HYDR - The 3 Most Undervalued Hydrogen Stocks to Buy Now: June 2023

2023-06-29 09:11:16 ET

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Analysts from both Goldman Sachs and Bank of America claim hydrogen is a multi-trillion-dollar opportunity. That’s a signal to go looking for undervalued hydrogen stocks .

According to Research and Markets , the green hydrogen market could surpass $2.829 billion this year. All as companies and governments around the world fight to reduce carbon emissions to meet climate goals.

We just saw North America’s first hydrogen-powered train in Canada, so the uses are making themselves clear.

As demand for hydrogen picks up steam, investors should consider these undervalued hydrogen stocks.

Bloom Energy (BE)

Bloom Energy (NYSE: BE ), which manufactures solid oxide fuel cells, is starting to show signs of life again.

After a rough start to the year, it recently found support at $12.48 and pushed back to $16.18. From here, I’d like to see it break above resistance around $18, and potentially retest $20.

It’s also gaining attention as a potential artificial intelligence play. According to Morgan Stanley , as AI tasks become far more data-intensive, it could fuel demand for cleaner energy. Bloom Energy was named a key renewable energy supply to data centers. A

Earnings have been solid. In its first quarter, company revenue jumped to $275.2 million, a nearly 37% jump year over year.

Product and service revenue jumped to $234.4 million from $168.8 million year over year, as well. Also, its operating loss of $63.7 million was an improvement from a year-earlier loss of $65.7 million.

Plug Power (PLUG)

For most of the year, Plug Power (NASDAQ: PLUG ) was beaten up. However, much like Bloom Energy, it’s showing big signs of life.

Since bottoming out around $7.39, it tested $11.78 and has since fallen back to support at $9.44. From here, I’d like to see it break above double top resistance at $12, and potentially test $15 again.

Driving the stock higher is its path to growth and new deals. In fact, according to a company press release , The company’s wants to produce more than 2,000 tons of hydrogen per day by 2030.

Plug Power will also supply Energy Vault (NYSE: NRGV ) 8 MW of hydrogen fuel cell stationary power to deliver clean energy to the city of Calistoga , California, during emergencies. This will be the largest planned hydrogen-powered fuel cell installation in the U.S.

Global X Hydrogen ETF (HYDR)

ETFs provide big exposure to multiple names at less cost. With an expense ratio of 0.50%, the Global X Hydrogen ETF (NASDAQ: HYDR ) is oversold at double bottom support around $8.

From $8, I’d like to see the HYDR ETF retest $11 resistance. This one, in particular, invests in companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells and electrolyzers, including Bloom Energy, Plug Power, and Ballard Power (NASDAQ: BLDP ) to name a few.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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