Hydrogen stocks are a relatively new and upcoming investment option. With increasing awareness of the importance of hydrogen fuel cells in a green energy economy, more and more investors are looking into companies that specialize in this technology.
And while it’s still a nascent industry, there are a number of promising stocks for those interested in getting in on the ground floor of this growing sector.
Let’s dive right in!
What Is Hydrogen?
Hydrogen is the lightest element on the periodic table. It’s also the most abundant element in the universe, making up roughly 75% of all matter. Hydrogen is colorless, odorless, and tasteless. It’s also non-toxic, and hydrogen fuel cells emit zero water vapor emissions.
Is hydrogen a gas? With average temperature, hydrogen is a gas, yes. However, when it gets colder (−423 degrees Fahrenheit), it turns liquid.
What Are Hydrogen Fuel Cells?
Hydrogen fuel cells are devices that convert hydrogen into electricity. They use a chemical reaction between hydrogen and oxygen to create water vapor and heat. This process is highly efficient and can result in up to three times more energy than traditional gasoline engines.
Hydrogen fuel cells have the potential to revolutionize the transportation industry, as they emit no pollutants and are much more efficient than gasoline-powered vehicles.
Best Hydrogen Stocks to Watch in 2024
There are several hydrogen stocks today, but which one is the best? That’s a difficult question to answer, depending on your investment strategy and objectives.
However, we will list a few of the top stocks to watch in 2022.
3 Best Hydrogen Fuel Cell Stocks
1. DuPont de Nemours, Inc. (NYSE:DD)
- Market Cap: $38.7B
- Price per share: $75.62 (03/02/2022)
DuPont provides technology-based materials, solutions, and ingredients to various markets. These include electronics, transportation, health and wellness, construction, worker safety, and food. In 2021, the company generated $16,653 million in revenue.
Furthermore, DuPont de Nemours’ earnings are expected to rise by an incredible 68% in the following years. This will result in more cash flow, which will make the share value go up.
2. Linde plc (NYSE:LIN)
- Market Cap: $131.96B
- Price per share: $255.65 (03/02/2022)
Next on our list of hydrogen fuel cell stocks, we have Linde plc, an international chemical company founded in Germany and based in the UK. The company produces atmospheric gases like nitrogen, argon, oxygen, and other rare gases.
Potential shareholders should know that Franz Fehrenbach, the Independent Director of Linde plc, recently bought $114k worth of stock. He paid $303 per share, which increased the company’s holding by 9.0%.
3. Air Products and Chemicals, Inc. (NYSE:APD)
- Market Cap: $51.112B
- Price per share: $230.53 (03/02/2022)
If you’re looking for stable hydrogen stocks to buy in 2022, you should check out Air Products and Chemicals, Inc. The company planned to increase its dividends to $1.62 on the 9th of May. This would give shareholders a yield of 2.5%, which is a solid return for investors.
Air Products and Chemicals, Inc. supplies hydrogen and helium. It also has a strong position in current growth markets (semiconductor materials, natural gas liquefaction, refinery hydrogen, etc.).
Best Green Hydrogen Stocks
1. Bloom Energy Corp. (ticker: BE)
- Market Cap: $3.99B
- Price per share: $22.56 (03/02/2022)
Bloom Energy is a company that makes power generation systems for fuel cells. These systems can run on hydrogen, biogas, and natural gas. The company has been doing very well lately. In October 2021, their stock went up by 67%.
They have also been expanding their partnerships with other companies. Recently, they partnered with South Korea’s SK ecoplant. The two companies plan to work together to advance the commercialization of green hydrogen.
So, if you’re looking for top renewable energy stocks, be sure to keep an eye on this one.
2. Plug Power Inc. (PLUG)
- Market Cap: $14.322B
- Price per share: $24.85 (03/02/2022)
Plug Power Inc. was the first company to create a market for HFC technology. They’re also the largest electrolyzer company in the world.
Plug Power works with customers like Amazon, BMW, The Southern Company, Carrefour, and Walmart. In 2021, they made $502 million in revenue. Their goal for 2022 is to make between $900 and $925 million in revenue.
3. Next Hydrogen Solutions (NXHSF)
- Market Cap: $35.469M
- Price per share: $1.55 (03/02/2022)
Are you searching for cheap hydrogen energy stocks? Then look no further than Next Hydrogen Solutions! The company designs and manufactures hydrogen electrolyzers and is now expanding its technology to the transportation and industrial sectors.
