In 2020, protecting the environment is of the utmost importance to people around the world.  Which is why fuel cell technology has become more widely known.

Fuel cells generate electricity through an electrochemical reaction.  They emit water rather than pollutants because there is no burning of fuel, like in combustion.

Currently, fuel cells are used to power homes, hospitals, stores and data centers.  And they can be used in vehicles, like cars, trucks, buses and trains.   

Here are 3 fuel cell stocks to keep on your radar as the world transitions away from traditional sources of power:

Plug Power (PLUG)

Alternative sources of energy are becoming that much more important with each passing day. PLUG provides such energy systems for individuals and businesses throughout the world. PLUG designs, develops, makes and sells hydrogen fuel cell systems.

PLUG has the potential to emerge as a trailblazer in the fuel cell/battery hybrid tech space. Its fuel cell products are used in place of the outdated lead-acid batteries used in trucks and other vehicles.

The POWR Ratings have PLUG ranked 18th of 57 stocks in the Industrial – Equipment space with an A Trade Grade, an A Peer Grade and a B Buy & Hold Grade. PLUG price returns are in the green for every period of time. In fact the company’s one-year, three-year and five-year price returns are all above 100%. The average analyst price target for this stock is $6.40, meaning there is about 15% upside.

Bloom Energy (BE)

If a company were to obtain a mere 5% of the renewable energy market, it would amass nearly $9 billion. This might seem like a pie-in-the-sky scenario yet it is quite possible for BE. BE’s serviceable addressable market is approaching $200 billion. This electricity specialist currently holds half of one percent of the market yet its piece of the pie is growing around 45% on a year-over-year basis.

Aside from electricity, BE also makes money from three other revenue streams: service, installation and product. The POWR Ratings on BE are decent: a B Industry Rank, a solid Trade Grade and Peer Grade, a top-half ranking in the Industrial – Equipment space and positive price returns. BE has a six-month price return of 37.22% and a three-month price return of 61.39%.

The analysts’ average price target for BE is $18.50, meaning there is more than 100% upside. The high forecast for the stock is $20.

FuelCell Energy (FCEL)

Clean, reliable and efficient electricity is the name of the game as we transition away from gas-powered vehicles to green vehicles. FCEL just might play an important role in the electric vehicle revolution. FCEL creates and markets clean power plants with double the traditional fossil fuel plant’s efficiency.

However, FCEL plants do not generate air pollution. This green feat is made possible with the use of renewable biogas. The POWR Ratings have FCEL rated as Neutral, highlighted by a B Trade Grade and a one-year price return of nearly 1,000%.

FCEL reported a larger loss than expected in the most recent quarter yet its revenues surpassed estimates. Though FCEL is currently in the red, it appears as though the company will be profitable within two years or less.

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PLUG shares . Year-to-date, PLUG has gained 76.27%, versus a -2.92% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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