Hydrogen stocks could get explosive.
In fact, with the market valued at $158.8 billion in 2023, it could be worth nearly $260 billion by 2028, according to Markets and Markets. Even Goldman Sachs says at least $5 trillion of investment is still needed in the hydrogen supply chain if we want to hit net zero.
“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.
While you won’t get rich overnight from these hydrogen stocks, you may still want to strongly consider them.
Air Products and Chemicals (APD)
After gapping form about $256 to about $212, Air Products and Chemicals (NYSE:APD) is starting to pivot from oversold RSI, MACD, and Williams’ %R.
From its current price of $228.09, I’d eventually like to see it refill its bearish gap around $256 again shortly. As we wait for the company to recover, we can collect its dividend. APD just increased its quarterly dividend to $1.77 per share, payable on May 13 to shareholders of record, as of April 1.
Recently, analysts at Bank of America upgraded APD to a buy rating. According to Seeking Alpha, the firm noted that APD “has an 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,” Chairman, President and Chief Executive Officer Seifi Ghasemi added.
Plug Power (PLUG)
Another one of the hottest hydrogen stocks to buy and hold is Plug Power (NASDAQ:PLUG).
Over the last few weeks, PLUG doubled on reports of a new hydrogen plant in Georgia which can reportedly produce about 15 tons of liquid electrolytic hydrogen. Also, it was upgraded by analysts at Roth MKM to a buy with a price target of $9.
Additionally, PLUG said it would reduce annual expenses by $75 million, which will include job cuts as well. And the company noted it finalized negotiations with the U.S. Department of Energy for a loan facility of $1.6 billion. However, don’t rush to buy just yet. After running from about $2.26 to $5.14 over the last few weeks, it’s seeing some healthy profit-taking. Look to buy PLUG on dips.
Direxion Hydrogen ETF (HJEN)
Or, we can diversify at a low cost with an exchange traded fund (ETF), like the Direxion Hydrogen ETF(NYSEARCA:HJEN).
Trading at $10.75, with an expense ratio of 0.45%, the ETF holds positions in hydrogen production and generation stocks, hydrogen storage and supply, fuel cells, batteries, systems, and solutions. Some of its top holdings include Bloom Energy (NYSE:BE), Air Liquide (OTCMKTS:AIQUY), Ballard Power(NASDAQ:BLDP), FuelCell Energy (NASDAQ:FCEL), and Plug Power, to name a few.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
