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Best 10 Hydrogen Stocks to Add to Your Watchlist

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Written by Timothy Sykes
Updated 5/16/2024 14 min read

The hydrogen industry stands at the forefront of the renewable energy transition, offering revolutionary potential in transforming our energy systems. Hydrogen, as a clean and versatile energy carrier, presents unique opportunities for significant growth in various sectors, including transportation, power generation, and industrial processes. This emerging market is not just a beacon for environmental sustainability but also a burgeoning arena for investment.

Here’s why hydrogen’s role is pivotal:

  • Hydrogen fuels do not produce emissions at the point of use.
  • They offer storage solutions that can stabilize the supply of renewable energy.
  • Hydrogen can replace conventional fuels in industrial applications.
  • It supports the decarbonization of sectors that are hard to electrify.

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Table of Contents

Why Should You Invest in Hydrogen and Fuel Stocks?

I don’t invest in any stocks — especially not in a sector as volatile as this! But the hydrogen sector is anticipated to expand significantly. These are the top reasons to keep it on your watchlist:

  • Market Growth: Hydrogen technology is essential in achieving climate goals, influencing global energy policies.
  • Innovation and Development: Continuous advancements in hydrogen fuel cell technology enhance its commercial viability.
  • Infrastructure Expansion: Increasing investments in hydrogen infrastructure promise broader adoption and market penetration.
  • Diversification: Hydrogen stocks can diversify investment portfolios, potentially reducing risk and increasing returns.

Diversifying your energy portfolio with renewable energy stocks is essential as the market shifts towards sustainability. Renewable energy stocks, especially those focused on solar and wind, are becoming increasingly attractive for long-term growth. These stocks not only offer environmental benefits but also the potential for substantial financial returns as global energy policies continue to favor green alternatives. For a deeper dive into this growing investment frontier, check out our guide on the best renewable energy stocks.

For Canadian investors, the renewable energy sector presents unique opportunities, especially in the context of national policies promoting green energy. The best renewable energy stocks in Canada are those that have strong potential for integration into the wider North American energy grid, poised to benefit from both governmental incentives and increasing consumer demand for sustainable energy solutions. To explore the top picks in this lucrative market, visit top renewable energy stocks in Canada.

Top 10 Hydrogen and Fuel Stocks to Buy

Identifying top hydrogen stocks involves scrutinizing companies that are not just participating but leading in the hydrogen fuel cell industry. These firms are characterized by robust technological advancements and substantial contributions to the hydrogen economy. Selecting these stocks hinges on factors such as innovation in hydrogen technologies, market cap reflecting growth potential and investor confidence, and their strategic roles in shaping industry standards.

The companies listed here are at the forefront of integrating hydrogen solutions across multiple market segments. They are pioneers, pushing the boundaries of the hydrogen fuel cell market, and are instrumental in driving forward the global hydrogen economy. Their efforts are vital in transitioning to greener energy sources, highlighting the importance of sustainable energy innovations in today’s investment landscape.

Some of these stocks overlap with the penny stocks on our power sector watchlist, allowing investors to engage with emerging companies that could be pivotal in the energy transition. These stocks might represent the next innovation wave in energy solutions. For insights into this high-risk, high-reward area, check out our breakdown on penny stocks in the power sector.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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1. Cummins (NYSE: CMI)

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Cummins is a significant player in hydrogen fuel cell technology, particularly for transportation and heavy machinery, aiding in the reduction of carbon emissions across these sectors.

What You Should Know

Cummins has formed strategic partnerships aimed at expanding its hydrogen infrastructure and enhancing its technology deployment across global markets.

Pros and Cons

  • Pro: Established market leader with robust growth in hydrogen solutions.
  • Con: Exposure to economic cycles affecting heavy industry sectors.

2. FuelCell (NASDAQ: FCEL)

FuelCell Energy is pivotal in deploying clean energy solutions across energy-demanding industries, emphasizing its role in sustainable power systems.

What You Should Know

The company is expanding its reach through collaborations that enhance its technological base and market presence.

