10 Best Hydrogen and Fuel Cell Stocks to Buy

4. Air Products and Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 51

Air Products and Chemicals, Inc. (NYSE:APD), headquartered in Pennsylvania, the U.S., produces atmospheric gases, process gases, and specialty gases. Thus, it also produces hydrogen and makes equipment for air separation and purification, and liquid hydrogen storage and transport.

The stock has been experiencing a dip in the last year, falling 15%, amidst the slow recovery of China from the COVID pandemic and the stagnant economy of Europe – the markets the company depends on greatly. The financial performance of the company took a hit from the same factor in Q1 2024 as well, wherein the company lowered its full-year EPS guidance from $12.97 to $12.35. This was followed up by a downtick of 12% in the company’s revenue in Q2 2024. However wary this might make the investors, it’s a matter of time before the company will be back to rolling out revenues, as the company is taking essential steps to restructure its operational plans.

The company has recently sold off its liquefied natural gas process technology and equipment business to Honeywell in July 2024 through a $1.81 billion all-in-cash transaction, in the pursuit of a greater focus on cleaner energy transition through hydrogen business at a larger scale, targeting decarbonization at industrial level and in relation to the heavy-duty transportation industry.

Accordingly, Neom’s green hydrogen project, which is a joint venture of ACWA Power, Air Products, and NEOM, and has a proposed capacity to produce up to 600 tons per day of carbon-free hydrogen, is striding rapidly in 2024, after having received $8.4 billion funding last year. The operations are set to take place in 2026, with substantial progress going to take place in the project’s construction in 2024.

This development showcases the company’s greater focus on the hydrogen market and means exciting times are around the corner for the company. It’s under the radar of the analysts as they see the price of the stock jumping 12% from its current price of $256 to $286.9. As such, the tally of hedge fund holders of the stock has increased from 42 in Q4 2023 to 51 in Q1 2024, taking the aggregate investment to $830.4 million, explaining how the stock makes it to our list of 10 Best Hydrogen and Fuel Cell Stocks to Buy.