Green energy has become not only an important part of energy generation but also an important part of the economy and the stock market. Hydrogen plays a major role in green energy production. As a result, it has become increasingly easy for investors to earn money from hydrogen and other green energy stocks.
With the rise in the popularity of green energy, it has become easier to find investment opportunities, but more difficult to decide the best investment opportunity for you. In this article, we’re sharing the five best hydrogen stocks to invest in right now.
5 Best Hydrogen Stocks: An Overview
|Hydrogen Stock||Ticker||TL;DR (Too Long; Didn’t Read)|
|Plug Power Inc.||PLUG||One of the most well-known names in hydrogen production with massive growth expected in the next year|
|Bloom Energy||BE||A relatively new company that’s already surpassed many of its competitors|
|Air Products and Chemicals Inc.||APD||The largest company on our list, with more than8 decades in business and a market cap of more than $50 billion|
|Ballard Power Systems||BLPD||Expected to see exponential stock price growth over the next 12 months|
|Fusion Fuel Green PLC||HTOO||An up-and-coming company expected to see its stock price double in the next year|
Note: All data regarding stock prices and market capitalization is as of the close of trading on Wednesday, June 22, 2022.
1. Plug Power Inc. (PLUG)
- Current Price: $16.89
- 12-Month High: $46.50
- 12-Month Low: $12.70
- 1-Year Target: $34.52
- Market Capitalization: $10.14 billion
Plug Power is a fuel cell company that develops hydrogen energy solutions for businesses. The company was founded in 1997 with the goal of bringing an end-to-end green hydrogen ecosystem to its customers. During its lifetime, Plug Power has acquired a handful of other hydrogen companies. It has picked up a half dozen within the past five years alone.
Plug Power went public in October 1999. The company’s stock price has had its ups and downs over the years. After seeing an initial price jump after its IPO, the price fell dramatically and remained low for more than a decade. However, it's experienced a resurgence over the past two years and is expected to nearly double over the next 12 months.
2. Bloom Energy (BE)
- Current Price: $15.85
- 12-Month High: $37.01
- 12-Month Low: $11.47
- 1-Year Target: $24.76
- Market Capitalization: $3.16 billion
Bloom Energy is a hydrogen company that helps businesses and communities embrace green energy. The company builds and markets solid oxide energy solutions that produce energy onsite for Bloom’s customers.
Bloom Energy went public in July 2018. It experienced a drop in its stock price throughout 2019 and 2020. But after a surge in early 2021, the company has remained more consistent. The price is expected to increase by more than 35% over the next year.
3. Air Products and Chemicals Inc. (APD)
- Current Price: $241
- 12-Month High: $316.39
- 12-Month Low: $216.24
- 1-Year Target: $290.86
- Market Capitalization: $53.31 billion
Air Products and Chemicals is a green energy company that produces atmospheric industrial gases to customers in many industries, including food and beverage, manufacturing, electronics, and others. The company was founded in 1940, and today is one of the largest companies of its kind. Air Products is also a leader in hydrogen fueling systems.
Air Products and Chemicals went public in 1962 and has experienced dramatic growth since then. The company’s stock price has consistently risen over the past several decades and is expected to rise another 21% over the next year.
4. Ballard Power Systems (BLPD)
- Current Price: $6.47
- 12-Month High: $19.66
- 12-Month Low: $5.75
- 1-Year Target: $22.71
- Market Capitalization: $1.98 billion
Ballard Power Systems manufacturers and sells fuel cell power products, with a focus on those applications where hydrogen has a clear advantage. The company has a commitment to sustainability and has promised to be carbon neutral by 2030, partially with the help of its own products.
Ballard Power Systems was founded in 1986 and went public in 1993. After a price surge in the late 1990s and early 2000s, Ballard’s stock price fell and remained stagnant for more than a decade. It’s seen a resurgence since the start of 2020. While the stock price has had its ups and downs since then, it’s expected to more than triple over the next year.
5. Fusion Fuel Green PLC (HTOO)
- Current Price: $7
- 12-Month High: $15.99
- 12-Month Low: $4.48
- 1-Year Target: $20.50
- Market Capitalization: $94.7 million
Fusion Fuel Green PLC develops technology for the green hydrogen sector. The company creates an integrated solar-to-hydrogen solution for off-grid hydrogen production. Their mission is to provide the world with innovative green hydrogen solutions. The company is known for its production of a new electrolyzer design to allow for more affordable hydrogen production.
Fusion Fuel Green PLC was founded in 2018 and went public in 2020. Since then, the company’s stock has seen its ups and downs. After major price fluctuations throughout the past couple of years, the company is expected to see its stock price more than double in the next year.
Other Ways to Invest in Hydrogen Companies
If you aren’t comfortable investing directly in hydrogen companies, there are still plenty of ways you can profit from the growth of this industry.
Before we dive into other ways to invest in hydrogen, let’s discuss why someone might not want to invest directly in hydrogen stocks. Ultimately, stock picking is a risky endeavor. While the hydrogen industry will almost certainly grow in the future, investing in individual stocks requires someone to attempt to pick winners and losers in the industry.
Not only are many investors not comfortable with that, but it may also not be the most profitable strategy. The good news is there are ways to invest in hydrogen and benefit from the growth of the entire industry rather than one (or a few) individual companies.
One of the best ways to invest in hydrogen without buying hydrogen stocks directly is to invest in diversified investments like mutual funds and exchange-traded funds (ETFs). Both mutual funds and ETFs are diversified funds that include many underlying investments. For example, there are hydrogen ETFs that invest entirely in hydrogen companies. Others are broader green energy ETFs, which may include hydrogen companies, along with companies in other parts of the green energy industry.
Another way to invest in hydrogen companies without buying their stocks directly is to invest in an ESG portfolio from a robo-advisor. When you invest with a robo-advisor, a computer algorithm builds your asset allocation based on your financial goals and risk tolerance. Many of the top robo-advisors now offer ESG (short for environmental, social, and governance) portfolios, which invest in companies that meet certain socially-responsible investing criteria.
Should You Invest in Hydrogen?
Hydrogen stocks represent an excellent opportunity for investors. The renewable energy market overall reached $881.7 billion in 2020, and it’s expected to more than double by 2030, with an expected compound annual growth rate (CAGR) of 8.4% over the decade.
Hydrogen is one of the most prevalent forms of green energy, often used for transportation and electricity generation applications. Hydrogen energy plays a role in energy for cars, houses, portable power, and more.
As governments and companies aim to replace other energy sources with green energy hydrogen has been at the center of it. The Department of Energy has announced plans to reduce the cost of clean hydrogen by 80% over a decade as a part of its goal to reach net-zero carbon emissions by 2050.
So why does this make hydrogen an attractive investment opportunity? As hydrogen becomes more prevalent in energy production, the industry will see rapid growth. And a decrease in the cost of hydrogen production will only benefit investors.
The Bottom Line
If you’re considering investing in hydrogen stocks, it can feel overwhelming to wade through all of your options and choose the best company. This list of the top five hydrogen stocks should give you a starting point on your investing journey.
The hydrogen industry — like the rest of the green energy industry — has seen massive growth in recent years. Investors can expect this growth to continue as renewable energy sources like hydrogen become more important in energy production.
And if you aren’t comfortable buying individual hydrogen stocks, there are still plenty of ways for you to profit from the growth of the industry, including hydrogen and green energy ETFs and mutual funds, as well as robo-advisor ESG portfolios.
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