Best Hydrogen Fuel-Cell Stocks

July 24, 2021

A quick but comprehensive list of the 7 best hydrogen fuel cell stocks of 2021

Best Hydrogen Fuel-Cell Stocks

It is well known that governments and businesses all over the world are making a push towards the more Eco-friendly. Everything from vehicles to appliances must be energy efficient and make as little carbon emissions as possible if they are to be deemed acceptable by today's standards.

But there's no denying that even if electric cars and energy-efficient homes become the norm, this will make little difference if the electricity or energy in question still comes for things like fossil fuels or gas. In that regard, the true push towards greener living will mean entire nations finding sustainable alternatives to sources of power.

One such candidate that is poised to replace other power sources is hydrogen fuel cells. Hydrogen is an abundantly available element that already is being used to power vehicles in the US, Europe, and Asia. It comes on top of many analysts' list of the most viable options for alternative fuel and will most certainly be used more and more in the coming years.

The Best Hydrogen Fuel-Cell Stocks

If you're an investor looking to capitalize on the rapidly growing market of hydrogen fuel cells, then an investment in its stocks as soon as possible will be essential. But which hydrogen fuel companies are poised to benefit the most from this transition? Well, below are the 7 best hydrogen fuel stocks for you to invest in this year:

1. Ballard Power Systems (BLDP)

Market Value: $4.70 Billion

Dynamic Stock Chart for TICKER BLDP

Founded in 1979, the Canada-based company is a leader in the energy market. With an extensive industry of providing power to countless homes, it comes as no shock that the company is now looking to adapt to the times and transition to more renewable sources of energy.

An indicator of this is its announcement in January of this year that its newly developed hydrogen fuel technology runs entirely on hydrogen gas and has powered an equivalent of 18.5 million miles worth of commercial and industrial vehicle use around the world.

Stock prices have rallied to triple the value and estimates predict the value to continue to increase by as much as 60% in the next 12 months. There are also plans to equip several Holland buses with their hydrogen fuel cell which might mean a gateway to the greater European markets.

2. Bloom Energy (BE)

Market Value: $3.70 Billion

Dynamic Stock Chart for TICKER BE

Founded in 2001, the California-based company is a leader in green energy providing and has only recently begun a shift towards hydrogen fuel which it sees as the future of renewable energy. Stock prices rose by 350% since it began selling its hydrogen electrolyzers, and profits and revenue are all pointing up.

The company is also pioneering the market for renewable generators with the introduction of the solid oxide fuel generator (SOFC) through the Bloom Energy Server.

Other noteworthy news is a $1 billion worth deal with SK Engineering & Construction in South Korea to provide them with hydrogen fuel cells. This comes as the country seeks to run completely on renewable energy by 2022. This along with other expansion plans means that analysts predict the stock prices of Bloom Energy to increase by a further 50% over the next twelve months.

3. Cummins Inc (CMI)

Market Value: $34.71 Billion

Dynamic Stock Chart for TICKER CMI

Definitely one of the larger players in the green energy industry, Cummins Inc. was founded in 1919 and is based in Indiana, USA. The storied company is a known fuel provider with stakes in several different energy fields, including diesel, natural gas, electric, and hybrid powertrains.

Their recent foray into the hydrogen fuel market with the purchase of Hydrogenics, a leader in hydrogen fuel cell production, has got investors excited. Since the company already has the resources and customer base, its endeavors in the hydrogen fuel industry are expected to turn out a profit almost instantly.

Stocks of the company are up by 23% year-to-date and it has been consistently outperforming forecasts for the past 3 quarters. Stocks have also grown 55% since the purchase of Hydrogenics in 2019. As such, it remains to be seen what Cummins Inc intends to do with its newly acquired hydrogen fuel division and if expansion plans are on the way.

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4. ITM Power PLC (ITM)

Market Value: $2.23 Billion

Dynamic Stock Chart for TICKER ITM

A newcomer of some sorts to the industry, ITM Power PLC is blazing a trail with its Proton Exchange Membrane Technology and it's being the first UK hydrogen fuel company to go public. The company mainly produces hydrogen power solutions for utilities, enterprises, and municipalities. It has 30 refueling stations across the UK and plans to expand this to about 100.

