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The 3 hottest hydrogen stocks to own for 2023


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The Dec. 13 news from Lawrence Livermore National Laboratory that researchers have produced more energy from hydrogen fusion than it has used is a major breakthrough. This breakthrough renews the hope that we will one day have almost unlimited, clean and carbon-free energy. It also renews the conversation about which of the hottest hydrogen stocks investors should own in 2023.

Investors are certain to express renewed interest in hydrogen stocks in the wake of the historic advancement. The news comes at the right time, as the sector fell through 2022. One indicator, the Global X Hydrogen Exchange Traded Fund (ETF) (NASDAQ:HYDRAULIC), has lost more than 40% of its value since the beginning of the year.

Let’s look at 3 hydrogen stocks to hold in 2023 as the narrative surrounding hydrogen grows stronger.

BLDP Ballard Power Systems $4.76
FCEL fuel cell energy $2.51
TO BE Bloom Energy $19.28

Ballard Power Systems (BLDP)

Ballard Power Systems Inc logo visible on display screen

Source: Pavel Kapysh / Shutterstock.com

Ballard Power Systems (NASDAQ:BLDP) sells and services fuel cells in many applications. One such application is its zero-emission proton-exchange membrane fuel cell that runs on hydrogen. This particular fuel cell has applications in the electrification of many vehicles, including cars, trucks, buses, trains, ships, and forklifts.

Recent news makes Ballard Power Systems a hydrogen stock to own and it will no doubt lead investors to learn more about the company’s developments. Among them are Ballard Power System’s partnerships with leading companies in the field. It works with ABB (NYSE:ABB) to market hydrogen fuel cells for ships. Additionally, the company has successfully tested liquid hydrogen fuel cells with Industries Chart (NYSE:GTLS).

A month ago, the company announced an order for 25 hydrogen fuel cell engines to be installed in buses deployed in Polish public transport systems. Ballard Power Systems’ revenue fell 15% year-over-year in the third quarter to $21.3 million, but it has a chance to turn recent headlines into bigger orders going forward.

Fuel Cell Energy (FCEL)

An image of the FuelCell logo (FCEL Stock).

Source: Bern James / Shutterstock.com

fuel cell energy (NASDAQ:FCEL) stocks should do well in 2023 and beyond as the company has a strong voice to dictate the future of renewable energy in the United States

On Dec. 16, FuelCell Energy’s lead attorney, Alexandrea Isaac, was appointed to the Commerce Department’s Renewable Energy and Energy Efficiency Advisory Committee (REEEAC). The committee is charged with increasing the export competitiveness of U.S. renewables, which should ultimately help FuelCell Energy directly.

The company provides fuel cell platforms installed at 95 sites on 3 continents. Additionally, investors will be pleased to know that FuelCell Energy is rapidly growing its revenue base. For the full fiscal year 2021, the company posted revenue of $69.6 million. This figure has increased to $91.3 million through July 31, 2022.

The company also benefits from President Biden’s Cut Inflation Act, which provides increased investment tax credits that favor business and industry.

Bloom Energy (BE)

Stock BE Bloom Energy logo on a building

Source: various photographs / Shutterstock

Bloom Energy (NYSE:TO BE) is another hydrogen stock to consider, as the company’s technology and efficient products are on the rise.

Investors need only look at the company’s third quarter earnings report to understand how well it is doing. Bloom Energy reported record third-quarter revenue of $292.3 million. This represented an increase of 41.1% compared to the same period of the previous year. These strong results allowed the company to reaffirm its previous revenue outlook for the year 2022 between $1.1 billion and $1.15 billion.

Bloom Energy is still trading in the red with a net loss of $57.1 million in the third quarter. However, that was only $5 million less than the net loss of $52.37 million a year earlier. Considering how quickly revenues have grown, arguably it doesn’t matter.

Bloom Energy’s cash and cash equivalents increased from $396 million to $492 million in the third quarter on an annual basis. This means he has more cash to invest as he sees fit.

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Alex Sirois is an Independent InvestorPlace Contributor whose personal equity investing style focuses on long-term stock picks, buy-and-hold, and wealth building. Having worked in multiple e-commerce industries to translation to education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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