The demand for better environmental tech and solutions continues to ramp up as we tread the path toward a greener world. Due to this, several sectors have reached new pinnacles. However, this growth isn’t the same for each market. One of these lagging markets is hydrogen, which is why some investors are hunting for the cheapest hydrogen stocks to buy.
Specifically, hydrogen is an excellent alternative to fossil fuel due to its abundance and energy storage capabilities. Several companies are developing improved and more efficient ways of harvesting, processing, and delivering hydrogen.
Despite obstacles and costs, investors looking for the cheapest hydrogen stocks to buy right now could be in for the ride of their lives as hydrogen production is expected to grow by leaps and bounds. Let’s delve into three most promising hydrogen stocks to buy today.
Bloom Energy Corporation (BE)
While some might underestimate the value of solid oxide electrolyze, Bloom Energy Corporation (NYSE:BE), a renewable power generation and distribution company, thinks differently.
The company has partnered with Shell to develop a large-scale and replicable solid oxide electrolyzer (SOEC) system to produce hydrogen for Shell’s assets.
“This technology could represent a potentially transformative moment for opportunities to decarbonize several hard-to-abate industry sectors,” according to KR Sridhar, Founder, Chairman, and CEO of Bloom Energy Corporation.
BE has been making great strides in its financial performance. It reported record revenue of $1.33 billion for fiscal year 2023, representing an impressive 11.2% year over year (YOY) growth. Also, products and services reported 12.3% growth to $1.16 billion.
Additionally, the company has been focusing on innovative offerings like Be Flexible, Combined Heat, and Power Systems to ensure it meets the rising demand for clean energy solutions. Bloom Energy Corporation is looking forward to modest growth in 2024. Revenue is expected to be in the $1.4 billion and $1.6 billion range, while non-GAAP operating income is anticipated to reach $75 million and $100 million.
Olin Corporation (OLN)
Olin Corporation (NYSE:OLN) is a vertically integrated manufacturer and distributor of ammunition and chemical products. Its operations are split into multiple segments. However, we’ll focus on Olin’s hydrogen segment. Indeed, Olin claims to be the nation’s largest electrolytic hydrogen producer.
While Olin experienced a decline in sales and net income in Q4 of 2023, several factors make me think it’s still a good investment. First, the company’s repurchase program reached $711.3 million, signifying shareholder value. Second, the company anticipates that its “value accelerator initiative” will enhance electrochemical unit (ECU) values. This, in turn, should positively impact the company’s chlor alkali and vinyl segments. Also, Olin expects overall Q1 of 2024 results to show moderate adjusted EBITDA growth across all businesses.
While 2023 has been challenging for the company, Chairman, President, and CEO Scott Sutton remains optimistic. He believes that Olin’s continued resilience despite the economic environment reflects its commitment to maintaining an investment-grade balance sheet.
Chart Industries (GTLS)
A champion for sustainable a sustainable future, Chart Industries (NYSE:GTLS) is a leader in engineered services for clean energy.
Chart Industries’ main cryo tank solutions and heat transfer systems segments play a big role in the hydrogen market. The solutions provide storage, distribution, and application solutions for various hydrocarbons and industrial gases and supply equipment for hydrocarbon and gas separation, liquefaction, and purification.
Newsweek recognizes Chart Industry’s commitment to ESG and social responsibility, earning it a spot in the periodical’s list of America’s most responsible companies in 2024.
GTLS reported strong full-year results for 2023. Sales reached $3.35 billion, representing a near 108% growth from the $1.61 billion it reported in fiscal year 2022. Net income attributable to the company also accelerated from $24 million to $47.3 million in fiscal year 2023.
Furthermore, Chart Industries reported accelerated spending in 2023 due to acquisitions and integrations. However, its recent integration with Howden helped the company exceed its cost synergy and achieve its commercial targets ahead of schedule.
For 2024, Chart Industries expects total sales growth of 28% to 37% and adjusted EBITDA growth of 52% to 68%. Its impressive growth numbers and optimistic outlook show the company has more than enough room for growth for value-hungry investors.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
