While turning $5,000 into $1 million is an extremely tall order – a 200-bagger if we’re counting – should such a fantastical return materialize, the top hydrogen stocks to buy have a better shot of facilitating this profit magnitude than many other sectors. It just comes down to pure relevance.
According to MarketsandMarkets, the hydrogen generation sector reached a valuation of $160 billion last year. By 2027, the segment could hit $263.5 billion, growing at a compound annual growth rate (CAGR) of 10.5% from 2022 to 2027. That’s the baseline argument for hydrogen stocks with high returns.
Of course, the immediate objection is as follows: a CAGR of 10.5% hardly aligns with a 200-bagger. That’s true. However, keep in mind that the cost of producing hydrogen from renewable electricity could decline by 30% by 2030, according to the International Energy Agency (IEA). In other words, technological synergies could drive the case for the best hydrogen stocks for investment.
Granted, this arena presents extraordinary risks. Still, if you want to roll the dice, these are the millionaire-maker hydrogen stocks to consider.
Bloom Energy (BE)
A manufacturer of solid oxide fuel cells that produce electricity on-site, Bloom Energy (NYSE:BE) ranks among the more popular ideas for top hydrogen stocks to buy. Specifically, its AlwaysON microgrid platform draws particular interest because it helps businesses and communities navigate unplanned power outages. Basically, the system kicks in when the main grid shuts down, thus offering both social and economic benefits.
Moving forward, the idea of microgrids may take off. As a Forbes article stated earlier this year, the U.S. electric grid is weakening. That’s evident in large part because of electric shortages, leading to frequent brownouts and blackouts. With all this talk about the electrification of mobility, the current infrastructure can’t handle such a transition. Therefore, BE ranks among the high-potential hydrogen stocks.
Unsurprisingly, analysts are optimistic about BE, pegging shares a consensus moderate buy. On average, their price target lands at $24.92, implying 40% upside potential. Therefore, it deserves consideration for hydrogen stocks with high returns.
Plug Power (PLUG)
A frequently discussed idea for top hydrogen stocks to buy, Plug Power (NASDAQ:PLUG) focuses on the development of hydrogen fuel cell systems. These systems replace conventional batteries in equipment powered by electricity. One of the favorites among meme traders back during the first year of the pandemic, PLUG has come back down to earth. Still, the relative discount has many speculators thinking big dreams.
It wouldn’t be out of the question for PLUG to once again take the mantle of millionaire-maker hydrogen stocks. Last year, The Wall Street Journal mentioned that Plug Power was betting aggressively on green-hydrogen production. According to Precedence Research, the global green hydrogen market size reached $4.02 billion in 2022. By 2023, experts project that the sector could command a valuation of $331.98 billion.
So yeah, if the stars align just right, PLUG could be one of the best hydrogen stocks for investment. Analysts are bullish, rating shares a moderate buy with an $18.68 price target. This forecast implies upside potential of almost 52%.
Fusion Fuel Green (HTOO)
An intriguing but extraordinarily risky idea among top hydrogen stocks to buy, Fusion Fuel Green (NASDAQ:HTOO) conducts research regarding affordable green hydrogen. Per its website, Fusion Fuel seeks to generate green hydrogen through only water and the energy from the sun. To be fair, most investors will probably view the marketing pitch as almost science fiction.
Just to be upfront with my readers, this perception has hurt HTOO. Since the beginning of this year, shares tumbled almost 52%. And in the trailing one-year period, HTOO gave up nearly 68% of its equity value. As with other aspirational enterprises, a main concern for Fusion is that it’s pre-revenue. So, you must have faith in the underlying project.
Interestingly, analysts peg shares as a moderate buy though you don’t want to get too excited. We’re talking one buy, one hold, that’s it. However, the average price target between the two experts stands at $9.50. That’s upside potential of 328%, which may be difficult for speculators to ignore.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.