In this article, we discuss 5 best hydrogen and fuel cell stocks to buy in 2022. If you want to read about some more hydrogen and fuel cell stocks, go directly to 10 Best Hydrogen and Fuel Cell Stocks to Buy in 2022.
5. Air Products and Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 33
Air Product and Chemicals, Inc. (NYSE:APD) provides atmospheric gasses, process and specialty gasses, equipment, and services worldwide. It is one of the top hydrogen stocks to invest in. Air Products and Chemicals, Inc. (NYSE:APD) recently announced that it plans to spend $500 million to build, own, and operate a 35 metric tons per day facility to produce green liquid hydrogen at a greenfield site in Massena, New York, as well as liquid hydrogen distribution and dispensing operations.
On October 04, investment advisory Citi kept a Neutral rating on Air Products and Chemicals, Inc. (NYSE:APD) stock and lowered price target to $251 from $272. Analyst PJ Juvekar issued the ratings update.
At the end of the second quarter of 2022, 33 hedge funds in the database of Insider Monkey held stakes worth $375 million in Air Product and Chemicals, Inc. (NYSE:APD), compared to 39 in the previous quarter worth $859 million.
In its Q2 2022 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Air Product and Chemicals, Inc. (NYSE:APD) was one of them. Here is what the fund said:
“This quarter we are highlighting Air Products and Chemicals, Inc. (NYSE:APD) as a relative yield example in the Materials sector. APD is a leading global industrial gas supply company and is the largest supplier of hydrogen and helium in the world. It has a sustainable competitive advantage due to long-term customer relationships and contracts, high customer switching costs, and the mission critical nature of its products. Industrial gases are a relatively small fraction of customers’ overall costs but are crucial to ensure uninterrupted production.
Our thesis on APD is that it appears well-positioned for consistent double-digit growth due to a large multi-year capital allocation plan, and the need for accelerating capital expenditures by its customers. It has a $25 billion backlog driven by traditional gas investments along with new growth opportunities like gasification, green hydrogen, and carbon capture. APD’s gasification technologies help improve energy efficiency and independence, which is a key focus for its customers. The company also has a strong management team with a record of expanding margins and exemplary capital allocation (…read more)
4. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 36
Cummins Inc. (NYSE:CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric, and hybrid powertrains, as well as related components worldwide. It is one of the best hydrogen stocks to invest in. Cummins Inc. (NYSE:CMI) recently announced that it had been selected by Atura Power to design and manufacture a 20MW electrolyzer system for its Niagara Hydrogen Centre in Niagara Falls, Ontario. The proton exchange membrane electrolysis system, manufactured at the Mississauga facility of Cummins Inc. (NYSE:CMI), will become the center piece of Atura Power’s Niagara Hydrogen Centre.
On August 18, JPMorgan analyst Tami Zakaria reinstated coverage of Cummins Inc. (NYSE:CMI) stock with a Neutral rating and lowered the price target to $245 from $264, remarking that Cummins Inc. (NYSE:CMI) will be in investment mode over the near and medium term as it develops zero emission solutions for commercial vehicles.
At the end of the second quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $462.8 million in Cummins Inc. (NYSE:CMI), compared to 35 in the preceding quarter worth $584 million.
3. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 39
Shell plc (NYSE:SHEL) operates as an energy and petrochemical company worldwide. It is one of the premier hydrogen stocks to invest in. Shell plc (NYSE:SHEL) recently made its first power sector acquisition in Africa with the purchase of Nigerian renewable energy provider Daystar Power for an undisclosed sum, per news publication Financial Times. The move is part of a larger plan as the firm expands its global renewables portfolio.
On October 07, Cowen analyst Jason Gabelman maintained an Outperform rating on Shell plc (NYSE:SHEL) stock with a $60 price target, stressing that company targets were unchanged despite inclusion of growth previously accounted for in another segment while capex was higher than expected.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Fisher Asset Management is a leading shareholder in Shell plc (NYSE:SHEL), with 20 million shares worth more than $1 billion.
In its Q1 2022 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Shell plc (NYSE:SHEL) was one of them. Here is what the fund said:
“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multi-national companies were at risk of declining sales from increasingly hostile, siloed countries. Shell plc (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”
2. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 44
DuPont de Nemorus, Inc. (NYSE:DD) provides technology-based materials and solutions. It is one of the elite hydrogen stocks to invest in. DuPont de Nemours, Inc. (NYSE:DD) delivered a big earnings beat for Q2 2022, with adjusted EPS up 11% to $0.88 per share. On October 04, Citi analyst PJ Juvekar kept a Buy rating on DuPont de Nemours, Inc. (NYSE:DD) stock and lowered price target to $67 from $75.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm 40 North Management is a leading shareholder in DuPont de Nemorus, Inc. (NYSE:DD), with 5.88 million shares worth more than $326.8 million.
1. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 48
Linde plc (NYSE:LIN) operates as an industrial gas and engineering company. It is one of the most prominent hydrogen stocks to invest in. Linde plc (NYSE:LIN) plans to build a 35MW PEM electrolyzer to produce green hydrogen in Niagara Falls, New York, the chemical company recently announced. The new plant, the largest electrolyzer installed by Linde plc (NYSE:LIN) globally, will more than double the company’s green liquid hydrogen production capacity in the US. Expected to start up by 2025, the facility will use hydroelectric power to produce green liquid hydrogen.
On October 04, Citi analyst PJ Juvekar kept a Buy rating on the Linde plc (NYSE:LIN) stock and lowered the price target to $322 from $346.
At the end of the second quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Linde plc (NYSE:LIN), compared to 54 in the preceding quarter worth $4.8 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Linde plc (NYSE:LIN) was one of them. Here is what the fund said:
“The replacement of demand for Russian gas with green hydrogen positions Linde (NYSE:LIN) well. Green hydrogen, made by using renewable energy to split water into its basic elements, hydrogen and oxygen, and subsequently cleanly burn the hydrogen as fuel, is seen as key to lowering emissions in hard-to-decarbonize industries such as steel and cement, as well as transport. In 2021 Linde announced a long-term agreement to provide European semiconductor maker Infineon (OTCQX:IFNNY) with onsite production and storage of green hydrogen for the company’s site in Villach, Austria. Securing a clean, domestic source of energy for semiconductor manufacturing appears strategic today amid heightened concerns of reliable supply from Taiwan.”
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