We recently published a list of 10 Best Hydrogen Stocks to Buy According to Billionaires. In this article, we are going to take a look at where New Jersey Resources Corporation (NYSE:NJR) stands against other best hydrogen stocks to buy according to billionaires.

As the global push toward clean energy and decarbonization gains momentum, hydrogen stocks are seeing a renewed interest from institutional investors and billionaires. With recent advancements in hydrogen technology, this once speculative energy source is now looking like a solid investment opportunity in the clean-energy sector.

The World Energy Transitions Outlook 2025 highlights that annual deployment of over 1,000 GW of renewable power is needed to stay on a 1.5°C pathway. Hydrogen is expected to play a key role in the decarbonization of end uses and the flexibility of the power system. Investment needs for clean hydrogen and derivatives are projected at $1.1 billion per year to meet global transition requirements. An IEA 2025 Report noted that the global energy demand rose by 2.2% in 2024 –  a faster-than-average rate. This reiterates the fact that the demand for alternate sources of energy is still on the rise.

More investors are looking for long-term growth opportunities in emerging sectors but are restricted by the ever-fluctuating interest rate expectations and evolving energy policies. Within these dynamics, policymakers and corporations are looking at hydrogen adoption more favorably. According to Grand View Research, the industry is projected to hit a staggering $317.39 billion by 2030, expanding at a healthy 9.3% CAGR.

After a challenging 2023, fraught with high interest rates and investor skepticism leading to a sector-wide decline in clean energy stocks, hydrogen stocks have made a recovery in 2024. The Global Hydrogen Index has gained 4.86% in U.S. dollar terms, signaling a comeback. The finalization of hydrogen tax credit guidelines could be seen as a key catalyst. Barron’s has noted that with the 45V tax credit offering up to $3 per kilogram for clean hydrogen, investment in the sector is getting a much-needed boost.

Compared to wind and solar energy, hydrogen has had smoother sailing due to direct government support and increasing private sector interest. In 2025, expanding industrial applications are likely to fuel hydrogen stocks. With research and technological advancements easing production and storage, costs and scalability can be massive improvements. Furthermore, the growing interest in hydrogen infrastructures in the U.S and Europe can bring in growth for the best hydrogen stocks.

Of course, the challenges remain. Despite strong momentum, hydrogen stocks are faced with strong cost competitiveness and regulatory uncertainty. Green hydrogen is still relatively expensive compared to fossil fuels, even with the declining costs. Stricter lifecycle emissions requirements for qualifying hydrogen progens under the 45V tax credit are likely to lead to an adoption slowdown. Also, geopolitical uncertainties pose additional risks within supply chains.

While not entirely free of challenges, there is no denying the rising interest in the industry. Its vast potential has attracted major investors like Bill Gates and Jeff Bezos, who are backing a startup focused on harnessing expertise from the hydrocarbon sector to capitalize on the burgeoning hydrogen market, now termed a “white gold rush” by analysts. In a growing global hydrogen economy, some of the best hydrogen stocks are in a position to create great value.

Our Methodology:

We used Insider Monkey’s exclusive database of billionaire stock holdings to arrive at our list of best hydrogen stocks to buy according to billionaires. Firstly, we have screened the top hydrogen stocks included in notable industry ETFs. We have then selected the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world’s leading hedge funds and companies.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

New Jersey Resources Corporation (NYSE:NJR)

Number of Billionaires: 9

A diversified energy holding company, New Jersey Resources Corporation (NYSE:NJR) provides regulated natural gas distribution, transmission, and storage services alongside unregulated clean energy operations.

In November 2024, the company announced a significant move through its clean energy subsidiary, NJR Clean Energy Ventures (CEV), which sold a 91 MW residential solar portfolio to Spruce Power Holding Corp. for $132.5 million. New Jersey Resources Corporation (NYSE:NJR) expects to record a gain from this sale in the fiscal year 2025, with proceeds directed toward reducing corporate debt and supporting general operations. This strategic divestment underscores NJR’s long-term focus on optimizing capital while remaining committed to renewable energy as a growth driver. President and CEO Steve Westhoven reaffirmed clean energy’s vital role in NJR’s future.

New Jersey Resources Corporation (NYSE:NJR) reported $1.78 billion in revenue over the past year and $491 million in Q1, reflecting a 23.5% quarter-over-quarter increase despite a 7.5% year-over-year decline.

Institutional ownership remains high at over 76%, signaling strong investor confidence. Analyst sentiment is cautious for New Jersey Resources Corporation (NYSE:NJR) but stable, with 33% rating the stock a “Buy” and 67% recommending “Hold.” As the company sharpens its focus on strategic asset management and clean energy investments, it remains one of the best hydrogen stocks to watch in the North American utility space.

Overall, NJR ranks 4th on our list of best hydrogen stocks to buy according to billionaires. While we acknowledge the potential of quantum computing companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NJR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.