10 Best Hydrogen and Fuel Cell Stocks to Buy

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 62

Chevron Corporation (NYSE:CVX) is engaged in the markets of oil and natural gas, fuels, lubricants, chemicals, and additives.

This stock is also one of the best dividend growth stocks to buy according to hedge funds, as it has continuously been giving out dividends for 40 years while recording a dividend growth of 5.4% in the last three years. The company’s payout ratio exceeds the industry mean of 45%, equaling an impressive 56%. The company has given a full year’s production guidance according to which it expects $80/BBL Brent in 2024 while expecting an increase in production of somewhere between 4% to 7%. However, the analysts see the company’s expectations quite conservatively as the supply cuts are expected and will drive the prices up. Moreover, the approval came from the shareholders of Hess Corporation regarding the acquisition of the company by Chevron for $53 billion, which would mean further expansion of Chevron in Guyana.

Capitalizing on its 29-MW solar facility in California’s San Joaquin Valley, the company announced in February 2024 that it’s also going to produce hydrogen from the facility, the production equaling 2.2 tons per day. Moreover, the company has also taken Accelera on board for the supply of a 5-MW electrolyzer system for the company’s hydrogen production facility in a California oil field which will fuel the company’s freight trucks onsite. The announcement was made in April 2024.

Thus, with favorable prices in the future and higher production, along with the company’s leap towards the hydrogen business, 15 analysts have set a price target of $ 184.33, as compared to the current stock price of $154; This is an impressive upside of 19.6%. Moreover, 62 hedge fund investors hold a stake in the stock, worth $23.3 billion, also meaning that the stock makes it to our list of 10 Best Hydrogen and Fuel Cell Stocks to Buy.

However, massive fluctuation in the oil and gas prices is one factor that investors must keep an eye out on, and on any impact that those price fluctuations could have on the stock.