DuPont de Nemours Inc. (NYSE: DD) does not produce hydrogen directly. The company got into the hydrogen fuel cell business in 2011. Like Plug Power, DuPont supplies PEM products (as does Ballard Power, another fuel cell company that didn’t make this list).
Over the past 12 months, DuPont has added about 25% to its share price, all of it prior to mid-January. Since then the shares have dropped more than 17%. Analysts are bullish on the stock, with 15 of 21 giving Buy or Strong Buy ratings to the shares. None of the surveyed analysts have a Sell rating on DuPont.
The stock trades at around $70.60, implying an upside potential of 33%, based on a median price target of $94.00. Shares trade at 16.4 times expected 2021 EPS, 14.3 times estimated 2022 EPS and 12.8 times estimated 2023 EPS. DuPont pays an annual dividend of $1.20, for a yield of 1.7%.
Indiana-based Cummins Inc. (NYSE: CMI) designs, manufactures and services diesel and natural gas engines and related components. In 2019, Cummins acquired fuel cell systems maker Hydrogenics. Last November, the company said it would work with Navistar to develop a hydrogen-powered semi truck. In April, Cummins fuel cells (based on PEM technology) powered the first flight of a hydrogen-powered aircraft.
Cummins’s share price has risen by nearly 10% over the past 12 months. Since peaking in mid-March, however, shares are down nearly 15%. Analysts have adopted a wait-and-see attitude toward the company, with 15 of 25 putting a Hold rating on the stock. The other 10 rate the shares a Buy or Strong Buy.
At a price of about $237.00, the implied upside based on a median price target of $280.00 is 18%. Cummins stock trades at 14.5 times expected 2021 EPS, 12.3 times estimated 2022 EPS and 11.5 times estimated 2023 earnings. Cummins pays an annual dividend of $5.80, for a yield of 2.47%.
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