2 No-Brainer Hydrogen Stocks to Buy With $200 Right Now
Tuesday, Nov 12, 2024 8:00 am ET
6min read Hydrogen, the most abundant element in the universe, is poised to become a key player in the clean energy revolution. With its potential to power everything from cars to factories without emitting greenhouse gases, hydrogen is gaining traction as an ideal fuel source. But which hydrogen stocks should you consider investing in? Let's explore two promising options that could turn a modest $200 investment into a significant return.
1. Plug Power (PLUG)
Plug Power is a pioneer in the hydrogen fuel cell industry, with a strong focus on forklifts and charging services for warehouses and fulfillment centers. They've deployed over 69,000 fuel cell systems and 250 fueling stations, with top customers like Amazon and Walmart. Plug Power's revenue grew 40% in 2022 and 27% in 2023, driven by acquisitions that expanded their cryogenic equipment unit. Despite net losses widening during those years, analysts expect Plug's revenue to grow at a CAGR of 25% from 2023 to 2026, narrowing net losses. The U.S. Department of Energy recently granted them a new $1.66 billion loan to build up to six new green hydrogen energy production facilities.
With an enterprise value of $2.67 billion, Plug's stock looks undervalued at 2.3 times next year's sales. Insiders have bought nearly five times as many shares as they sold over the past 12 months, and Norway's Norges Bank recently increased its stake in the company to nearly 8%. Plug Power's strategic partnerships and acquisitions position it for future success, making it a no-brainer hydrogen stock to consider.
2. Nikola (NKLA)
Nikola produces electric semi-trucks, initially focusing on battery-powered electric trucks (BEVs) but now delivering hydrogen fuel-cell electric trucks (FCEVs). Despite a rocky start, with missed delivery targets, founder fraud, and battery fires, Nikola is making strides in the hydrogen fuel-cell electric truck market. They delivered 203 FCEVs in the first nine months of 2024 and expect to deliver 300-350 FCEVs for the full year. Analysts expect Nikola's revenue to more than triple to $112 million in 2024 and nearly triple to $328 million in 2025. With an enterprise value of $338 million, Nikola's stock looks dirt cheap at roughly 1 time next year's sales. Insiders have bought 15 times as many shares as they sold over the past 12 months, indicating confidence in the company's long-term prospects.
Amidst all the challenges, a few green shoots are appearing for Nikola. They aim to build a network of 60 hydrogen charging stations across the U.S. with their partner Voltera by 2026. As the hydrogen vehicle market expands, Nikola's strategic partnerships and focus on FCEVs make it another no-brainer hydrogen stock to consider.
In conclusion, both Plug Power and Nikola offer compelling opportunities for investors looking to capitalize on the growing hydrogen market. With improving macroeconomic conditions and increasing interest in green energy, these stocks could soar, turning a $200 investment into a significant return. However, remember that all investments come with risks, and it's essential to do your own research and consider your risk tolerance before making any investment decisions.
1. Plug Power (PLUG)
Plug Power is a pioneer in the hydrogen fuel cell industry, with a strong focus on forklifts and charging services for warehouses and fulfillment centers. They've deployed over 69,000 fuel cell systems and 250 fueling stations, with top customers like Amazon and Walmart. Plug Power's revenue grew 40% in 2022 and 27% in 2023, driven by acquisitions that expanded their cryogenic equipment unit. Despite net losses widening during those years, analysts expect Plug's revenue to grow at a CAGR of 25% from 2023 to 2026, narrowing net losses. The U.S. Department of Energy recently granted them a new $1.66 billion loan to build up to six new green hydrogen energy production facilities.
PLUG Total Revenue (FY), Total Revenue (FY) YoY
With an enterprise value of $2.67 billion, Plug's stock looks undervalued at 2.3 times next year's sales. Insiders have bought nearly five times as many shares as they sold over the past 12 months, and Norway's Norges Bank recently increased its stake in the company to nearly 8%. Plug Power's strategic partnerships and acquisitions position it for future success, making it a no-brainer hydrogen stock to consider.
2. Nikola (NKLA)
Nikola produces electric semi-trucks, initially focusing on battery-powered electric trucks (BEVs) but now delivering hydrogen fuel-cell electric trucks (FCEVs). Despite a rocky start, with missed delivery targets, founder fraud, and battery fires, Nikola is making strides in the hydrogen fuel-cell electric truck market. They delivered 203 FCEVs in the first nine months of 2024 and expect to deliver 300-350 FCEVs for the full year. Analysts expect Nikola's revenue to more than triple to $112 million in 2024 and nearly triple to $328 million in 2025. With an enterprise value of $338 million, Nikola's stock looks dirt cheap at roughly 1 time next year's sales. Insiders have bought 15 times as many shares as they sold over the past 12 months, indicating confidence in the company's long-term prospects.
NKLA Total Revenue YoY, Total Revenue
Amidst all the challenges, a few green shoots are appearing for Nikola. They aim to build a network of 60 hydrogen charging stations across the U.S. with their partner Voltera by 2026. As the hydrogen vehicle market expands, Nikola's strategic partnerships and focus on FCEVs make it another no-brainer hydrogen stock to consider.
In conclusion, both Plug Power and Nikola offer compelling opportunities for investors looking to capitalize on the growing hydrogen market. With improving macroeconomic conditions and increasing interest in green energy, these stocks could soar, turning a $200 investment into a significant return. However, remember that all investments come with risks, and it's essential to do your own research and consider your risk tolerance before making any investment decisions.
