Hydrogen and Canadian hydrogen stocks have been all over the news
Governments around the world are establishing lofty hydrogen strategies,viewing hydrogen as a key resource to play a big part in combating climatechange. Even Canada has launched its own Hydrogen Strategy in December of lastyear.As part of the strategy, Canada believes that hydrogen can account for 30% ofdomestic end-of-use energy by 2050.Others which have announced hydrogen strategies include Japan, South Korea,Australia, New Zealand, Germany, France, Portugal, and the Netherlands, amongothers.This is all well and good but the current reality is that hydrogen is far frombecoming a viable commercial alternative to fossil fuels. There is much workto be done. From distribution and storage to transportation and consumption,the technology to adopt hydrogen is in its early stages.
We are still many years away from having a true end-to-end hydrogen supply
chainThat is the bad news.The good news? Investment in the technology is ramping up in a big way. Asmentioned, governments have made it publicly known that they intend to investin the hydrogen industry.In Canada, the industry is estimated to create upwards of $50B in revenue peryear and create 350,000 jobs by 2050. Internationally, demand is expected toreach $2.5 trillion by 2050.There is no question, mass potential for the industry exists. As mentionedhowever, it will all come down to how the technology progresses.Which brings me to how Canadian investors can take advantage of this globalshift. Lets have a look at the top stocks in the sector.
Ballard Power (TSE:BLDP) – Fuel cell technology
At the heart of a viable shift to hydrogen is innovative fuel cell technology.In Canada, there are a couple of options for investors to consider.The most well-known is Ballard Power (TSX:BLDP). The company is one of theleading hydrogen fuel cell companies. It has shipped over 850MW of (PolymerElectrolyte Membrane) PEM fuel cell products and counts many major automanufacturers as strategic partners.It is important to note that Ballard has a commercially viable product.However, as with any new technology the adoption has been slow as the companyis focused in areas where fuel cell technology has a clear advantage. Today,that is in the heavy commercial space.Thus far, it has powered 1,000 transit buses, 2,200 trucks, and has 4 trains,and 5 ship projects in development.Ballard is largely considered one of the world’s best fuel cell companies withleading technology and proven use cases. Unfortunately, the stock has beenanything but a leader. In the early 2000s, the company’s share price soaredbefore crashing down to earth and effectively did nothing for a decade.As interest in the hydrogen industry reached a fever pitch, Ballard’s shareprice soared to multi-year highs in early 2021. Then the bottom fell out andits share price lost ~60% of its value in the first half of 2021.The loss in value is not all that surprising. Ballard was trading at extremevaluations and was benefiting from the market euphoria. We advised StocktradesPremium members a few times to be cautious with Ballard. While the underlyingtechnology is sound, the stock price got way ahead of itself.Even at today’s prices, investors should exercise caution. We are still verymuch in the early days of the industry and at ~50 times sales, Ballard isn’texactly cheap.The company is not expected to become profitable for some time and analystsare expecting annual revenue growth in the 50% range through 2023. While thisis a healthy growth rate, Ballard has a mixed history of meeting estimates.
Overall, these are 2 strong Canadian hydrogen stocks to add to your radar
todayBottom line, both Ballard and Loop Energy are well positioned to be leadingfuel cell companies but in the short term, their fortunes are likely going tobe tied to market sentiment. Long-term, their success will be dependent onfurther innovations and the wide-spread adoption of hydrogen as an alternativesource of energy.Next, 2 top Canadian value stocks to look at today.7 hydrogen fuel cell stocks to watch in 2021The best hydrogen fuel cell stocks depend on your portfolio and investmentgoals — while volatility can be ideal for day traders, long-term investorswill want to look to stocks with steadier gains over time.
