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Hydrogen stocks could offer explosive growth opportunities.
With the market projected to reach $260 billion by 2028, according to Markets and Markets, it’s clear that hydrogen stocks are at the cusp of a major financial boom.
“Clean hydrogen is the ‘Swiss Army Knife’ of zero-carbon solutions because it can do just about everything,” according to U.S. Energy Secretary Jennifer Granholm.
Although there’s no instant path to wealth with these stocks, it’s hard to ignore their potential.
Air Products and Chemicals (APD)
After dropping from about $256 to about $212, Air Products and Chemicals (NYSE:APD) is beginning to reverse from oversold RSI, MACD, and Williams’ %R indicators.
From its current price of $228.09, I anticipate it to eventually close its bearish gap around $256 once again. In the meantime, investors can take advantage of its dividend. APD recently raised its quarterly dividend to $1.77 per share, payable on May 13 to shareholders of record, as of April 1.
Notably, Bank of America analysts upgraded APD to a buy rating. As reported by Seeking Alpha, the firm highlighted APD’s “attractive valuation, a stable business, and significant growth potential from clean-energy projects.”
“We remain committed to striking the right balance of returning cash to our shareholders and investing in our growth opportunities. We expect to return approximately $1.6 billion to our shareholders in 2024, extending our track record of more than 40 years of increasing the dividend,” stated Seifi Ghasemi, Chairman, President and CEO of Air Products and Chemicals.
Plug Power (PLUG)
Another top contender in the hydrogen energy sector is Plug Power (NASDAQ:PLUG).
In recent weeks, PLUG gained traction with news of constructing a new hydrogen facility in Georgia set to produce approximately 15 tons of liquid electrolytic hydrogen. Analysts at Roth MKM upgraded it to a buy with a price target of $9.
Furthermore, PLUG outlined plans to cut annual expenses by $75 million, including workforce reductions. Notably, the company secured a $1.6 billion loan facility from the U.S. Department of Energy. However, it’s important to exercise caution. Following a rally from about $2.26 to $5.14 recently, it’s currently experiencing a healthy period of profit-taking. Patience is key when considering an entry point for PLUG.