3 Hydrogen Stocks That Will Make Early Investors Rich
With the global push to find clean and sustainable sources of energy, investors need to keep close tabs on hydrogen stocks to make you rich. Granted, this sector isn’t appealing to everyone because of its volatility and unpredictable nature. At the same time, those seeking gargantuan returns may want to earmark this industry for later analysis.
Compellingly, Grand View Research points out that in 2022, the global hydrogen generation market reached a valuation of $155.35 billion. Further, experts project that the sector will expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. At the culmination of the forecast period, the industry could print revenue of $317.39 billion.
Again, some words for the wise: the hydrogen space just hasn’t yielded consistently strong returns lately; indeed, quite the opposite. Still, if you’ve got the itch for extreme speculation, these may be the hydrogen stocks to make you rich.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Bloom Energy (BE)
Source: Sundry Photography / Shutterstock
Headquartered in San Jose, California, Bloom Energy (NYSE:BE) manufactures and markets solid oxide fuel cells that produce electricity on-site. One of the more recent entities among hydrogen stocks to make you rich, Bloom was founded in 2001, coming out of “stealth mode” in 2010. Further, it raised more than a billion dollars in venture capital funding before launching its initial public offering in 2018.
Now, since that time, circumstances haven’t exactly gone quite to plan. On a weekly average share basis, BE gave up more than 52% since the public debut. Against the January opener, BE fell 44% below parity. While not particularly encouraging, options traders seem willing to speculate on the enterprise. Specifically, Bloom’s implied volatility (IV) curve shows both risk mitigation and targeted upside wagers.
In the far out-the-money (OTM) put direction, IV peaks at 268%. For OTM calls, IV peaks at 335%. To use a baseball analogy, the pitcher needs to get two more strikeouts whereas the batter needs a clean hit to bring the runner on third base home. Interestingly, a recently sold put implies a floor at $15.
Analysts actually anticipate BE landing at $23.27, which suggests nearly 117% growth.
Plug Power (PLUG)
Source: T. Schneider / Shutterstock.com
One of the more popular hydrogen stocks to make you rich, Plug Power (NASDAQ:PLUG) engages in the development of hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity. Though incredibly relevant, PLUG also suffers a history of wild volatility. Since the beginning of this year, shares lost more than 47% of their equity value.
Ordinarily, such a performance should scare off investors. Financially, conservative investors will find difficulty justifying exposure here. Per investment data aggregator Gurufocus, PLUG suffers from six red flags. But if you’re willing to put that aside, PLUG could get extremely interesting. Looking at its options flow screener, it appears institutional money wrote 3,008 contracts of the Jan 19 ’24 17.50 Put.
Why is that important? Should the put buyer exercise the contract, the writer is on the hook for buying PLUG at the strike. Right now, shares trade hands at $6.40. Again, the strike stands at $17.50. However, here’s where it gets really interesting. Analysts believe that PLUG can hit $17.97, implying nearly 181% growth. So, gamblers might want to take a calculated risk.
Fusion Fuel Green (HTOO)
Source: Alexander Kirch / Shutterstock.com
Based on its website, Fusion Fuel Green (NASDAQ:HTOO) might give off the impression of scientific credibility. With a focus on green hydrogen and the possibility of a limitless supply of energy based on its electrolysis innovation, Fusion Fuel appears promising. However, one quick look at its chart verifies the high-risk profile. Priced at only 75 cents per share, HTOO gave up almost 84% of its market value.
So, to be crystal clear, you don’t engage with HTOO with money you cannot afford to lose. At the same time, because it lost so much, there’s a remote possibility that it’s one of the lithium stocks to make you rich. It really comes down to speculative behaviors in its options chain.
Despite the volatile nature, open interest for call options – at the available $2.50, $5, and $7.50 strike prices – runs sky-high. That basically means positions that have yet to be closed: think a pitcher having to adjust the routine because of runners in scoring position. These calls imply a massive upside if the stars align just right. Sure enough, H.C. Wainwright anticipates HTOO hitting $3.50, roughly in the middle of the aforementioned strike price range. That would represent almost 367% upside.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Hydrogen Stocks That Will Make Early Investors Rich appeared first on InvestorPlace.
