Cycling Through This Week’s Winning Hydrogen Stocks

Hydrogen Stocks

In recent days, we’ve seen some sharp selloffs in the market. There was a nice bounce back on Thursday. But we’re not out of the woods just yet. Ongoing concerns about inflation have rattled the technology sector. We’ve seen some stock prices get cut in half after reaching highs just a few weeks ago. Some hydrogen companies’ stocks have also taken a few hits.

These include Ballard Power (BLDP), Plug Power (PLUG), or Nel ASA (NLLSF). But there have been some positive moves for other solid hydrogen investments.

I’m specifically talking about Cummins and CNH, which are on the recommendation list of my German stock market service “Der Depot-Optimierer”. Let me talk a little more about these companies.

Hydrogen Stock 1: Cummins, Sales prognosis up

First up is American engine manufacturer Cummins (CMI). The company hydrogen fuel cells as part of its commitment to alternative energy and fuels. Recently, it reported strong quarterly numbers and raised its full-year forecast.

About the figures: Net income rose significantly to $603 million, or $4.07 per share, compared with $511 million and $3.41 per share in the previous year. The U.S. company’s sales also increased in all segments.

“Cummins is in a strong position to continue to invest in future growth, provide new technologies for customers and return cash to shareholders,” said CEO Tom Linebarger.

The company’s sales growth forecast for the current year has been revised upward significantly from 20% to 24% from 8% to 12%. There is more robust demand in all markets, the company said. This is definitely a company that should be added to your Watch List in the future.

Hydrogen Stock 2: CNH, Strong quarterly figures

A few days ago, CNH (CNHI), the Dutch-British commercial vehicle specialist and hydrogen profiteer, also reported strong figures for the 1st quarter of the current fiscal year and raised its forecast for the entire year. The company increased net sales by 40% year-on-year to $7 billion.

This was due to higher volumes driven by solid demand, particularly in agriculture and commercial and specialty vehicles.

Adjusted operating profit (adjusted EBIT) from industrial activities was $545 million in the 1st quarter, compared with a loss of $148 million in the year-earlier period.

CNH management expects strong demand to continue for the remainder of the year in all regions and segments. Full-year sales are now forecast to increase 14% to 18%. Previously, management had expected sales to increase by only 8% to 12%.

There are a lot of hydrogen stocks that are still struggling across the industry. There have been more sellers than buyers for firms like Plug.

If you’re looking to take part in the trend, it’s important to consider a basket of various stocks.

Some will be more volatile than others. In addition, the more volatile ones will require longer-term thresholds and greater risk tolerance. You can also consider the two Hydrogen ETFs that I covered last weekend. Both provide broad access to this critical long-term trend.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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