Hydrogen stocks offer some of the largest opportunities for Motley Fool investors over the next several years. With the entire world moving towards clean energy, hydrogen power is a clean way to produce energy. And investors should want in.
Yet lately, clean energy stocks aren’t performing that well. This comes down to short-term issues that will see some come out clean and others fall behind. Inflation and rising interest rates have put a hold on new acquisitions and growth opportunities for many. But, long term, these three hydrogen stocks should continue to see major growth.
Xebec
Xebec Adsorption (TSX: XBC) is a good place to start as the company has been in the news lately. Among hydrogen stocks, it’s one of those that remains a mixed energy business to create different lines of revenue. This has included carbon-capture spaces, renewable natural gas, and more.
Yet because of inflation and those other issues I mentioned, the company continues to work towards being profitable once more. This should take another few quarters, according to analysts. But investors shouldn’t let those issues get in the way of recent wins.
Xebec saw its backlog double quarter over quarter recently, and once it has its costs and supply chain issues under control, it should become a stellar long-term buy. For now, shares are down 81% in the last year, with a potential upside of 123% identified by analysts.
Ballard Power
Another company that’s seen in headlines for hydrogen stocks is Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP). The fuel cell industry is set to pick up even more momentum in the next few years, and Ballard stock will be a huge part of that. It provides renewable energy power to every type of transportation except personal cars. So, marine carriers, trains, subways will all look to Ballard.
In the near term, there are set to be lower expected sales for the company. Add this to semiconductor chip shortages, supply-chain issues and inflation, and it all hurts the company for now. But with more investment coming from public and private entities, Ballard shouldn’t be down for long.
In fact, Ballard offers insane value with shares down 56%. It currently has a potential upside of 100% as of writing! So, you can pick it up and look forward to crazy growth during a recovery and substantial returns long term.
Loop Energy
Like Ballard Power, Loop Energy (TSX: LPEN) also provides hydrogen fuel cells to vehicles around the world. But for Loop, it’s a bit more specific. It mainly focuses on light commercial vehicles, buses, and medium- to heavy-duty trucks.
For this sector, it’s likely that the increase in hydrogen use will be a slow but steady gain. It won’t be for a couple years that we see a massive move towards use of the product. However, long-term investors can still buy the company for value today and hold onto it for years as a true multi-bagger.
Meanwhile, right now, even with a lower target price, shares should see insane growth. Loop is down 77% in the last year but has a potential upside of 164% as of writing! Among hydrogen stocks, these three are all great opportunities. But with shares so low, Loop could certainly be the one to achieve multi-bagger status first.
