12 Best Hydrogen and Fuel Cell Stocks to Buy for 2025

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

Number of Hedge Fund Holders: 45

Air Products and Chemicals, Inc. (NYSE:APD) is a global leader in industrial gases and liquefied natural gas (LNG) processing technology and equipment. It ranks among the largest suppliers of merchant hydrogen and is a pioneer in hydrogen fuel infrastructure, operating over 100 hydrogen plants with a combined production capacity of 7 million kilograms daily.

The company is committed to addressing global energy and environmental challenges through gasification, carbon capture, and clean hydrogen initiatives. Among its notable projects is a $4.5 billion investment in Louisiana to construct the world’s largest blue hydrogen facility. Scheduled for completion in 2026, the project aims to capture and permanently store over 5 million metric tons of carbon dioxide annually.

In its Q4 2024 results, Air Products and Chemicals, Inc. (NYSE:APD) reported a 13% year-over-year increase in adjusted earnings per share, aligning with its guidance. For fiscal year 2025, the company forecasts EPS growth of 6% to 9%, even after divesting its LNG business to Honeywell. Following these results, Mizuho reaffirmed an Outperform rating and raised its price target to $385 from $360. Similarly, BMO Capital maintained an Outperform rating, increasing its target to $350 from $323, citing the company’s strong financial performance.

ClearBridge Large Cap Value Strategy stated the following regarding Air Products and Chemicals, Inc. (NYSE:APD) in its Q3 2024 investor letter:

“Air Products and Chemicals, Inc. (NYSE:APD) has also made strong contributions recently, delivering operationally and announcing a major offtake agreement for its NEOM green hydrogen project in June. Strong fundamentals for APD are shining through a soft Chinese industrial economy, and it continues to shore up the strength of its core industrial gases franchise, committing to not invest additional capital on big projects until they soak up existing capacity, putting a management structure in place to allow for more accountability and announcing board-initiated succession planning that will help built investor confidence for the future. The company is also tightening up its operational focus by divesting non-core assets and streamlining operations.”