Ballard Power Stock: Is the Renewable Energy Stock a Buy After New Orders Double?

Renewable energy stock Ballard Power (TSX:BLDP) saw sales double in the last year and expects more great things to come.

| More on:
Utility, wind power

Image source: Getty Images

Shares of Ballard Power (TSX:BLDP) jumped on August 10, as the company announced new orders climbed over 100% during the recent quarter.

The fuel-cell maker creates the power behind buses, trucks, trains and more. It continues to see a major climb in its orders for the cells.

What happened?

Ballard Power stock stated in its earnings release that it indeed did see a net loss of US$30.1 million for the quarter. This came as revenue dropped across its heavy-duty mobility portfolio.

Yet this loss was overshadowed by the fact that the company reported US$25.1 million in new orders for the second quarter. This is a major increase from 2022 levels, when new orders came in at just US$12.3 million.

It was a major shift from last year, when management stated that it was an uncertain macroeconomic environment. Shares started to drop for Ballard Power stock, as it was unclear when the environment might shift.

So what?

It looks like that shift is happening now. The company has made several announcements that have pushed the further adoption of fuel cells by companies. Most recently, Ford and Ballard Power stock announced a deal for its heavy commercial truck brand. It is now working on a fuel cell-powered prototype, and this could set up further use of the company by the major car manufacturer.

The company has also announced other deals this year — and not just in North America but Europe as well. Now, management expects “material new orders for our bus customers over the next 12 months.”

“As a result of the increasingly constructive hydrogen policy landscape and increased market activity in the U.S. and E.U., and given the continued hydrogen and fuel cell policy uncertainties and market delays in China, we are accelerating our work on our ‘local for local’ global manufacturing plan and related future capital allocation plans…We expect to conclude this work in early 2024.”

Randy MacEwan, president and chief executive officer for Ballard Power

Now what?

It looks like the next year could be a strong one for Ballard Power stock, but are the numbers there for investors to dive in? Yes.

Shares of the stock may have jumped after solid earnings, but Ballard Power stock is still down by 44% in the last year. It’s now stable with where it started out in 2023, rising 15% in the last month alone.

So, now might be a great time to pick up Ballard Power stock, with shares at just $6.40 as of writing. Those shares could easily double as the company continues to see major orders come in. Meanwhile, as the company surges past analyst estimates for the quarter, I wouldn’t be surprised to see many analysts increase their potential targets for the stock.

Once that happens, there could be another jump in share price for Ballard stock — one that investors won’t want to miss.

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. The Motley Fool has a disclosure policy.

More on Energy Stocks

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, September 26

Weakness in commodity prices could pressure the TSX index at the open today, as investors closely monitor the important U.S.…

Read more »

Businessperson's Hand Putting Coin In Piggybank
Energy Stocks

This 7 Percent Dividend Stock is My Top Pick for Immediate Income

Looking for a solid dividend stock that can provide an immediate income source? Consider this dividend gem now while its…

Read more »

oil tank at night
Energy Stocks

The Best Canadian Energy Stocks to Buy for Dividends

Even growth investors will want to have these high-yielding energy stocks on their watch lists.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, September 22

With its over 4% week-to-date losses, the TSX Composite seems on track to deliver its worst weekly performance in about…

Read more »

oil and natural gas
Energy Stocks

2 Top Canadian Energy Stocks to Buy Right Now

Here's why Suncor (TSX:SU) and Enbridge (TSX:ENB) are two top energy stocks investors can buy today and hold for a…

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

2 Renewable Energy Stocks That Could Put You in the Green

There's no shortage of renewable energy stocks to add to your portfolio. Here's a duo that will point your portfolio…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

The Massive Rise in Oil Prices and What It Means for Investors

If oil prices remain high, then Suncor Energy (TSX:SU) stock should get a boost.

Read more »

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

Suncor Stock: OPEC Comes to the Rescue!

Suncor Energy (TSX:SU) stock is getting a boost from OPEC's production cuts.

Read more »