Why Ballard Power Stock Soared 17% on Tuesday

Ballard Power (TSX:BLDP)(NASDAQ:BLDP) stock soared 17%, as clean energy stocks rebounded with oil prices surging past US$100 per barrel.

| More on:
stocks rising

Image source: Getty Images

Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) shares climbed 17% on Tuesday with the renewed interest in clean energy stocks.

What happened?

Ballard Power stocks soared 17%, as clean energy stocks received a boost. This came from the consistently climbing oil and gas prices that have put pressure on clean energy companies to provide further options. Ballard Power, as a provider of large electric vehicles, was able to corner some of that market.

Ballard Power stock was hit over the last year, climbing to all-time highs back in January 2021. Yet, along with other clean energy stocks, it all but crashed. Shares fell to a 52-week low of $10.68 and have since climbed back to where they are now at $15 per share.

So what?

There is volatility still with clean energy stocks just as there are with oil and gas stocks. Analysts believe a fall could come for oil and gas companies, and that could also mean clean energy stocks, too. Renewable energy companies like Ballard Power stock continue to outperform the market, as oil and gas prices increase.

Still, long-term investors should see a rally, and this situation merely proves that. As oil and gas prices increase, more and more countries and companies will seek other options. Oil soared above US$100 per barrel for the first time in years, as the Russian and Ukrainian crisis continues. And what’s more, some analysts believe this could be a long-term scenario.

Now what?

Now may be the time to get back into renewable energy stocks like Ballard Power stock. And Ballard certainly has a strong angle. Instead of providing investment to electric vehicles, you get access to everything else. That includes marine vehicles, trains, trucks — anything you can think of.

As technology becomes better in this area, Ballard Power stock is only going to be a better and better buy. So, for those seeking an option for a long-term scenario, it’s a great time to bounce on this stock.

Shares of Ballard Power stock are up 15% as of writing, with a target price of $27 per share.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Energy Stocks

Utility companies can be good stock investments.
Energy Stocks

Time to Buy TransAlta Stock?

Shares of this utility are up significantly in the past year and more gains could be on the way.

Read more »

Natural gas prices are rising, making energy companies a good investment.
Energy Stocks

Bonterra Energy Stock Has Doubled: Is There More Upside in 2022?

It's been one of the best-performing TSX small-cap energy stocks in 2022, yet shares are cheap today.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

3 Small-Cap TSX Energy Stocks That Doubled This Year

TSX energy stocks at large have beat broader markets this year. But that's nothing compared to these small caps.

Read more »

Oil pumps against sunset
Energy Stocks

TFSA Wealth: Is Suncor Stock Still a Buy?

Suncor stock still looks cheap. Here's why.

Read more »

energy industry
Energy Stocks

1 Oil Company Just Increased Dividends by 12%

Dividend chasers should include an oil bellwether on their buy lists after the company declared the highest dividend increase in…

Read more »

oil tank at night
Energy Stocks

Oil Boom: This 6% Dividend Stock Could Go Higher

Dividend stocks like Enridge (TSX:ENB)(NYSE:ENB) could boost payouts this year.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Income Investors: 3 Energy Stocks That Yield up to 6%

Income investors looking to combat volatility may want to target top dividend-yielding energy stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB).

Read more »

Gas pipelines
Energy Stocks

Passive Income: Why Buy Enbridge (TSX:ENB) and 1 More Energy Stock?

Their solid dividend payment history, high yields, and strong visibility over future cash flows position these companies to enhance shareholders’…

Read more »