They’re also working with Hyundai Motor Company and Kia Corporation to develop an alkaline water electrolysis system for generating hydrogen. This will not only help the environment but also lead to new, potential business opportunities.
Best Hydrogen Stocks Under $5
The best stocks to invest in don’t have to be expensive. In fact, there are quite a few affordable options out there, such as:
1. Westport Fuel Systems (WPRT)
- Market Cap: $269.28M
- Price per share: $1.56 (03/02/2022)
The most expensive stocks are not necessarily the most profitable, and Westport Fuel Systems Inc. is living proof of that. Namely, the company is doing much better than most of its industry peers.
While its share value shot down 61.90% over the past six months, its annual growth rate (160.00%) is still higher than the industry average (12.00%).
Analysts believe its earnings will grow by 360.00% in 2022, which is a massive increase.
2. SunHydrogen (OTCMKTS: HYSR)
- Market Cap: $169.23M
- Price per share: $0.040 (03/02/2022)
SunHydrogen is one of the cheapest hydrogen fuel stocks you could invest in. Better yet, the company has the potential to give you a good return on your investment.
It is currently trading at $0.040 and is expected to go up to $0.170 in the next five years. This would give you a revenue of +324.32% on your initial investment of $100.
3. ITM Power Plc (ITMPF)
- Market Cap: $2.59B
- Price per share: $4.22 (03/02/2022)
If you’re looking for hydrogen penny stocks with low volatility (an average of 12.02%), we recommend you check out ITM Power Plc.
ITM Power has recently opened the world’s largest electrolyzer factory in Sheffield, UK. The company works with well-known customers, such as Shell, Linde, and Siemens.
Its stock is expected to increase over the next five years (in 2027, it could be worth $12.95). So, if you invest $100 now, you could make $289.71 in 5 years.
Why You Should Invest in Hydrogen Fuel Cells
If you read fuel cell news, you’ve probably noticed that hydrogen fuel cells are growing in popularity as a power source since they operate as a battery but do not need to be recharged as long as fuel is supplied.
In 2021, the global market for hydrogen fuel cells was valued at $3.85 billion, and by the end of 2025, it is expected to grow at a CAGR of 43.8% to $16.50 billion.
Why are hydrogen fuel cell stocks becoming incredibly popular among investors? One of the reasons is the growing interest and investment in EVs.
Many famous automobile manufacturers, such as Honda Motor Co., Ltd., Toyota Motor Corporation, and Hyundai Motor Company, make electric cars that use hydrogen fuel cells.
In addition, many luxury automobile manufacturers like Land Rover, Vauxhall Motors, and BMW, plan to release hydrogen-powered cars in the next five years.
Conclusion
Hydrogen fuel cells are becoming increasingly popular thanks to clean energy. They emit no harmful pollutants, and they have a much longer lifespan than traditional combustion engines.
As hydrogen fuel cells become more mainstream, the demand for hydrogen power stocks is sure to increase.
We mentioned just a few of the HF stocks to watch in 2022. Keep an eye on the market, and be sure to invest early if you want to maximize your profits!
FAQs
Who are the leading hydrogen companies?
The leading companies that deal with hydrogen fuel are:
- DuPont de Nemours, Inc
- Linde plc
- Air Products and Chemicals, Inc.
- Bloom Energy Corp.
- Plug Power Inc.
- Next Hydrogen Solutions
- Westport Fuel Systems
- SunHydrogen
- ITM Power Plc
Can you buy shares in hydrogen?
Yes, you can. There are many different ways to invest in hydrogen technology. You can buy shares in major companies like Toyota or Shell or invest in smaller companies developing new hydrogen technology.
Stocks under $50 are a great way to invest in this industry as they have the potential to grow and offer a good return on investment.
What is the best hydrogen stock?
It’s hard to say as there are many stocks out there. It really depends on your investment goals — hence why we divided our top-rated companies into three groups to make your choice easier.
Overall, we believe DuPont de Nemours, Inc., Bloom Energy Corp., and Westport Fuel Systems show the most significant potential for investment.
Why are hydrogen stocks falling?
The stocks have been falling for a few days now, and many investors wonder why. There are a few possible explanations:
- Oil prices have been volatile recently, leading to some investors selling off their stocks in favor of more traditional energy investments.
- COVID-19 has caused a decline in futuristic stocks. Additionally, hydrogen isn’t as popular as oil and natural gas.
Therefore, it’s essential to watch hydrogen stocks and understand why they fluctuate up or down.