Rebounding from the effects of the pandemic, stocks have steadily grown by 550% and present investors with a viable option for either short- or long-term investment. It also recently signed an agreement with Linde to build the world's tallest hydrogen electrolyzer -- signifying to investors its ambition to become a definite player in its market.

Analysts are optimistic about the stocks of the company and state that investors can expect the stocks to come close to doubling their price in the next 12 months.

5. Air Products and Chemicals (APD)

Market Value: $64.25 Billion

Dynamic Stock Chart for TICKER APD

This 80-year old company holds the distinction of being one of the pioneers of hydrogen fuels production and is definitely one of the larger players on this list. Based in Pennsylvania, USA, the company provides hydrogen fuel globally and has recently reported a $5 billion deal to construct the world's largest hydrogen project in Saudi Arabia.

This endeavor seeks to supply 650 tons of hydrogen fuel a day which will be used for greener transportation globally. Work is set to begin as soon as the pandemic restrictions make construction possible. This project alone is expected to bring a large positive impact on the company's stocks which investors would be wise to gear up for.

Seen more like the better option for one looking for long-term investments in hydrogen fuel cells, the company is projected to grow by 8-10% over the next 12 months.

6. Defiance Hydrogen ETF (HDRO)

Market Value: $38.200 Million (In Total Net Assets)

Dynamic Stock Chart for TICKER HDRO

A nice alternative to committing to a single hydrogen fuel cell stock, Defiance Hydrogen ETF provides investors with the ability to invest in multiple hydrogen stocks in one. This somewhat limits your exposure risks to the ups and downs of individual companies but also has the trade-off of offering lesser returns.

That being said, the ETF has stakes in various companies which include Plug Power (PLUG), FuelCell (FUEL), and Bloom Energy (BE). The first hydrogen ETF of its kind in the US, the company has an expense ratio of about 0.30%.

The stocks of this ETF are up by 1.20% and, as the hydrogen fuel market grows in size, it stands to benefit directly with its extensive portfolio. While providing investors with a sense of safety, its returns might not be enough for the more adventurous investors. Nevertheless, it would be wise to pair investments into Defiance Hydrogen ETF with other direct investments to fully get the best of both worlds.

7. Plug Power (PLUG)

Market Value: $15.24 Billion

Dynamic Stock Chart for TICKER PLUG

Based in New York, USA, Plug Power is a notable provider of hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe. These include the manufacturing and selling of hydrogen fuel cell engines and generators, and also the building of hydrogen fuel infrastructure.

The main thing to know about these stocks is that although it's currently not turning a profit, pre-pandemic numbers were nothing short of staggering. For instance, stock prices were 950% by the end of 2020 with a return of 1560% cumulatively. Investors, including analysts in JPMorgan, are willing to bet that, once the market returns to normal, Plug Power will start seeing renewed profits and a return to form. Investment into the stocks of Plug Power is more of a bet on the future potential of the company.

That being said, 2021 started really well for the company with the announcement of a partnership with carmaker Renault for their FCEVs which plans to build 5 regional green hydrogen facilities across the US. This also comes with approval for a state-of-the-art green hydrogen plant in New York which points to a very productive future for the company.

Bottom Line

And those were the top 5 hydrogen fuel cells stocks available in 2021. If you're interested, as an environmentally-conscious investor, to make profitable investments in greener energy, other stocks you can invest in include:

Investment into these kinds of stocks is both guiltless and highly satisfying. They provide an avenue for you to help heal the environment while still earning you a pretty penny in return. With the right amount of research, some active management, and a well-plotted strategy, your income definitely is as renewable as the stocks you invest in.

About the author 

Jenna Lofton, the founder of StockHitter.com, has been actively trading stocks and investing for nearly 11 years.

She holds an MBA in Finance, and another in Business Administration, and lives in Staten Island, NY.

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