According to the International Energy Agency, global hydrogen demand will need to double from about 94Mt in 2021 to more than 180 by 2030. Europe may need to see a six-fold increase in demand by 2050.
So it’s no surprise that some analysts foresee a multi-trillion-dollar hydrogen opportunity.
Goldman Sachs, for example, believes that hydrogen could become a $12 trillion market by 2030.
Bank of America says green hydrogen could be worth more than $11 trillion by 2050.
Morgan Stanley also thinks that hydrogen could become an $11 trillion opportunity.
That being said, here are my three top “no-brainer” hydrogen stocks:
| HJEN | Direction Hydrogen ETF | $15.66 |
| BE | Bloom Energy | $25.38 |
| PLUG | Plug Power | $17.48 |
Direxion Hydrogen ETF (HJEN)
Let’s start out with Direxion Hydrogen ETF (NYSEARCA:HJEN). Not only does it give investors exposure to top hydrogen stocks, but it also does so at below $16 per share.
With an expense ratio of 0.45%, this ETF holds 30 companies that are in the following sectors: Hydrogen production and generation, storage and supply, fuel cells and battery, and systems and solutions.
Some of the ETF’s top holdings include Plug Power, Bloom Energy, Ballard Power, Air Products and Chemicals and Doosan Fuel Cell Co.
Bloom Energy (BE)
One of the top hydrogen stocks is Bloom Energy, which manufactures solid oxide fuel cells. Bloom’s fuel cells are being used by retailers, healthcare centers and auto manufacturers.
Earnings have been strong. The company reported third-quarter revenue of $292.3 million in 2022, an increase of 41.1% year over year. It also posted a gross margin of 17.4% in the third quarter of 2022, from 17.8% year over year.
Even better, Morgan Stanley analyst Stephen Byrd upgraded Bloom Energy to Overweight from Equal Weight with a $35 price target.
Plug Power (PLUG)
Plug Power, like many of its peers, was beaten up over the last year. However, as the hydrogen market explodes, this is one of the top stocks to own.
UBS analyst Manav Gupta also just initiated coverage of the stock with a buy rating, with a $26 price target. “Hydrogen could be a $10 trillion market by 2030, and PLUG aims to be a one-stop shop and market leader in the entire space,” said the analyst, as quoted by Barron’s. “Investors are under appreciating the growth potential as we forecast $5 billion in sales by 2026 (from current $900 million) vs Street at $3.4 billion.” While recent earnings were nothing to write home about, things should improve as the hydrogen story get hotter.
Let’s not forget Plug also has deals with Walmart, Amazon, Home Depot, Nike, Boeing (NYSE:BA), FedEx (NYSE:FDX) and others.
On the date of publication, Ian Cooper did not have (either 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.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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