How to buy hydrogen fuel cell stocks
Sign up with an online broker or platform to invest in one of more of thesehydrogen fuel cell stocks. 1. Compare share trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Use our comparison table to narrow down top brokers by fees and bonuses. 2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card. 3. Search for the stock you’re interested in. Find the stock by name or ticker symbol, like PLUG or FCEL. Research its history to confirm it’s a solid investment against your financial goals. 4. Purchase now or later. Invest in the alternative energy industry today with a market order or use a limit order to delay your purchase until the stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts. 5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy fractional shares, depending on your broker. 6. Check in on your investment. Congratulations, you own a part of a hydrogen fuel cell company. Optimize your portfolio by tracking how your stock — and even the alternative energy sector as a whole — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.Promoted forSavvy Investors
Take a deeper dive into hydrogen fuel cell stocks
We round up a selection of stocks in or related to the alternative energyindustry, weighting the list more heavily towards popular mid- and large-capUS stocks.* * *
2. FuelCell Energy (FCEL)
FuelCell Energy, Inc. , together with its subsidiaries, designs, manufactures,sells, installs, operates, and services stationary fuel cell power plants fordistributed baseload power generation. The company offers SureSource productline based on carbonate fuel cell technology in various configurations,including on-site power, utility grid support, distributed hydrogen, andcarbon utilization, as well as micro-grid and multi-megawatt applications; andSureSource Recovery power plants for natural gas pipeline applications.FuelCell Energy stock opened the day at $8.09 after a previous close of $8.04.The latest price was $8.05 (25 minute delay). FuelCell Energy is listed on theNASDAQ, has a trailing 12-month revenue of around USD$72.6 million and employs316 staff. * Market capitalization: $2,555,299,584 * PEG ratio: -0.12 Back to top* * *
7. Bloom Energy Corporation (BE)
Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuelcell systems for on-site power generation in the United States, Japan, China,India, and the Republic of Korea. The company offers Bloom Energy Server, apower generation platform that converts standard low-pressure natural gas,biogas, or hydrogen into electricity through an electrochemical processwithout combustion. It serves hospitals, healthcare companies, retailers, anddata centers.Bloom Energy Corporation stock opened the day at $23.45 after a previous closeof $23.21. The latest price was $23.11 (25 minute delay). Bloom EnergyCorporation is listed on the NYSE, has a trailing 12-month revenue of aroundUSD$872.2 million and employs 1,316 staff. * Market capitalization: $3,301,605,888 * PEG ratio: 4.3489 Back to top
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10. Fuelcell Energy Inc. (NASDAQ:FCEL)
No of HFs: 17Total Value of HF Holdings: $35 MillionWe start the list of best climate change stocks to buy now with FuelcellEnergy, Inc. The company is a fuel cell power company that designs, produces,and operates services Direct Fuel Cell power plants that run on natural gasand biogas. FCEL offers efficient and affordable fuel cell solutionsconfigured for the supply, recovery, and storage of energy. During the thirdquarter of the year, FCEL posted revenue of $18.7 million.The top hedge fund holder for this stock is Sander Gerber’s Hudson Bay CapitalManagement which had over $7 million invested in the stock at the end ofSeptember.
9. Bloom Energy Corporation (NYSE:BE)
No of HFs: 17Total Value of HF Holdings: $176 MillionBE ranks 9th in our list of the best climate change stocks to buy now. BloomEnergy Corporation is headquartered in San Jose, California. The companymanufactures and markets solid oxide fuel cells that produce electricity on-site. According to the New York Times, solid oxide fuel cells are consideredto be the most efficient but most technologically challenging fuel-technology.During the third quarter of 2020, the company reported a revenue of $200.3million, a gross margin of 28.0%, and a net loss of $12.0 million.Is Bloom Energy worth your attention? In an article, First Eagle InvestmentManagement highlighted a few stocks where BE was one of them,> “Bloom Energy and its hydrogen fuel cell peers performed very well early in> 2020, as investors appeared to develop greater appreciation for the> potential of fuel cell technology in an environment of falling natural gas> prices. Bloom gave back all of this performance and more mid-quarter,> however, as a financial restatement that delayed the release of their 2019> 10K compounded the impact of the general coronavirus-related market selloff.> A better-than-feared fourth quarter earnings report, which showed 50% growth> in system acceptances, prompted a late-March rebound.”
8. Daqo New Energy Corporation (NYSE:DQ)
No of HFs: 18Total Value of HF Holdings: $109 MillionDQ ranks 8th in our list of the best climate change stocks to buy now. DaqoNew Energy Corporation is one of the leading manufacturers engaged in theproduction of monocrystalline silicon and polysilicon for use in solarphotovoltaic systems. During the third quarter of 2020, the company reported arevenue of $125.5 million.The top hedge fund holder for this stock is Jos Shaver’s Electron CapitalPartners which had over $34 million invested in the stock at the end ofSeptember.