What I find attractive about these undervalued hydrogen stocks is that many don’t have attention from mainstream investors due to being comparatively riskier than the marquee names we often hear about. So here are the best undervalued hydrogen stocks to buy for November.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) focuses on hydrogen fuel cell systems crucial for electric vehicles and industrial equipment. The company has a significant role in the Appalachian Regional Clean Hydrogen Hub (ARCH2) as part of the Regional Clean Hydrogen Hubs program €‹.
The bull case for Plug Power acknowledges a challenging quarter with sales missing expectations, a significant loss per share and a substantial cash burn that raises concerns about its long-term sustainability as a going concern. If PLUG can’t get external financing through debt or equity, it’s currently tracking toward bankruptcy, thus making this company especially risky.
However, there is a glimmer of hope. PLUG also reported a 5% increase in year-over-year sales, driven by fuel, power and service revenue gains and the prospect of overcoming temporary supply chain setbacks that have curbed its top and bottom lines.
PLUG epitomizes a falling knife. But for those with extreme risk tolerance, a small position in the company could multiply gains rapidly, thus making it one of those undervalued hydrogen stocks to consider.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) provides clean energy solutions, mainly through solid oxide fuel cells for onsite power generation, aiming to reduce emissions and improve efficiency.
The case for BE stock couldn’t be more different than PLUG. Bloom Energy reported a 37% increase in revenue year-over-year for Q3 2023, with significant growth in Product and Service revenue. Despite a drop in GAAP gross margin, non-GAAP gross margin saw a notable increase, and the company shifted from a non-GAAP operating loss in Q3 2022 to a profit in Q3 2023.
The bull case for Bloom Energy is bolstered by a consensus buy rating from analysts and an optimistic stock price target of $20, suggesting a robust upside from the current price. Bloom’s innovative energy solutions for data centers further enhance its competitive edge. It’s, therefore, one of those undervalued hydrogen stocks to buy.
Air Products (APD)
Air Products (NYSE:APD) serves a variety of industries with essential gases and related equipment, including hydrogen.
For contrarian investors, now might be a good time to invest in APD. The company’s shares fell 10.8% after a mixed earnings report, where it exceeded EPS estimates with $3.15 per share but fell short of the expected $3.35 billion in sales, only reaching just under $3.2 billion.
However, analysts are bullish on APD stock, with upward revisions for future EPS and a firm consensus target price well above current levels. Furthermore, its resilience amidst revenue dips and insider buying by the CEO reflects a solid growth trajectory.
As with the case of PLUG, those who can shoulder the burden of high risk also reap high rewards if their position pays off. This then makes APD worthy of being one of those undervalued hydrogen stocks to buy.
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.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.