In this article, we discuss the 9 best hydrogen fuel cell stocks to buy.
Hydrogen fuel cell technology is set to grow as governments around the world get serious about solving the climate change problem. According to the International Energy Agency (IEA), global CO2 emissions have decreased by 5.8% in 2020 but are projected to increase by 4.8% in 2021 as demand for coal, oil, and gas recovers alongside the economy. As a result, governments across the world are making efforts to invest in and produce more energy from renewable sources such as hydrogen, solar, wind, and geothermal.
Hydrogen cell fuel is a clean fuel that can be used to generate electricity for a variety of applications such as electric cars, buildings, electronic devices, trucks, and backup power systems. Some of the most popular hydrogen fuel cell companies are Bloom Energy Corporation (NYSE:BE), FuelCell Energy, Inc. (NASDAQ:FCEL), Plug Power Inc. (NASDAQ:PLUG), Cummins Inc. (NYSE:CMI), and Ballard Power Systems Inc. (NASDAQ:BLDP).
According to a report, the global hydrogen fuel cell market was valued at $2.5 billion in 2020 and is forecasted to reach $13.8 billion by 2026, increasing at a compound annual growth rate (CAGR) of 33.1% over that period. One of the catalysts driving the growth in the hydrogen fuel cell market is the demand for electric vehicles. According to a market report published by Allied Market Research, the hydrogen fuel cell electric vehicle market was valued at $652 million in 2018 and is expected to grow to $42 billion by 2026, at a CAGR of 66.9%. Among the biggest car manufacturers that develop hydrogen fuel cell-powered electric vehicles include Toyota Motor Corporation (NYSE:TM), Honda Motor Co., Ltd. (NYSE:HMC), and Hyundai Motor Company (OTC:HYMTF).
Industrial gas distributor Linde plc (NYSE:LIN) is also a significant player in the hydrogen fuel cell market. The U.K.-based gas company builds and supplies hydrogen refueling stations globally. Linde plc (NYSE:LIN) also started building the world’s first hydrogen refueling station for passenger trains in Germany last year, which is set to operate in early 2022. Linde plc (NYSE:LIN) shares are up 12.3%, year to date.
Image by Mikes-Photography from Pixabay
Our Methodology
The stocks on our list were picked based on their fundamentals and prospects for growth based on key business characteristics. We chose hydrogen fuel cell stocks that have long-term growth prospects and high analyst ratings.
We ranked these stocks based on the number of hedge funds having stakes in them, based on our data of over 873 hedge funds.
Why should we pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let’s now look at the 9 best hydrogen fuel cell stocks to buy.
Best Hydrogen Fuel Cell Stocks To Buy
9. Hyzon Motors Inc. (NASDAQ:HYZN)
Number of Hedge Fund Holders: N/A
We start our list of the 9 best hydrogen fuel cell stocks to buy with hydrogen mobility company Hyzon Motors Inc. (NASDAQ:HYZN). The New York-based mobility company manufactures heavy-duty hydrogen fuel cell-powered commercial vehicles such as trucks, coaches, and buses. Hyzon Motors Inc. (NASDAQ:HYZN) has delivered approximately 500 fuel cell-powered commercial vehicles between 2019 and 2020.
JPMorgan analyst Bill Peterson is bullish on Hyzon Motors Inc. (NASDAQ:HYZN) and initiated an Overweight rating on Hyzon Motors Inc. (NASDAQ:HYZN) with a price target of $18 per share on September 9. According to the analyst, Hyzon Motors Inc. (NASDAQ:HYZN) is well-positioned to outperform competitors due to its early leadership in fuel cell vehicles, excellent collaborations within the hydrogen ecosystem, and pure-play focus.
Hyzon Motors Inc. (NASDAQ:HYZN) received $506.2 million in cash in the second quarter of 2021, net of transaction charges and redemptions, as of July 16, 2021.
