Energy Business

5 Best-Performing Hydrogen Stocks to Buy Now

Fuel Cell Energy stock has added about 200% to its share price over the past 12 months. The stock price soared in the first few weeks of this year, when retail investors couldn’t get enough of it. Since then, the shares are down more than 75% and no analyst has a Buy or Strong Buy rating on the stock.

With a median price target of $7.00 and a current price of around $6.60, the upside potential is 5.7%, and the company is not expected to post a profit in 2021, 2022, or 2023. Investors will sink or soar on share price movements.

Plug Power

Hydrogen fuel cell maker Plug Power Inc. (NASDAQ: PLUG) makes turnkey solutions for both the mobility and stationary markets focused on proton exchange membrane (PEM) fuel cells. The company touts its mobility products for everything from drones to delivery vans and long-haul trucking. Its stationary products include high- and low-power generators designed to provide backup power.

Over the past 12 months, the shares are up more than 47%, after spiking in late January, again amid a blizzard of retail buying. Since then, the shares are down about 64%. Plug Power gets Buy or Strong Buy ratings from 17 of 25 analysts and Hold ratings from another six.

The stock’s current price of around $27.20 implies an upside of 32%. Like Fuel Cell Energy, the company is not expected to post a profit in 2021, 2022 or 2023 and is strictly a growth play.

Linde

U.K.-based Linde PLC (NYSE: LIN) manufactures a variety of industrial gases, including oxygen, acetylene and hydrogen. The company operates the world’s largest green hydrogen plant, which uses wind power to create hydrogen. Linde also has tested use of hydrogen fuel to reduce steel plant emissions.

Linde’s share price has risen by more than 26% in the past year, without any of the huge spikes we saw with Fuel Cell Energy and Plug Power. Analysts are bullish on the stock, with 12 of 15 putting Buy or Strong Buy ratings on the shares. The other three have Hold ratings on the stock.

With a median price target of $350.00 and a current price near $297.90, the upside potential is about 17.5%. Linde’s stock trades at 28.5 times expected 2021 earnings per share (EPS), 25.9 times estimated 2022 EPS and 23.3 times estimated 2023 EPS. The company also pays an annual dividend of $4.24, for a yield of 1.42%.

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