HomeMarket NewsThe Power Play: Unearthing Wall Street's Hydrogen Gems That Could Fuel Your...

The Power Play: Unearthing Wall Street’s Hydrogen Gems That Could Fuel Your Fortunes

Actionable Trade Ideas

always free

These companies are navigating the turbulent waters of investments to steer the ship of the hydrogen economy toward prosperity.

favorite hydrogen stocks - Wall Street’s Favorite Hydrogen Stocks? 3 Names That Could Make You Filthy Rich

Source: DesignRage / Shutterstock.com

Plug Power (NASDAQ:PLUG) takes the hydrogen center stage. While PLUG stock faces a 70% dive over the last year, don’t jump ship just yet. This plunge doesn’t forecast the industry’s fate. The future may pave a gilded road with hefty investments and robust growth in the hydrogen realm.

Let’s shed light on three hydrogen treasures that might line your pockets with gold come 2030.

Air Products and Chemicals (APD)

Air Products (APD) logo on the Arts Quest building, Air Products is a sponsor of Air Products Town Square at Arts Quest in Bethlehem, PA

Source: Andy Borysowski / Shutterstock.com

Air Products and Chemicals (NYSE:APD) stands as a blue-chip anchor with tempting valuations. APD stock, boasting a forward price-earnings ratio of 19.4 and a 2.93% dividend yield, sets a solid course. Charting a path in the hydrogen world, the company’s Louisiana project, a $4.5 billion venture, is set to launch operations by 2026.

In a pivotal move, AES (NYSE:AES) and Air Products joined forces to construct a $4 billion green hydrogen facility in Texas last December.

Moreover, the NEOM Green Hydrogen collaboration, uniting ACWA Power, Air Products, and NEOM, promises the largest green-hydrogen-based ammonia facility globally, aiming for a daily carbon-free hydrogen production capacity of 600 tonnes.

Air Products steers a ship with grand ports. Expect prolonged revenue surges and cash flow tides on the horizon.

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company

Source: nitpicker / Shutterstock.com

Linde (NASDAQ:LIN) glides on an upward trajectory with sustainable momentum ahead. With a 1.19% dividend yield, LIN stock is no dud.

Positioned as an industrial gas powerhouse, Linde eyes investments in the ballpark of $7 to $9 billion over the next few years. A $3 billion allocation is set for converting 11 to 13 current facilities into clean hydrogen havens.

Linde carries a crown in the hydrogen realm. They run the world’s primary high-purity hydrogen storage cavern and harbor nearly 200 hydrogen refueling posts and 80 hydrogen electrolysis plants worldwide. With this expertise, Linde is poised for hefty investments as hydrogen demand skyrockets. Plus, Linde received accolades for the inaugural world-scale blue hydrogen project.

From a fiscal viewpoint, Linde raked in a $2.7 billion operating cash flow whopper for Q4 2023. With a potential annual operating cash flow exceeding $10 billion, Linde is financially armed for substantial ventures.

Bloom Energy (BE)

The Bright Future of Bloom Energy and Its Partnership with Shell

The Bright Future of Bloom Energy and Its Partnership with Shell

Bloom Energy: Weathering the Storm

Bloom Energy (NYSE:BE) shines brightly among smaller market players. Despite a 44% drop in BE stock value over the past year, the downturn presents a golden opportunity for astute long-term investors to be bet on.

The Strategic Alliance with Shell

Recent headlines showcase Bloom Energy’s strategic partnership with the industry giant Shell (NYSE:SHEL). The collaboration aims to explore decarbonization solutions leveraging Bloom’s cutting-edge hydrogen electrolyzer technology. Notably, Bloom’s solid oxide electrolyzer (SOEC) systems hold the promise of scaling up clean hydrogen production. Furthermore, the hydrogen generated will find applications across Shell’s diverse asset base. This blue-chip partnership is poised to fuel not just innovation but also growth.

Bright Projections for 2023 and Beyond

Looking ahead, Bloom Energy reported a revenue of $1.3 billion for 2023, marking an 11.2% increase year-over-year. The company’s forward guidance includes a revenue target of $1.5 billion for the current year, coupled with an expected expansion in gross margins. As the demand for Bloom Energy’s solid oxide electrolyzer systems gains momentum, the trajectory of revenue growth is expected to maintain its upward ascent.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research, and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy, and commodities sector.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.