Hyzon Motors Inc. (NASDAQ:HYZN), with its hydrogen fuel cell-powered heavy-duty trucks, will play a significant role in global economies’ decarbonization plans, similar to how Bloom Energy Corporation (NYSE:BE), Cummins Inc. (NYSE:CMI), Ballard Power Systems Inc. (NASDAQ:BLDP), FuelCell Energy, Inc. (NASDAQ:FCEL), and Plug Power Inc. (NASDAQ:PLUG) contribute to reducing carbon dioxide emissions.
8. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 12
Toyota Motor Corporation (NYSE:TM) is one of the major car companies around the world capitalizing on the $1.17 billion hydrogen fuel cell vehicle market. The Japanese automaker ranks eighth on the list of the 9 best hydrogen fuel cell stocks to buy. Toyota Motor Corporation (NYSE:TM) manufactures and sells hybrid cars, electric cars, and luxurious vehicles. The company markets hydrogen fuel cell-powered cars under Mirai and Sora names.
In addition to selling hydrogen fuel cell-powered cars, Toyota Motor Corporation (NYSE:TM) plans to supply fuel-cell tech to other automobile manufacturers and other types of vehicles including ships, trains, and buses. The automobile stock gained 14%, year to date.
Toyota Motor Corporation (NYSE:TM) saw its stock rise 1.7% on August 25 after the carmaker announced plans to open a hydrogen fuel cell plant in Kentucky in 2023, where it plans to produce integrated dual fuel cell modules used in manufacturing heavy-duty commercial trucks.
In the first quarter of fiscal 2022, Toyota Motor Corporation (NYSE:TM) reported an EPS of $5.87, beating estimates by $1.15. The company’s revenue in the first quarter came in at $72.4 billion and beat revenue estimates by $3.5 billion.
Ken Fisher of Fisher Asset Management is one of the biggest stakeholders of Toyota Motor Corporation (NYSE:TM) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 12 funds were bullish on Toyota Motor Corporation (NYSE:TM) by the end of the June quarter, compared to 18 in the previous quarter.
Just like Bloom Energy Corporation (NYSE:BE), Cummins Inc. (NYSE:CMI), Ballard Power Systems Inc. (NASDAQ:BLDP), FuelCell Energy, Inc. (NASDAQ:FCEL), and Plug Power Inc. (NASDAQ:PLUG), Japanese automaker Toyota Motor Corporation (NYSE:TM) is one of the best hydrogen fuel cell stocks to buy according to market analysts and hedge funds.
7. Advent Technologies Holdings, Inc. (NASDAQ:ADN)
Number of Hedge Fund Holders: 13
Fuel cell technology provider Advent Technologies Holdings, Inc. (NASDAQ:ADN) ranks seventh on the list of 9 best hydrogen fuel stocks to buy according to market analysts. The fuel cell company manufactures basic components that track the performance of hydrogen fuel cells and other energy systems.
Laurence Alexander of Jefferies on July 6 maintained an Outperform rating on Advent Technologies Holdings, Inc. (NASDAQ:ADN) with an $18 price target.
Through acquisitions, Advent Technologies Holdings, Inc. (NASDAQ:ADN) has grown to be one of the fastest-growing fuel cell companies. In June, the Boston-based fuel cell company acquired the Fischer Group’s fuel cell systems businesses, Serenergy and Fischer eco-solutions GmbH, in Denmark, Germany, and the Philippines. In the previous three months, the stock gained 10.31%.
Of the 873 elite funds tracked by Insider Monkey, 13 were long Advent Technologies Holdings, Inc. (NASDAQ:ADN) at the end of the June quarter.
Advent Technologies Holdings, Inc. (NASDAQ:ADN) is one of the best hydrogen fuel stock picks according to market analysts alongside Bloom Energy Corporation (NYSE:BE), Cummins Inc. (NYSE:CMI), Ballard Power Systems Inc. (NASDAQ:BLDP), FuelCell Energy, Inc. (NASDAQ:FCEL), and Plug Power Inc. (NASDAQ:PLUG).
