3 Hydrogen Stocks to Buy for the Next Bull Run: February 2024
Hydrogen stocks are capturing the spotlight, heralded as a game-changer in the green energy sector. The enthusiasm is palpable, with industry titans like Bank of America forecasting an $11 trillion market potential. This sentiment is amplified by the Biden Administration’s $7 billion commitment to U.S. hydrogen hubs, underscoring a national pivot towards sustainable, low-cost hydrogen in achieving ambitious climate targets.
Moreover, hydrogen production costs are expected to halve by 2030, with a continued decline through 2050. This promising economic trend is sparking accelerated interest and investment in clean hydrogen technologies, highlighting its growing feasibility and appeal.
Examining further, the anticipated upswing in annual hydrogen production to 38MT by 2030 signals an opportune moment for investors. With the sector gearing up for substantial growth, honing in on the top three hydrogen stocks provides a strategic entry into this rapidly evolving market. This move promises a foothold in the future of energy, ensuring both environmental and financial triumph.
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Hydrogen Stocks: Hyster-Yale Materials (HY)
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Hyster-Yale Materials Handling (NYSE:HY) leads the lift truck market with hydrogen fuel cell-powered forklifts. Powered by Nuvera fuel cells, a strategic acquisition in 2014, the company is redefining material handling. This initiative reflects a global move towards sustainability and emphasizes Hyster-Yale’s dedication to advancing green technology in logistics.
Moreover, Hyster-Yale’s financial strength is evident, with stock value soaring by 109.80% last year. The third-quarter report further impresses with GAAP earnings per share (EPS) of $2.06, beating expectations by $1.56. Additionally, revenue hit $1 billion, a 19.0% annual increase, exceeding forecasts by $67.4 million. Outperforming the sector median by a remarkable 178.38%, the company achieved a robust 20.15% year-over-year (YOY) revenue growth.
Furthermore, as Hyster-Yale passionately pioneers hydrogen-powered vehicles in a Port of Los Angeles pilot, it signifies their commitment to eco-solutions and generates revenue streams. Notably, TipRanks analysts anticipate an impressive 21.07% upside potential, underscoring the promising synergy of environmental dedication and financial growth.
Shell (SHEL)
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Shell (NYSE:SHEL) is tactically reducing its workforce, aligning with its U.S. rivals following a sharp increase in last year’s earnings to $6.2 billion. This decision complements Shell’s vigorous financial performance and strategic move to develop the Victory gas project in the U.K. North Sea, showcasing its commitment to growth and innovation.
Financially, Shell stands on solid ground, evidenced by the stock price’s notable ascent of 10.03% over the previous year. Illustrating the company’s operational excellence, the cash from operations reaches a substantial $54.20 billion, markedly eclipsing the sector median by a jaw-dropping 7,834.63%. This substantial outperformance underscores Shell’s robust financial health and operational prowess.
Moreover, this financial health is echoed by TipRanks analysts who assign Shell a moderate buy, predicting a 14.74% upside potential. Consequently, Shell is skillfully balancing its operational adjustments with strategic investments and financial growth, reinforcing its position in the industry and drawing positive recognition from market experts.
Linde Plc (LIN)
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Linde Plc (NASDAQ:LIN), a global leader in the chemical sector, recently announced a significant stride with a $1.8 billion investment to supply clean hydrogen to OCI’s world-scale blue ammonia project. This venture is part of Linde’s broader vision, eyeing a potential $50 billion investment pipeline globally, showcasing its commitment to innovation and sustainability.
Financially, Linde outperformed expectations in its fourth quarter, reporting Non-GAAP EPS of $3.59, beating forecasts by 9 cents. Additionally, the company achieved revenue of $8.3 billion, a 5.1% YOY increase, which surpassed predictions by $230 million. Underlying sales rose 4% due to price gains, offsetting volume stability compared to the prior year.
Moreover, Linde’s commitment to sustainability is reinforced by securing 25-year renewable energy agreements with Guangdong Energy Group and China Three Gorges Corp., totaling 320 GWh/year. TipRanks analysts have assigned Linde a strong buy rating, with an anticipated upside potential of 10.57%, reflecting investor confidence in Linde’s strategic direction and ability to deliver tremendous returns.
On the date of publication, Muslim Farooque did not have (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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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