Pros and Cons

  • Pro: Innovative technology with growing market adoption.
  • Con: High competition in the energy sector could impact growth.

3. Bloom Energy (NYSE: BE)

Bloom Energy provides cutting-edge solid oxide fuel cells, focusing on stationary power generation and utility applications.

What You Should Know

Bloom is aggressively pursuing expansion plans and strategic partnerships to bolster its market position.

Pros and Cons

  • Pro: Leader in solid oxide fuel cell innovation.
  • Con: Market fluctuations in renewable energy investments.

4. Plug Power Inc. (NASDAQ: PLUG)

A key supplier of hydrogen and fuel cell solutions, Plug Power’s technology supports a range of applications from warehouses to on-road vehicles.

What You Should Know

The company is enhancing its capabilities through significant investments in fuel cell development.

Pros and Cons

  • Pro: Strong growth trajectory and expansion into new markets.
  • Con: Susceptibility to volatile energy prices and regulatory changes.

5. Ballard Power Systems Inc (NASDAQ: BLDP)

Ballard focuses extensively on fuel cell solutions for public transport and commercial vehicles, facilitating cleaner urban transport solutions.

What You Should Know

Ballard maintains a strong global presence, offering innovative products that cater to the rising demand for sustainable transportation.

Pros and Cons

  • Pro: Established technology with wide application in public transport.
  • Con: Faces intense competition from emerging technologies.

6. ITM Power (OTCPK: ITM)

ITM Power specializes in electrolyzers and hydrogen energy solutions, contributing to energy storage and green hydrogen production.

What You Should Know

ITM is at the forefront of developing technologies that support the integration of renewable energy into industrial applications.

Pros and Cons

  • Pro: Innovative leader in electrolyzer technology.
  • Con: Technological risks associated with the development of new products.

7. Nel ASA (NEL)

Nel ASA excels in producing hydrogen from water electrolysis, offering both equipment and solutions for hydrogen fueling stations.

What You Should Know

Nel ASA is expanding its global footprint, aiming to capitalize on the increasing demand for hydrogen infrastructure.

Pros and Cons

  • Pro: Strong position in a fast-growing market segment.
  • Con: Dependent on the broader adoption of hydrogen as a mainstream energy source.

8. Linde (NASDAQ: LIN)

As a leader in industrial gases, Linde plc plays a critical role across various applications, including hydrogen for clean energy projects.

What You Should Know

Linde’s integrated approach spans hydrogen production, processing, and distribution, making it a comprehensive player in the sector.

Pros and Cons

  • Pro: Diversified operations providing stability and growth potential.
  • Con: Vulnerable to global industrial slowdowns.

9. Air Products and Chemicals, Inc. (NYSE: APD)

Air Products serves a crucial role in supplying hydrogen and other industrial gasses for diverse applications globally.

What You Should Know

The company is pioneering in hydrogen fuel applications and is a key supplier for various industrial needs.

Pros and Cons

  • Pro: Market leader with a strong sustainability focus.
  • Con: Intense global competition in the industrial gases market.

10. NextEra Energy (NEE)

NextEra Energy invests extensively in renewable energy projects, including those involving hydrogen to bolster its clean energy credentials.

What You Should Know

NextEra is advancing the role of hydrogen in renewable energy integration, supporting both existing grid infrastructure and new technology development.

Pros and Cons:

  • Pro: A leader in renewable energy with significant investments in hydrogen.
  • Con: Regulatory and technological changes pose potential risks.

Key Takeaways

  • Diverse Opportunities: These top hydrogen stocks represent a cross-section of the industry, from infrastructure to technology innovation, each offering unique market opportunities.
  • Growth Potential: The ongoing shift towards sustainable energy solutions highlights the significant growth potential within the hydrogen industry.
  • Strategic Investments: The companies listed are not just participating in the market; they are shaping the future of the hydrogen economy with their strategic initiatives.
  • Analysis Needed: While the potential for profit in hydrogen stocks is substantial, it requires careful consideration of market trends, technological advancements, and individual company strategies to optimize investment outcomes.

