If You Can Only Buy One Hydrogen Stock in January, It Better Be One of These 3 Names
Contributing to the health of our environment is everyone’s job. As investors a great way we can help is by investing in companies. In our case, these companies would be in the energy sector, specifically in hydrogen stocks. This January brings good investment opportunities, such as these top hydrogen stocks.
Cummins (CMI)
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Cummins (NYSE:CMI) is the powerhouse behind several industries, making hydrogen engines and power systems that keep the world moving.
Lately, Cummins financial situation has been excellent. The company had a stellar third quarter, with $8.4 billion in revenue and $656 million in net income. Its profitability, as measured by EBITDA, reached 14.6% of sales, which translates into solid diluted earnings per share of $4.59. It also set a record with $1.5 billion in net cash, provided by operating activities.
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What makes Cummins even more interesting is its commitment to the environment. It has recently had to deal with complaints from U.S. authorities about emissions from some engines used in pickup trucks. Although it is settling this issue with regulators and expect a $2.04 billion charge in the fourth quarter of 2023, Cummins is not backing down. The company has its eyes on a sustainable future.
Speaking of sustainability, Cummins’ zero-emission technology segment, Accelera, is making waves. It has industry veterans Brian Wilson and Andreas Lippert at the helm, leading Accelera toward the mission of ensuring industries operate sustainably.
BP (BP)
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BP (NYSE:BP) is one of the leading companies in the global energy industry, involved in various aspects such as exploration, production, refining and marketing of oil and gas.
The oil and gas producer is considered one of the most promising hydrogen stocks due to its strong financial results. The company recently posted an that it had an operating cash flow of $8.7 billion and its net debt is down to $22.3 billion. The company also posted a solid underlying profit-to-replacement cost of $3.3 billion, reflecting higher refining margins, lower restructuring activity and successful oil marketing, despite weaker results in gas marketing and trading. This positive trend is evidenced by the reported profit of $4.9 billion for the quarter, which shows a significant improvement.
Of particular note is BP’s commitment to environmental sustainability. The partnership with the BWT Alpine F1 team aims to improve energy efficiency at its Enstone facility, demonstrating BP’s dedication to a path of zero net emissions. Additionally, the company is forging ahead in the electric vehicle charging sector with a $100 million investment in Tesla (NASDAQ:TSLA) ultrafast chargers. The company plans to invest up to $1 billion in electric vehicle charging in the U.S. by 2030, in line with growing demand for sustainable transportation.
The company’s commitment to shareholder value is manifested in significant share repurchases, demonstrating confidence in its financial position.
DuPont de Nemours (DD)
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DuPont de Nemours (NYSE:DD) is grabbing attention as one of the top hydrogen stocks to invest in this January, thanks to its diverse portfolio and dedication to sustainability.
In the third quarter of 2023, it faced some challenges with an 8% decline in net sales and a 10% drop in organic sales compared to the previous year. However, the company managed to post decent revenue with $291 million from continuing operations and operating EBITDA of $775 million. Adjusted EPS was $0.92, demonstrating its resilience in the face of market fluctuations.
An exciting development during the period was DuPont’s introduction of Low-GWP Styrofoam Brand XPS insulation in North America. This insulation, recognized with the 2023 ACC Sustainability Leadership Award, reduces embodied carbon by a whopping 94%. Despite a color change to gray, the insulation maintains its trusted performance, meeting market demands while earning eligibility for LEED v4.1 LCA Optimization credit.
Beyond financial reporting, it demonstrated its commitment to environmental responsibility through an agreement with the State of Ohio. The agreement, which involves a $110 million payment shared with Chemours (NYSE:CC) and Corteva (NYSE:CTVA), allocates 80% to restoring natural resources associated with the Washington Works facility.
DuPont’s share of approximately $39 million relates to claims related to PFAS and AFFF emissions, underscoring the company’s dedication to solving environmental problems and making a positive contribution to communities.
As of this writing, Gabriel Osorio-Mazzilli 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 (no position)
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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