10 Best Hydrogen and Fuel Cell Stocks to Buy

2. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 65

Linde plc (NASDAQ:LIN), a global industrial gas company, specializes in hydrogen solutions. With its operations spanning across the world, Linde offers gases including hydrogen, oxygen, nitrogen, and argon, and also offers hydrogen and other process plants, targeting industrial sectors like healthcare, energy, manufacturing, and electronics.

The company recorded a revenue of $8.1 billion, which is a decrease of 1% from last year’s same period, amidst lower sales volumes recorded because of below-par production in the quarter. Despite this, the operating profit shot up 6% in the quarter to $2.3 billion, resulting in an operating profit margin of 28.9, up by 200 basis points – which was a result of efficient price and cost management. EPS on the other hand jumped 10% to $3.75 per share on the back of a reduced share count which occurred due to $1 billion worth of share repurchases in the quarter, showcasing the company’s healthy free cash flow position.

For the year 2024, the company has given an EPS guidance expecting EPS to lie somewhere between $15.3 to $15.6 per share, which would translate to 8% to 10% growth from the previous year. This company expects on the back of a healthy backlog worth $5 billion and continued developments taking place.

In April 2024, the company announced the initiation of a second electrolyzer in Brazil next to the company’s air separation facility in São Paulo. The plant would become operational in 2025 and would be responsible for the supply of green hydrogen to glass-making company, Cebrace. Furthermore, the company is putting in money worth $150 million to build, own, and operate an air separation facility in northern Sweden, through which it would help H2 Green Steel’s integrated plant reduce its carbon emissions by 95% through the supply of oxygen, nitrogen and argon. The plant is expected to be off and running in 2026.

As a result of its promising earnings growth trajectory, effective pricing, and robust productivity, the stock has grown 15% in the past year, and 8.3% from the year’s start. Looking forward, the analysts believe in the company’s continued growth and developments in the decarbonization initiatives, and are eyeing a target price of $470, which would translate to an upside potential of 6%. As such, hedge fund holders have invested their money worth $3.8 billion, with Scopus Asset Management investing the biggest chunk, worth $29 million. Thus, the stock bags a place in our list of 10 Best Hydrogen and Fuel Cell Stocks to Buy.