Wall Street Favorites: 3 Hydrogen Stocks With Strong Buy Ratings for February 2024
The positive future of the U.S. economy is evident as the Inflation Reduction Act (IRA) continues to drive economic growth. With over 272 new clean energy projects announced, the IRA is creating jobs, fostering innovation and providing investment opportunities, especially within hydrogen stocks. Despite political challenges, the transition to a more sustainable economy is already generating job growth. This has positioned the U.S. as a global leader in green technology and offered investment opportunities for those embracing the shift towards sustainability. These hydrogen stocks are leading the change, investing in green profits in the coming years.
Linde (LIN)
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First on our list of hydrogen stocks is Linde (NASDAQ:LIN), a global chemical company. Linde is the world’s largest industrial gas company by market share and revenue. LIN is valued at $431.63, a year-over-year increase of 32.99%.
Linde is already established in the market but shows signs of future growth. The global hydrogen generation market size is anticipated to reach $257.9 billion in 2028.
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Financially, Linde improved on nearly every metric during Q3 2023. The company reported $1.57 billion in net income, marking a YOY increase of 22.94%. Net profit margin and EPS also received massive surges of $19.19 and $3.63 respectively. Overall, Q3 2023 proved successful for Linde, with the company outperforming previous years on EBITDA by 12.71%.
Linde is set up for success through recent announcements of partnerships. In 2023, the company agreed to invest $1.8 billion to supply clean energy to a large-scale blue ammonia plant in Texas. As Linde continues to emphasize development, expect a climb to be one of the top hydrogen stocks to buy.
Air Products & Chemicals (APD)
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Air Products & Chemicals (NYSE:APD) is a global leader in the supply of industrial gases, liquefied natural gas and related equipment and applications expertise. Currently trading at $227, the 12-month average price target for APD is $245, with a high estimate of $250 10and a low estimate of $240.
The net margin of ADP is an impressive 21.7%, surpassing industry averages. This signals robust profitability and effective cost management. Key performance metrics further underscore the company’s strength. The return on equity (ROE) stands out at 4.87%, indicating effective utilization of equity capital. Additionally, the return on assets (ROA) impressively exceeds industry averages at 2.2%, highlighting efficient asset utilization.
APD is poised for significant growth, fueled by a strategic partnership with Eneco in the Netherlands. The recently signed 10-year Power Purchase Agreement (PPA) for renewable energy is a catalyst for this trajectory. Under the PPA, APD will source a major portion of its energy needs for nitrogen and oxygen production from the Vlagtwedde Solar PV farm. This commitment not only aligns with APD’s sustainability goals, but also positions the company to offset emissions equivalent to approximately 45,000 households.
A consensus from 20 analysts showcases a bullish feeling towards APD, evident in a favorable buy rating of 2.3.
Fusion Fuel Green (HTOO)
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Fusion Fuel Green (NASDAQ:HTOO) stands at the forefront of the renewable energy revolution. It specializes in the production of hydrogen across key markets such as Portugal, Spain and Morocco. Currently trading at $2.28, HTOO is up 310% in the past three months.
HTOO commands a market cap of $19.43M and an enterprise value of $20.21M. Exhibiting financial resilience with a trailing P/E ratio of 2.80, HTOO recently revealed significant milestones in its Q3 Investor Update.
HTOO achieved a major catalyst with European Commission approval for its HEVO-Portugal project, securing a spot in the Important Projects of Common European Interest Hy2Infra program. The €650 million initiative in Portugal, targets an annual production of 62,000 tonnes of green hydrogen. This endorsement enables Fusion Fuel to initiate funding talks with government entities and the European Investment Bank. HEVO-Portugal is envisioned as a pivotal player in Southern Europe’s green hydrogen hub. This will contribute to swift decarbonization and bolstering the European green hydrogen economy.
Analysts gave this stock a rating of 2.7 marking it as a “Buy”, with an average price target of $2.43 and a current stock price of $2.28. HTOO thrives with a 310% three-month surge, strong financials and European Commission approval for the game-changing HEVO-Portugal project.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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