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Are there any hydrogen stocks on your watchlist? Let me know in the comments!

Frequently Asked Questions

What Is the Best Hydrogen Stock to Buy?

Factors influencing the best hydrogen stock choice include technological edge, market position, and recent performance. Based on current analyses, companies like Plug Power and Linde offer promising prospects due to their expansive market reach and innovative projects.

Is Hydrogen Good to Invest In?

Investing in hydrogen offers substantial benefits due to its pivotal role in clean energy transitions and its potential for significant market growth as global energy policies evolve towards sustainability.

Who Is the Biggest Hydrogen Company?

Currently, companies like Linde and Air Products lead the market in terms of scale, technological advancement, and comprehensive hydrogen solutions, positioning them as industry leaders globally.

What Hydrogen Stock Is Amazon Buying?

Amazon has shown interest in hydrogen technology for its sustainability and efficiency benefits. Specifically, it has invested in Plug Power to enhance its logistics operations, underscoring the strategic importance of hydrogen in large-scale supply chain applications.

How Do Hydrogen Fuel Cells Impact Electricity and Alternative Energy?

Hydrogen fuel cells are a cornerstone of the alternative energy landscape, converting hydrogen and oxygen into electricity. This technology, integral to clean technology initiatives, not only meets increasing market demand for green solutions but also mitigates greenhouse gas emissions associated with traditional energy sources.

What Should Investors Know About Stock Picks in the Hydrogen Fuel Sector?

Investors interested in the hydrogen fuel sector should compare stock options carefully. Key factors to consider include share price trends, overall financial health of the companies, and insights from industry analysts. Regularly updating research can provide a competitive advantage in this rapidly evolving market.

Can Industry Analysts Predict Success in Hydrogen Fuel Cell Technology?

Yes, industry analysts play a crucial role in forecasting trends and potential opportunities in the hydrogen fuel cell market. Their analyses help in understanding market trading volumes and trades, which are pivotal in making informed investment decisions.

What Strategic Objectives Guide Leaders in the Hydrogen Fuel Industry?

Leaders in the hydrogen fuel industry often focus on strategic objectives to navigate market dynamics. These strategies include launching initiatives to bolster market acceptance, securing a role as a world leader, and setting clear aims to steer the business towards future successes.

How Critical Are Partnerships for Market Acceptance of Hydrogen Technologies?

Partnerships are vital for the wider adoption of hydrogen technologies. They facilitate cooperation between different stakeholders, enhancing market acceptance and improving the adoption rate. Such collaborative efforts are essential in establishing a significant market role for new technologies.

What Funding Options Are Available for Hydrogen Fuel Cell Research?

Research into hydrogen fuel cells is often supported through various funding streams, including grants, investment funding, and specific funding for research projects. Innovation funding is crucial for pioneering new technologies and driving them from conceptual stages to market readiness.

How Do Companies Gain a Competitive Advantage in the Hydrogen Market?

Gaining a competitive advantage in the hydrogen market involves leveraging strategic business practices, including robust research and development, securing adequate funding, and forging strong partnerships. Companies that innovate to improve efficiency and cost-effectiveness are often seen as leaders in the industry.

What Strategies Propel Industry Leaders in Hydrogen-Powered Transportation?

Leaders in hydrogen-powered cars and buses implement comprehensive strategies including initiating market-focused projects and forming partnerships. These strategies are designed to elevate adoption levels and secure a long-term advantage in the market.

How Do Market Analysts Evaluate Funding and Partnerships in the Hydrogen Sector?

Market analysts assess the impact of funding for projects and strategic partnerships on the adoption of hydrogen technologies. Their insights help companies refine their market strategies and initiatives, aiming to optimize their competitive advantage.

How Do Leaders in Hydrogen Trucks Use Market Strategies to Enhance Shares?

Industry leaders in hydrogen trucks focus on strategic partnerships and market initiatives to boost their share prices. Effective stock comparisons and collaborative strategies ensure these companies maintain a leading position in the evolving market.

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”