6. FuelCell Energy, Inc. (NASDAQ:FCEL)
Number of Hedge Fund Holders: 14
One of the drivers of innovation in the renewable energy market is FuelCell Energy, Inc. (NASDAQ:FCEL), which lands in the sixth spot on the list of 9 best hydrogen fuel cell stocks to buy. The Connecticut-based renewable energy company commercializes stationary fuel cell power plants across the US and internationally.
On September 15, B. Riley analyst Christopher Souther kept a Neutral rating on FuelCell Energy, Inc. (NASDAQ:FCEL). The analyst praised the company’s strong third-quarter results and expressed confidence in FuelCell Energy, Inc.’s (NASDAQ:FCEL) next-generation technology. Souther set a price target of $8 for the fuel cell stock.
FuelCell Energy, Inc. (NASDAQ:FCEL) released its third-quarter earnings on September 14 and reported an EPS of -$0.04, beating estimates by $0.01. The company’s revenue in the third quarter grew 43% year over year to $26.82 million and beat revenue estimates by $6.19 million. The company’s gross profit in Q3 2021 came in at $1.1 million. The stock gained 206.2% in the past twelve months.
As of the end of the second quarter, 14 hedge funds tracked by Insider Monkey reported owning stakes in FuelCell Energy, Inc. (NASDAQ:FCEL). The total worth of these stakes is $105 million. This shows the hedge fund sentiment is positive for the hydrogen fuel cell company as 13 funds had stakes in the company in the previous quarter, having a total worth of $68 million.
5. Ballard Power Systems Inc. (NASDAQ:BLDP)
Number of Hedge Fund Holders: 15
Ballard Power Systems Inc. (NASDAQ:BLDP), which ranks fifth on the list of the 9 best hydrogen fuel cell stocks to buy, supplies top of the line heavy-duty modules, fuel cell stacks, backup power systems to major companies including Siemens, Audi AG, Plug Power Inc. (NASDAQ:PLUG), and Van Hool.
On September 23, Piper Sandler analyst Pearce Hammond maintained a Neutral rating on Ballard Power Systems Inc. (NASDAQ:BLDP) with a price target of $12 per share.
In the second quarter of 2021, Ballard Power Systems Inc. (NASDAQ:BLDP) reported an EPS of -$0.07, missing estimates by -$0.02. The company’s revenue in the second quarter came in at $24.96 million and beat revenue estimates by $3.78 million.
Of the 873 elite funds tracked by Insider Monkey, 15 were long Ballard Power Systems Inc. (NASDAQ:BLDP) at the end of the second quarter of 2021. Paul Marshall And Ian Wace of Marshall Wace LLP are the leading stakeholders of the company owning 3.19 million shares worth $58.7 million.
4. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 20
Bloom Energy Corporation (NYSE:BE) is one of the biggest providers of hydrogen fuel cell power globally and it is placed on the fourth spot on the list of 9 best hydrogen fuel cell stocks to buy. The California-based power generation company supplies clean energy to some of the largest corporations in the world such as Alphabet Inc. (NASDAQ:GOOG), Comcast Corporation (NASDAQ:CMCSA), Adobe Inc. (NASDAQ:ADBE), and Morgan Stanley (NYSE:MS).
Bloom Energy Corporation (NYSE:BE) saw its stock rise 1.7% in pre-market trade on July 21 after the company announced the first Combined Heat and Power project in partnership with SK Engineering, which is South Korea’s first utility-scale solid oxide fuel cell CHP venture.
On September 30, BMO Capital analyst Ameet Thakkar initiated a Market Perform rating on Bloom Energy Corporation (NYSE:BE) with a price target of $22 per share. Meanwhile, David Shaw of D E Shaw, a quantitative hedge fund manager, is one of Bloom Energy Corporation’s (NYSE:BE) top stockholders, with 791,743 shares valued at $21.3 million at the end of the second quarter of 2021.
In the second quarter of 2021, Bloom Energy Corporation (NYSE:BE) reported an EPS of -$0.23, missing estimates by -$0.18. The company’s second-quarter revenue was $228.47 million, an increase of 21.6% year over year. The stock has gained 6.89% in the past twelve months.
3. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 34
Plug Power Inc. (NASDAQ:PLUG), which ranks third on the list of the 9 best hydrogen fuel cell stocks to buy, is one of the leading players in the hydrogen fuel cell power sector. On October 13, Morgan Stanley analyst Stephen Byrd upgraded Plug Power Inc. (NASDAQ:PLUG) to Overweight from Equal Weight, citing that the hydrogen fuel cell company is well-positioned to gain in the global transition to a low-carbon economy. The analyst increased the price target for Plug Power Inc. (NASDAQ:PLUG) to $40 from $35.
In the second quarter of 2021, Plug Power Inc. (NASDAQ:PLUG) reported an EPS of -$0.18, missing estimates by -$011. The company’s revenue in the second quarter was $124.56 million and beat revenue estimates by $13.35 million. Shares of Plug Power Inc. (NASDAQ:PLUG) climbed 87% over the past year.
In the recent quarter, Plug Power, Inc. (NASDAQ:PLUG) has seen an uptick from the world’s largest hedge funds. At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $878 million in Plug Power Inc. (NASDAQ:PLUG), up from 25 hedge funds in the previous quarter worth $612 million.
David Shaw of D E Shaw recently upped his stake in Plug Power Inc. (NASDAQ:PLUG) by 23% to 14.8 million shares worth over $507 million at the end of the second quarter of 2021. Overall, 34 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in the New York-based hydrogen fuel cell company at the end of June 2021.
2. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 45
Truck engine maker Cummins Inc. (NYSE:CMI) ranks second on the list of the 9 best hydrogen fuel cell stocks to buy. The Indiana-based company provides hydrogen fuel cell technology used to power heavy-duty trucks, buses, trains, boats, and tractors. In addition, Cummins Inc. (NYSE:CMI) also offers stationary storage systems and fuel cell-powered energy backup.
On August 4, Credit Suisse analyst Jamie Cook raised the price target of Cummins Inc. (NYSE:CMI) to $307 from $300 and kept his Outperform rating.
The company has a market cap of $33.13 billion. In the second quarter of 2021, Cummins Inc. (NYSE:CMI) reported an EPS of $4.10, beating estimates by $0.07. The company’s second-quarter revenue came in at $6.11 billion, an increase of 59% year over year, and beat revenue estimates by $113.13 million. The solid quarter result of Cummins Inc. (NYSE:CMI) was driven by strong demand across the company’s key markets. Shares of Cummins Inc. (NYSE:CMI) increased 10.10% in the past twelve months.
At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.10 billion in Cummins Inc. (NYSE:CMI), up from 37 hedge funds in the previous quarter worth $817 million.
1. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 55
Topping the list of 9 best hydrogen fuel cell stocks to buy is Linde plc (NYSE:LIN), one of the biggest pioneering suppliers of hydrogen fuel cell infrastructure in the world having more than 200 hydrogen refueling stations 80 hydrogen electrolysis plants globally.
Linde plc (NYSE:LIN) also started building the world’s first hydrogen refueling station for passenger trains in Germany last year, which is set to operate in early 2022. Linde plc (NYSE:LIN) shares are up 12.3%, year to date.
On September 17, Societe Generale analyst Peter Clark kept a Buy rating on Linde plc (NYSE:LIN) and increased his price target for the stock to $365 from $350.
In the second quarter of 2021, Linde plc (NYSE:LIN) reported an EPS of $2.70, beating estimates by $0.17. The company’s revenue in the second quarter was $7.58 billion, an increase of 19% year over year, and beat revenue estimates of $202.68 million. Shares of Linde plc (NYSE:LIN) increased 28% in the past year.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $5.92 billion in Linde plc (NYSE:LIN), up from 43 hedge funds in the previous quarter worth $4.63 billion.
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Disclosure: None. 9 Best Hydrogen Fuel Cell Stocks To Buy is originally published on Insider Monkey.
