Hydrogen stocks could be some of the most explosive opportunities heading into the new year. For one, we already know major investment banks believe hydrogen could become a multi-trillion-dollar opportunity. Two, President Biden just invested $7 billion to build seven new hydrogen hubs throughout the U.S. In fact, according to the U.S. Department of Energy:
“The H2Hubs are expected to collectively produce three million metric tons of hydrogen annually, reaching nearly a third of the 2030 U.S. production target and lowering emissions from hard-to-decarbonize industrial sectors that represent 30 percent of total U.S. carbon emissions. Together, they will also reduce 25 million metric tons of carbon dioxide (CO2) emissions from end-users each year—an amount roughly equivalent to combined annual emissions of 5.5 million gasoline-powered cars.”
With growing interest, investors may want to consider these hydrogen stocks to make your a millionaire.
Air Products and Chemicals (APD)
With a market cap of $61.8 billion, and a dividend yield of 2.51%, Air Products and Chemicals (NYSE:APD) is one of the hydrogen heavyweights with a good deal of upside potential.
For one, it and AES Corp. (NYSE:AES) will build a $4 billion green hydrogen production plant in Texas. Two, it’s building a 1.2 million tonne per year green hydrogen facility in Saudi Arabia, which could be the biggest in the world. And three, it’s investing in a blue hydrogen hub in western Canada.
And while recent earnings weren’t so hot, analysts like the stock at current prices. Jefferies, for example, just raised its price target on APD to $310 from $300. Mizuho (NYSE:MFG) raised its price target to $331 from $330. Bank of America (NYSE:BAC) just raised its price target to $328 from $320. And Wells Fargo (NYSE:WFC) increased its target to $345, with an overweight rating.
Bloom Energy (BE)
Weakness may be an opportunity for patient Bloom Energy (NYSE:BE) investors. Much like many other hydrogen stocks, BE is a technical disaster. But given time, and a good deal of patience, it could be a standout winner in the space. Especially if Goldman Sachs (NYSE:GS) and Bank of America are right about the industry’s multi-trillion-dollar potential.
Better, Bloom Energy is hoping its Bloom Electrolyzer, which is reportedly 15% to 45% more efficient than any other product on the market, will attract some new customers.
Analysts seem to like Bloom Energy, too. HSBC (NYSE:HSBC) just initiated a buy rating on the stock, with a $22 price target. The firm added that, “Bloom is a focused play on solid oxide fuel cells and electrolyzers, and with manufacturing capacity to scale.”
Global X Hydrogen ETF (HYDR)
Investors may want to consider a hydrogen ETF like Global X Hydrogen (NASDAQ:HYDR).
With an expense ratio of 0.5%, the ETF offers solid diversification with key hydrogen stocks for less than $7 a share. At the moment, the ETF invests in stocks involved with hydrogen production, and the development and manufacturing of hydrogen fuel cells. Some of its top holdings include Bloom Energy, Plug Power (NASDAQ:PLUG), Ballard Power (NASDAQ:BLDP), ITM Power (OTCMKTS:ITMPF) and Ceres Power (OTCMKTS:CPWHF).
While its chart is nothing to write home about, give it time. With a good deal of investment in hydrogen, and its future explosive potential, HYDR could easily bounce well off its current low. I’d like to see it rally back to at least $8 a share in the new year.
On the date of publication, Ian Cooper did not hold (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.
