Top Performing Hydrogen Stocks

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Hydrogen is a clean energy source that companies are scrambling to harness. Renewable energy has been a profitable segment for investors with high growth potential, with Tesla as one of its poster children. Tesla shares have rallied by over 1,000% in the past five years as more people buy electric vehicles (EVs). The company’s success has investors paying attention to new trends in renewable energy, and hydrogen is an area to consider. Investors who want to capitalize on the growing popularity of hydrogen energy can consider some of these top picks.

Quick Look at Top Performing Hydrogen Stocks:

Deep Dive

Some hydrogen stocks have rewarded long-term investors as companies create new technologies and raise more money. These are some of the top hydrogen stocks to consider.

1. Plug Power Inc. (NASDAQ: PLUG)

Plug Power is a leader in the push for affordable green hydrogen. The company’s hydrogen fuel cells power electric motors that can help with transportation. The company has many big-name customers, such as Amazon, BMW, The Southern Company, Carrefour and Walmart.

2. Air Products & Chemicals Inc. (NYSE: APD)

Air Products sells gas and chemicals to industrial clients. The company has several business opportunities, including hydrogen. Unlike most hydrogen stocks, Air Products is profitable and pays a quarterly dividend.

3. Bloom Energy Corp. (NYSE: BE)

Bloom Energy strives to change the future of energy with electricity and hydrogen. Bloom Energy has several Fortune 100 companies as its clients.

4. BP (NYSE: BP)

BP is an international oil company that is working on a switch to hydrogen energy and other clean energy solutions. The company is determined to become a net zero company by 2050 and advance the hydrogen industry across the U.K., Europe, Australia, and the U.S. Investors get a proven oil company with a 4.50 P/E ratio and 4.25% dividend yield. The company has double-digit profit margins and gives investors a solid business model while they wait to see how the company’s clean energy initiatives pan out.

5. Cummins Inc. (NYSE: CMI)

Cummins is a multinational company that specializes in power generation products and has several initiatives around zero emissions. Cummins is in the process of developing hydrogen engines. While investors wait for the hydrogen segment to develop, they have plenty to like about the stock’s past performance.

6. Linde (NYSE: LIN)

Linde is a global multinational chemical company that has been on a tear. Linde covers the full spectrum of the hydrogen value chain and helps customers on the path to zero emissions.

7. New Fortress Energy Inc. (NASDAQ: NFE)

New Fortress Energy is a global energy infrastructure company that is on a mission to make clean energy more accessible and affordable. The small-cap company has a $6 billion market cap and a 0.70% dividend yield. New Fortress Energy has a hydrogen division that aims to achieve zero emissions and zero carbon. The company invests in and deploys emerging hydrogen production technologies that aim to bring hydrogen’s cost down to $1 per kilogram.

8. FuelCell Energy Inc. (NASDAQ: FCEL)

FuelCell Energy is a speculative microcap with a market cap under $1 billion. The company creates and maintains Direct Fuel Cell power plants. These plants improve the energy supply and enable more affordable recovery and storage. If hydrogen becomes a big hit, FuelCell Energy may become one of the leaders. The company is a high-risk, high-reward hydrogen play, but the company did have an impressive cash and short-term investment position.

Pros

Investing in hydrogen stocks can put you in a good position as hydrogen becomes more popular. Some hydrogen stocks have other business segments that give them more financial flexibility and allow them to pay dividends to shareholders. The P/E ratios for profitable hydrogen stocks are generally lower than the ones you may find for growth stocks in other industries. The continued investment in clean energy solutions bodes well for hydrogen stocks and can reward long-term investors.

Where to Buy

Investing in hydrogen stocks can diversify your portfolio and potentially increase your returns. However, you have to select the right broker for your stock investments. If you are still on the fence or looking to get a new broker, these are some of the top choices to consider.

Frequently Asked Questions 

Best Hydrogen Stocks Methodology

The best hydrogen stocks methodology involved looking for a mix of stocks that are pure hydrogen plays and conglomerates where hydrogen represents a segment of total revenue. This methodology involved reviewing historical returns, revenue growth and valuations.