Wall Street Favorites: 3 Hydrogen Stocks with Strong Buy Ratings for March 2024

Viktor Zarev

Mon, Mar 11, 2024, 11:19 AM 3 min read

With governments around the world continuing to push for greener energy solutions, new environmental technology opportunities emerge every day. Markets such as electric vehicles, natural gas, solar, wind, and hydrogen energy are all seeing continued growth. Of course, not all sectors of clean energy are progressing at the same rate. In the case of hydrogen, current infrastructure and harvesting hurdles have resulted in slower growth than in other green energy sectors.

Regardless, several reputable companies are investing significant capital to discover the potential of hydrogen as a clean fuel alternative. Investors have the opportunity to get in on a budding and relatively underdeveloped market.

While investing in emerging markets should be approached cautiously, hydrogen still has several relevant applications in case of a crisis. For those looking for strong buy hydrogen stocks, these three companies currently show promise and strong financial projections.

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Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company

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Currently, Linde (NASDAQ:LIN) stands as the lone company capable of covering every step in the hydrogen value chain. From production to processing, and distribution as well as storage, the company does it all. This commitment to vertical integration makes Linde, one of those strong buy hydrogen stocks that investors simply cannot pass up.

Furthermore, the company’s proven expertise in the elemental chemicals industry means it has significant resources to lean on. For investors this this also provides a second layer of stability when investing in Linde. That’s because the company’s revenue centers are well diversified amongst different critical industries, such as agriculture and energy production.

Investors should also keep an eye on Linde’s current ventures with Daimler Trucks to develop liquid hydrogen refueling technology for large vehicles. As such LIN serves as one of the stocks with the greatest potential for the future of the hydrogen market.

Bloom Energy (BE)

BE stock Bloom Energy logo on a building

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Further underscoring the value of its hydrogen electrolysis technologies, Bloom Energy (NYSE:BE) recently entered a research agreement with petroleum giant Shell. By expanding the environmental viability of hydrogen production, Bloom Energy directly invests in resolving a huge hurdle to widespread adoption.

That’s because even though using hydrogen as a fuel does not result in carbon emissions producing it does. Moreover, Bloom Energy currently holds the largest operating electrolysis manufacturing capacity. Thus, its focus on making improvements to omissions will be felt across the hydrogen industry.

Another promising detail, the company reported a record revenue of $1.3 billion in 2023. This improvement in revenue was thanks to its continued growth in product and service revenues. Pair this with a relatively low entry price of around $10 and it starts to sound even more attractive. For investors, this means BE represents one of the best opportunities among strong buy hydrogen stocks.

ITM Power (ITM)

An image of hydrogen fuel silos standing against a blue sky

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Recent news has seen a new push for hydrogen and electrical energy integration in ITM Power’s (OTCMKTS:ITM) product offerings. Currently, the company is experimenting with integrating a standard power supply unit design with its 2MW electrolysis containers. Should ITM Power succeed, it will be able to increase the hydrogen electrolysis system’s reliability while lowering costs.

With a commitment to this increased efficiency, ITM positions itself as a more affordable alternative for hydrogen production and storage. While the company has struggled in the past with managing its financials, recent reports show promising costs and productivity.

Furthermore, though the company is recovering from a price correction, the new Inflation Reduction Act provides opportunities for a comeback. For ITM, the key to returning to the strong price it once commanded will be in capturing budding opportunities. Savvy investors keep an eye on this one, as it has recently been upgraded to moderate buy from most analysts.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.