Bloom Energy-Bright Future for Clean Hydrogen Stocks? Analysts Are Watching

Industrial Sector Performance - Industrials stocks have surged over the past year, driven by government spending initiatives such as the Inflation Reduction Act and the CHIPS and Science Act, with the Industrial Select Sector SPDR Fund (XLI) up more than 36% [1] Clean Hydrogen Companies' Struggles - Clean hydrogen companies, focused on sustainable energy using hydrogen, have underperformed compared to the broader industrials sector, with many stocks declining over the past year [2] - McKinsey reduced its U.S. green hydrogen forecast for 2030 by 70%, citing the hydrogen market as broadly uninvestable and national production targets as unattainable [2] Plug Power Inc (PLUG) - Plug Power, a hydrogen fuel cell leader, has seen its stock price drop by almost 63% in the last year, forcing the company to halt a $290-million New York project due to a cash crunch [4] - Despite the decline, analysts remain optimistic, with a consensus price target of$ 5.01, representing a 135% upside from current levels, though still far below its all-time high of nearly $70 [5] FuelCell Energy Inc (FCEL) - FuelCell Energy, another clean hydrogen firm, has seen its stock price plummet by more than 68% in the last year, trading at just 34 cents per share, as the company struggles to turn a profit or scale production [6] - The company recently signed a memorandum of understanding with Korea Hydro & Nuclear Power Co, potentially leveraging Korea Hydro's power plant infrastructure to pivot toward sustainable energy operations in Asia [7] - Analysts assign a consensus price target of 88 cents per share, a 150% upside, but maintain a Hold rating [8] Bloom Energy Corp (BE) - Bloom Energy, which uses solid oxide fuel cell technology, reported$ 336 million in revenue for the second quarter, an 11% increase year-over-year, while also improving gross margins [9] - The company has secured new contracts with data center users like CoreWeave, positioning itself favorably in the AI and cloud spaces, with analysts seeing 58% upside potential and nine out of 19 analysts rating it a Buy [9] - Bloom Energy's stock has declined by only 8% in the last year, outperforming other clean hydrogen companies [9] Future Outlook for Clean Hydrogen - As businesses increasingly rely on clean energy, hydrogen firms could benefit from a large-scale shift, though many may struggle without a clear path to growing revenue, margins, and profitability [10] - Bloom Energy stands out among clean hydrogen companies due to its strong positioning in the fast-growing AI and cloud sectors [10]