Are you hoping to score big returns with Air Canada (TSX:AC) stock? Or do you think about the many seemingly insurmountable problems that it is facing and wish for something better?
These days, Air Canada stock has become a nightmare story for its shareholders. The stock has plummeted to well below $20, and the future of airline travel has been hit a devastating blow. We are not sure when and if the industry will recover to anywhere near what it once was. And we are not sure how Air Canada will survive given the amount of money it is bleeding every day.
So, while all the talk is about Air Canada stock, I wonder if we would be better served by focusing on a top stock that is the second best-performing stock on the TSX in 2020. Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) stock has soared 191% so far in 2020!
Let’s explore this leading global provider of innovative clean energy and fuel cell solutions. How has Ballard Power stock become a top-performing stock, and what does the future have in store?
$5,000 invested in Ballard Power stock two years ago would be worth over $20,000 today
If you’re thinking that past returns do not guarantee future returns, and if you’re wondering whether you have missed the boat with Ballard, consider the following: Ballard Power stock is just now finally beginning to reflect the real and enormous opportunity ahead. Fuel cells are emerging as a leading fuel source in the race toward clean energy.
Countries and companies have been making huge investments into fuel cells, and for good reason. Fuel cells have been gaining acceptance due to their exceptional performance. Fuel cells have a long range, fast fill-ups, and zero emissions. They are clean. Ballard Power and the fuel cell is front and centre in the race to clean up this world.
While the competitive landscape is active, Ballard has a strong lead. The company estimates that it holds close to 80% market share of fuel cell buses and trucks currently deployed globally.
By contrast, Air Canada is facing plunging demand today due to the pandemic. And weaker demand is here to stay for the foreseeable future. On top of this, Air Canada is facing rising costs, as the company adjusts the flying experience to take into account virus safety protocols.
Air Canada stock faces grave problems, while Ballard Power stock races toward fuel cell acceptance and adoption
For investors considering buying Air Canada stock, they must make peace with many real risks. It is a highly uncertain investment in an industry that has been brought to its knees. The odds seem stacked against Air Canada.
Ballard Power, however, is seeing great positive momentum. A very interesting white paper was recently published by consulting giant Deloitte. It illustrates the belief that it will soon be cheaper to run a fuel cell electric vehicle than a battery electric vehicle. This will happen for certain heavy-duty applications such as trucks, buses, and trains. It illustrates that costs will fall by more than 50% in fewer than 10 years and that fuel cells will be less expensive by 2027. They will no longer need government subsidies.
According to multiple estimates that have been released by various research organizations, including U.S. firm Stratistics Market Research Consulting, the global fuel cell market was $476 million in 2017. It is forecast to rise to more than $50 billion by 2026. This is one of many forecasts that are calling for a fuel cell market size north of $30 billion by the mid-2020s.
Fuel cell orders and deployments are rising significantly in key geographies. There are currently 18,000 fuel cell passenger cars in operation, supported by approximately 400 hydrogen fueling stations. And Ballard Power is capturing a significant share of this market.
Foolish bottom line
Ballard Power stock is a top stock in 2020. While Air Canada stock has been struggling to remain above water in this pandemic, Ballard has continued to advance its business. The business of clean fuel choices is a booming one, and Ballard’s fuel cells are leading the way.