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The 3 Hottest Hydrogen Stocks to Own for 2023

The Dec. 13 news out of the Lawrence Livermore National Laboratory that researchers produced more energy from hydrogen fusion than it used is a major breakthrough. The breakthrough renews hope that we will one day have nearly limitless, clean, carbon-free energy available. 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 an opportune time, as the sector has fallen through 2022. One indicator, the Global X Hydrogen Exchange-Traded Fund (ETF) (NASDAQ:HYDR), has lost more than 40% of its value year-to-date.

Let’s look at 3 hydrogen stocks to own in 2023 as the narrative surrounding hydrogen strengthens. 

BLDP Ballard Power Systems $4.76
FCEL FuelCell Energy $2.51
BE Bloom Energy $19.28

Ballard Power Systems (BLDP)

Source: Pavel Kapysh / Shutterstock.com

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

The recent news makes Ballard Power Systems a hydrogen stock to own and it will undoubtedly lead investors to learn more about the company’s developments. Among them are Ballard Power System’s partnerships with leading firms in the space. It is working with ABB (NYSE:ABB) to commercialize hydrogen-powered fuel cells for ships. Further, the company has had some success in testing liquid hydrogen fuel cells with Chart Industries (NYSE:GTLS). 

A month ago the company announced an order for 25 hydrogen fuel cell engines to be installed in buses deployed in Poland’s public transport systems. Ballard Power Systems’ revenues fell 15% year-over-year in Q3 to $21.3 million, but it has a chance to turn recent headlines into greater orders moving forward. 

FuelCell Energy (FCEL)

Source: Bern James / Shutterstock.com

FuelCell Energy (NASDAQ:FCEL) stock should fare well in 2023 and into the future, because the company has a strong voice in dictating the future of renewable energy in the U.S. 

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

The company provides fuel cell platforms that are installed over 95 sites and 3 continents. Additionally, investors will be happy to know that FuelCell Energy is growing its revenue base rapidly. In the entirety of fiscal year 2021, the company recorded $69.6 million in revenues. That figure swelled to $91.3 million through July 31 of 2022.

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

Bloom Energy (BE)

Source: Sundry Photography / Shutterstock

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

Investors need only look into the firm’s Q3 earnings report to understand how well it is doing. Bloom Energy reported record Q3 revenue of $292.3 million. That represented a 41.1% increase over the same period a year prior. Those strong results allowed the company to reaffirm its previous full-year 2022 revenue outlook between $1.1 billion to $1.15 billion. 

Bloom Energy is still operating in the red with a net loss of $57.1 million in Q3. However, it was only $5 million worse than the $52.37 million net loss a year earlier. Given how rapidly revenues increased, it’s arguable that it doesn’t matter. 

Bloom Energy’s cash and cash equivalents position increased from $396 million to $492 million in Q3 on a YoY basis. That means it has more liquidity to invest as it sees fit. 

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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