risky proposition, those with some extra pocket change may want to consider the best hydrogen stocks to buy now. According to the International Energy Agency, hydrogen – which is the most abundant element in the universe – is also incredibly versatile. Indeed, it can be transformed to electricity and methane, driving myriad applications.

From Russia’s invasion of Ukraine to dramatically escalating tensions between the U.S. and China over Taiwan, energy resources and supply chains have become one of the most critical talking points. For instance, Europe’s dependence on Russia energy inflows hampers its ability to pivot quickly to clean energy. This dynamic alone bolsters the case for the best hydrogen stocks to buy now.

The bottom line for many companies is that the days of exclusive hydrocarbon hegemony may be ending. Therefore, investors ought to consider the best hydrogen stocks to buy now.

Best Hydrogen Stocks: Shell (SHEL)

logo on a gas station in Iceland.

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While most people know Shell (NYSE:SHEL) as an oil and natural gas giant, the company not too long ago generated headlines for its hydrogen-based initiative. Specifically, Shell announced in July of this year that it will start building Europe’s largest renewable hydrogen plant. According to its press release, the “renewable power for the electrolyser will come from the offshore wind farm Hollandse Kust.” Shell partially owns the aforementioned wind farm.

To be fair, SHEL is hardly what you call a pure-play investment in the best hydrogen stocks to buy now. At the same time, the developmental process to integrate hydrogen into broader energy infrastructures at scale will take time. During the interim, stakeholders can benefit from the company’s top-shelf business, including its robust forward yield of 3.9%.

Of course, Shell won’t appeal to those who are seeking a full pivot to renewables. However, infrastructural realities may dictate that hydrocarbon energy platforms will be with us for decades. Therefore, SHEL provides balance among the best hydrogen stocks to buy.

Bloom Energy (BE)

BE stock Bloom Energy logo on a building

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One of the high-flying names in the alternative energy sector, Bloom Energy (NYSE:BE) specializes in solid-oxide fuel cells or SOFC. As the company mentions on its website, Bloom’s SOFCs have been deployed in hundreds of applications across healthcare, data centers, critical manufacturing, retailers and more. Further, its fuel-cell technologies generate combustion-free, emissions-free and carbon-free electricity from hydrogen.

Over the trailing five days, BE stock gained over 20%. Moreover, in the trailing month, shares have delivered a blistering return of 77% to stakeholders. Raymond James analyst Pavel Molchanov raised the price target of BE to $29 from $23. Molchanov also maintained a “strong buy” rating on the shares.

Other analysts have also expressed confidence in Bloom Energy. In particular, higher-than-expected fuel cell acceptances pushed revenue in the second quarter to $243.2 million. This was up 6.5% year-over-year but slightly missed the consensus sales target.

Still, it appears investors are keeping the bigger picture in mind, potentially making BE one of the best hydrogen stocks to buy now.

Best Hydrogen Stocks: Plug Power (PLUG)

Plug Power logo on computer screen. PLUG stock.

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Another high-flying name among the best hydrogen stocks to buy now, Plug Power (NASDAQ:PLUG) may be ideal for those who want to maximize their reward potential at the risk of a substantial downturn. Over the past five days, PLUG has gained 3% while in the trailing month, shares have soared 67%.

In June of this year, the Wall Street Journal featured Plug Power and its green hydrogen ambitions. At the moment, the energy industry mostly produces gray hydrogen. This is natural gas-derived hydrogen, which of course is the least renewable form of the element. Plug admits that it’s been wondering in the “wilderness” but that it’s ready to come out with truly effective solutions.

Over the last several months, Plug Power has been inking deals, most notably with Walmart (NYSE:WMT). Although the partnership lends significant credibility to the underlying green hydrogen business, PLUG has work to do.

Still, this could be a signal for speculators to dive in before shares really take off.

On the date of publication, Josh Enomoto 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.


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