As we approach a green energy revolution, hydrogen’s potential as a lasting, sustainable fuel source grows. This article probes the intersection of artificial intelligence and hydrogen investment. The goal? To use machine learning to predict stock performance in this sector and provide you with top hydrogen stock picks, as per AI.
Using AI projections, investors can make smart decisions about these stocks’ likely growth in the changing hydrogen market. These hydrogen stocks could indeed be key in driving a sustainable future as we move towards renewable energy.
I used tools like ChatGPT, a Finviz stock screener, and a Google Sheets machine learning extension to create this article. Now, let’s explore the top hydrogen stock picks as per AI.
Plug Power (PLUG)
AI’s top investment pick is Plug Power (NASDAQ:PLUG), a company specializing in fuel cell solutions for various hydrogen and electric motors. The choice of Plug Power’s shares hinges on its strong revenue and earnings growth, factors likely to enhance its valuation. Impressively, PLUG stock’s EPS is set to climb by 65.10% in the next year. Additionally, the company boasts a solid sales growth history, with a rise of 47.60% over the previous five years.
Plug Power has caught the eye of leading investors. Billionaire Steve Cohen’s Point72 Asset Management snapped up 2.3 million shares, while Citadel Advisors, under billionaire Ken Griffin, purchased 4.56 million shares. Additionally, the Canada Pension Plan Investment Board secured over 215,200 PLUG shares. These significant investments underscore the rising interest in PLUG stock and its growth potential.
Furthermore, there’s a final piece of the puzzle. The stock’s analyst consensus price target is $19. This means it could be trading at a significant discount to its intrinsic value.
Ballard Power Systems (BLDP)
Ballard Power Systems (NASDAQ:BLDP) was another one of those hydrogen stock picks by AI. Due to this, there’s a case that BLDP stock is undervalued. With a $6.92 analyst target price and losing 36.98% of its value this past year, it may be due for a rebound.
BLDP stock produces fuel cells for the transportation sector, particularly for trucks. Furthermore, some progress has been made in this area. The company will supply 60 hydrogen fuel cells for First Mode’s mining trucks. Also this month, Ballard said it would continue to scale production of its hydrogen solutions.
Although Ballard is currently unprofitable, investors seem to have regained their risk appetites. A bull market for the S&P 500 and a strong U.S. economy may form a rational basis for this. Some investors positioned their portfolios defensively this year with value stocks, bonds, gold, and the like. Due to the strong market performance, we could see a pivot back to growth, which could give rise to riskier options like BLDP stock.
FuelCell Energy (FCEL)
FuelCell Energy (NASDAQ:FCEL) is the last hydrogen stock pick. This company produces fuel cell power plants. These plants have some niche applications in scientific and laboratory settings, but its overall addressable market is potentially massive.
Furthermore, like other hydrogen stocks on this list, FCEL stock’s share is undervalued. Analysts gave this stock a price target of $2.91. It’s also trading at a discount, as it’s near the 52-week low.
Also, adding to the bullish thesis, the company secured an additional $87 million in funding. The company’s outlook for the future is also positive, and it’s in a financially healthy position. Sales increased 133.50% year-over-year, and its net income grew 51.5%. These factors make it a stock for investors to add to their watchlists.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
