3 Best Hydrogen Stocks To Buy

Hydrogen is the key component in the plan to lower power costs across the globe. As more countries look to move away from non-renewable resources, stocks in fuel cells and hydrogen producers are looking better and better. Hydrogen fuel cells can produce electricity without greenhouse gas emissions. The problem is that even though hydrogen is widely available – it's in water – the cost to extract it from water is high.

Once the production cost drops, you'll see growth in the hydrogen market. And likely in one or all of these three companies:

PLUG POWER INC (NASDAQ: PLUG)

Plug Power manufactures fuel cells for use as a power source in forklifts. Its fuel cells replace the need for batteries in forklifts used by companies such as Amazon, Walmart, and Nike. Plug Power is looking to broaden its reach by creating fuel cells for use in heavy equipment that service ports in both the US and Europe as well as cells to power data centers.

Plug Power has 1Q21 revenue of $72 million, up 76%. It is projecting 2Q21 gross revenue of up to $120 million.

BALLARD POWER SYSTEMS INC (NASDAQ: BLDP)

Ballard is another company in the heavy vehicle fuel cell business. Ballard's cells power busses, trains, mining equipment, and are used as a backup for critical infrastructure such as radio towers. Ballard has also entered into an agreement with Audi to supply automotive fuel cells.

Ballard's 1Q21 revenue was $17.6 million, which was 26% below that of 1Q20. The company says the 2020 revenue was spiked by an unusually large first-quarter shipment and that the bulk of its business comes in the third and fourth quarters.

BLOOM ENERGY CORP (NYSE: BE)

Bloom manufacturers and sells solid oxide fuel cells, which are used to create electricity on-site. Bloom's fuel cells are fuel-flexible, which means they can use hydrogen, biogas, or natural gas to make electricity. The cells are low in emissions because they use an electrochemical process to generate electricity rather than combustion.

Bloom's 1Q21 revenue is $194 million, which is 23.8% higher year-over-year. Unlike some other hydrogen stocks, Bloom's performance is encouraging to analysts and investors.