5 Best Hydrogen and Fuel Cell Stocks To Buy For 2024

In this article, we discuss 5 best hydrogen and fuel cell stocks to buy for 2024. If you want to read our discussion on the hydrogen and fuel cell market, head over to 10 Best Hydrogen and Fuel Cell Stocks To Buy For 2024. 

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

Number of Hedge Fund Holders: 43

Air Products and Chemicals, Inc. (NYSE:APD) is a global provider of atmospheric gases, process and specialty gases, and related services, catering to diverse industries, including refining, manufacturing, electronics, and healthcare. Air Products and Chemicals, Inc. (NYSE:APD) also designs and manufactures equipment for air separation, hydrocarbon recovery, natural gas liquefaction, and the transport and storage of liquid helium and hydrogen. It is one of the best hydrogen stocks to invest in. 

On November 15, Air Products and Chemicals, Inc. (NYSE:APD) declared a $1.75 per share quarterly dividend, in line with previous. The dividend is distributable on February 12, 2024 to shareholders of record on January 2. 

According to Insider Monkey’s third quarter database, Air Products and Chemicals, Inc. (NYSE:APD) was part of 43 hedge fund portfolios, same as the prior quarter. Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 988,701 shares worth $280 million. 

ClearBridge Large Cap Value Strategy made the following comment about Air Products and Chemicals, Inc. (NYSE:APD) in its Q4 2022 investor letter:

“In the materials sector, Air Products and Chemicals, Inc. (NYSE:APD)’s ability to recover higher energy costs, particularly in Europe as it continues to execute on its growth projects, has helped it to generate a positive return for the year and made it a strong contributor. The capital APD is deploying into hydrogen products globally is finally getting noticed as Europe is looking to diversify away from Russian natural gas and the Inflation Reduction Act (IRA) benefits domestic investments in renewables, such as APD’s $4.5 billion blue hydrogen project in Louisiana and its $4 billion green hydrogen production facility in Texas. APD is also teaming up with World Energy to build a $2.5 billion sustainable aviation fuel production facility in Southern California, a project that should also benefit from the IRA.”

4. Shell plc (NYSE:SHEL)

Number of Hedge Fund Holders: 49

Shell plc (NYSE:SHEL), an energy and petrochemical company, operates worldwide. Shell plc (NYSE:SHEL) engages in the exploration, extraction, and selling of crude oil, natural gas, natural gas liquids, low-carbon fuels, lubricants, bitumen, and petrochemicals. The company also generates electricity through renewable resources, sells hydrogen, and provides electric vehicle charging services. It is one of the top hydrogen stocks to monitor. 

On November 2, Shell plc (NYSE:SHEL) declared a quarterly dividend of $0.662 per American depository share, in line with previous. The dividend is payable on December 20, to shareholders of record as of November 17. The board also initiated a $3.5 billion share repurchase initiative spanning approximately three months. 

According to Insider Monkey’s third quarter database, 49 hedge funds were bullish on Shell plc (NYSE:SHEL), compared to 43 funds in the last quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with nearly 17 million shares worth over $1 billion. 

Third Point Management made the following comment about Shell plc (NYSE:SHEL) in its second quarter 2023 investor letter:

“We initiated a position in Shell plc (NYSE:SHEL) in the summer of 2021 and highlighted the company’s significant discount to intrinsic value as well as to US-listed peers after decades of poor performance. While shares have performed well since we initiated the investment, the company still trades at a staggering discount to intrinsic value and represents a compelling investment at current levels. We initially argued (and still believe) that the fastest path to improved performance and better valuation would be a separation of Shell’s business units to better attract shareholders and improve accountability, the latter of which was essential when the company was in the hands of executives who had demonstrated virtually no focus on shareholder value creation.

The most important change at Shell over the past two years has been the upgrade in the management team, with the appointments of Wael Sawan as CEO and Sinead Gorman as CFO. They have demonstrated an unwavering commitment to shareholder value, capital discipline, and improved returns. At their recent analyst day, Mr. Sawan stated “underpinning all that we do will be a ruthless focus on performance, discipline, and simplification.” It was the third time they used the term “ruthless” in their presentation, sending a strong message to shareholders…” (Click here to read the full text)

3. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 71

Linde plc (NASDAQ:LIN) is an industrial gas company with operations across North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company provides atmospheric gases like oxygen, nitrogen, argon, and rare gases, as well as process gases including carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It is one of the best hydrogen stocks to monitor. 

On December 5, Linde (NASDAQ: LIN) announced an expansion of its liquid hydrogen production capacity at its McIntosh, Alabama facility. The upgraded facility is now capable of producing up to 30 tons per day of liquid hydrogen for the local merchant market. This $90 million expansion is aimed at meeting the growing demand for hydrogen in different industries, including manufacturing and electronics. The move is part of Linde plc (NASDAQ:LIN)’s strategy to enhance its hydrogen business in the southeast U.S. and strengthen its network density in the region. 

According to Insider Monkey’s third quarter database, 71 hedge funds were bullish on Linde plc (NASDAQ:LIN), compared to 70 funds in the preceding quarter. 

Here is what Madison Funds had to say about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:

“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 72

Chevron Corporation (NYSE:CVX) is actively involved in hydrogen production, generating around 1 million tonnes annually through its traditional business, mainly for refining operations. The company aims to expand its hydrogen business by leveraging existing refineries, distribution capabilities, sales channels, and brands to supply and sell hydrogen to customers. Additionally, Chevron Corporation (NYSE:CVX) is constructing hydrogen fueling stations at select locations to support the growing demand for hydrogen. It is one of the top hydrogen stocks to watch. 

On December 6, Chevron Corporation (NYSE:CVX) announced that it expects a year-over-year increase of approximately 14% in total capital spending for the fiscal year 2024. While Chevron initially aimed to maintain its capital expenditure budget within the $14 billion to $16 billion range until 2027, the company now foresees an annual capital spending range of $19 billion to $22 billion following the completion of its proposed acquisition of Hess next year.

According to Insider Monkey’s third quarter database, 72 hedge funds held stakes in Chevron Corporation (NYSE:CVX), compared to 73 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 110.2 million shares worth $18.6 billion. 

Carillon Eagle Mid Cap Growth Fund made the following comment about Chevron Corporation (NYSE:CVX) in its Q3 2023 investor letter:

“Chevron Corporation (NYSE:CVX) traded higher along with oil prices that increased throughout the third quarter. Oil prices rose about 30% following ongoing production cuts by major global producers (Saudi Arabia and Russia) and slowing output growth from U.S. shale energy producers.”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 79

Exxon Mobil Corporation (NYSE:XOM) engages in the production, trading, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized products. The company is actively exploring opportunities in lower-emission sectors, including carbon capture and storage, hydrogen, and the development of lower-emission fuels. Exxon Mobil Corporation (NYSE:XOM) has allocated $7 billion for projects related to hydrogen, carbon capture, and biofuels from 2022 to 2027. A decision on the final investment for the hydrogen project is anticipated by 2024. It is one of the best hydrogen stocks to monitor. 

On December 6, Exxon Mobil Corporation (NYSE:XOM) announced its intention to increase its annual share repurchases to $20 billion, beginning upon the completion of the Pioneer Natural Resources acquisition early next year and extending through 2025. 

According to Insider Monkey’s third quarter database, 79 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), compared to 71 funds in the preceding quarter. 

Here is what First Eagle Investments had to say about Exxon Mobil Corporation (NYSE:XOM) in its second-quarter 2022 investor letter:

“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

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