Hydrogen technology is the next big thing that is part of the Go Green movement.
In the recent few months, the emphasis on the use of hydrogen has increased with the greater significance of the technology in producing clean energy. Investors and analysts have been keenly following hydrogen stocks as they hold massive potential in the long-term.
The key aspect to mention is the new US administration looks very focused and keen to work on clean energy development. For that reason, hydrogen will in the top priority list to be among the future tech to be used in the production of green and clean energy. We have already seen various organizations expanding their hydrogen ecosystem.
So, it’s not surprising that hydrogen stocks are catching the headlines. The future lies in this technology. Let’s see the three best hydrogen stocks that hold the most potential.
Bloom Energy (BE)
Bloom Energy (BE) is a leading manufacturer and marketer of solid oxide fuel cells and is one of the first to join the hydrogen energy race. The company sees a bright future ahead with US President’s initiative for clean energy.
Considering the fundamentals, Bloom Energy looks solid with its cash position of $416.7 million, as of September 30, 2020. Whereas, the company ended last year with a debt reduction of $180.1 million, which now stands at $527.1 million of debt. The cash is still lower than the total debt, but the decrease in its debt shows that the company is moving in the right direction.
By the end of the last quarter of 2020, the company reported a revenue of $249.4 million, an increase of 16.8% year-over-year. Four different investor events coming up in March 2021, so investors should keenly observe what Bloom Energy has to offer—heading forward.
Ballard Power Systems (BLDP)
Ballard Power Systems (BLDP) is a developer and manufacturer of proton exchange membrane fuel cell products for markets and uses hydrogen as a fuel. Ballard shares have over 217% during the last year. The company has still much in power and has upside that can push the stock further this year.
Ballard Power has some big plans for the long-term. The company anticipates its annual revenue to be around $5.2 billion by 2030. This reflects a CAGR of 46% from its 2020 expected revenue of $115 million. In the past five years, the company’s revenue has grown at an average rate of 21%.
With the hydrogen market evolving, Ballard may have to increase its future outlook—if the market grows faster than expected. In that premise, the company has expected a 20% margin for its earnings before interest and taxes aren’t supported by a concrete plan. So, Ballard Power System (BLDP) is another key hydrogen stock to watch for in 2021.
Nikola Corp. (NKLA)
Nikola Corp. (NKLA) is a leading EV maker and a pioneer in the zero-emission concept. The company has jumped into the hydrogen fuel cell market. The company is popular for its hydrogen-powered truck, Nikola One, and has been part of several other hydrogen projects.
At the beginning of 2021, the company obtained an innovative electric rate schedule with Arizona Public Service Company. Based on the following deal, Nikola will work on the development of hydrogen-based fueling solutions for the transportation industry.
Analysts are mostly bullish on Nikola and if it continues to be successful with its hydrogen projects, it could become a potential investment option for hydrogen stock investors.