3 Hydrogen Stocks to Buy Under $5
Multiple analysts, including those at Goldman Sachs, say that the hydrogen market could be worth trillions by 2050. The International Energy Agency says the world still needs $4 trillion by 2030 to meet global net zero emission goals. And, the International Renewable Energy Agency (IRENA) says, “The consumption of hydrogen by G7 countries could grow between four and seven times by 2050.”. All of which could fuel the below-listed hydrogen stocks under $5.
Even the Biden Administration is turning to hydrogen as an energy source for vehicles, manufacturing, and electricity generation. With such substantial catalysts – and the world going green – now is an opportune time to jump into hydrogen stocks. Especially these top hydrogen stocks under $5.
Here are your best options.
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Nel ASA (NLLSF)
Headquartered out of Oslo, Norway, Nel ASA (OTCMKTS:NLLSF) specializes in electrolyzer technology for the production of renewable hydrogen, and hydrogen fueling equipment for road-going vehicles, as noted on the company’s site.
While the stock trades just pennies above $1 at the moment, it has a distinct advantage. Over the last few days, the company obtained the first-ever Underwriters Laboratories Canada (ULC) certification for a hydrogen fueling station. This could give the company a massive leg-up in the global hydrogen fueling station market, which could be worth about $1.5 billion by 2032, as noted by Precedence Research analysts.
Helping, parts of the U.S. are seeing an increase in hydrogen fuel cell cars. According to InsideEVs.com, 1,076 new hydrogen fuel cell cars were sold in Q2. That was an improvement of about 34% year over year.
Ballard Power Systems (BLDP)
Source: Pavel Kapysh / Shutterstock.com
While the Ballard Power Systems (NASDAQ:BLDP) chart is nothing to write home about just yet, give it time. For one, the company – whose zero-emission proton exchange membrane (PEM) delivers fuel cell power for buses, trucks, trains, and marine vessels – is technically oversold.
After dropping from about $5, the BLDP stock found support around $3.90 dating back to around May. It’s also over-extended on RSI, MACD, and Williams’ %R, and is just now starting to pivot higher. If it can maintain current momentum, I’d like to see it initially test prior resistance around $5.75.
It also just partnered with Ford (NYSE: F) Trucks to supply a fuel cell system as part of the development of a hydrogen fuel cell-powered vehicle prototype. According to the press release, “The partnership includes an initial purchase order for 2 FCmove-XD 120 kW fuel cell engines that are planned to be delivered by Ballard in 2023.”
FuelCell Energy (FCEL)
Source: Alexander Kirch / Shutterstock.com
At $1.46 a share, FuelCell Energy (NASDAQ:FCEL) has seen better days. But don’t write it off just yet. For one, it’s also oversold and technically over-extended on RSI, MACD, and W%R. If you pull up a two-year chart of BLDP, you can see that each time those indicators align in oversold territory, the stock bounces back. It happened in April, in December, in October, in May, and in January 2022. And from the looks of it, it’s about to happen again.
While the company will release its next earnings report in September, prior reports showed strength. For example, in its Q2 2023 report, the company saw revenue grow to $38.3 million from $16.4 million year over year. Its gross loss was $6.1 million, as compared to a $7.3 million loss, year over year, as well. Also, while it lost just over $33 million in the quarter, it does have more than $353 million in cash on hand.
Again, we’ll learn more about FCEL earnings in September. We also have to remember that FCEL has ongoing relationships with Toyota (NYSE:TM) and Exxon Mobil (NYSE:XOM).
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.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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