Hydrogen Stock Trends in 2023: Nel ASA and Plug Power
Post-Hydrogen Rally: Anticipating Future Developments for Nel ASA and Plug Power
Kickstarting the year, Nel ASA and Plug Power have shown impressive gains, leaving some investors wondering if this is the time to jump in or cash out. Here's a lowdown on what might happen next.
Nel ASA Stock
Nel ASA's stock prices have risen 16% this year, while defending the essential 200-day line. Chart-wise, it looks promising, but fundamentally, it isn't all rosy. Profit per share is expected to remain negative at 3.8 cents in 2023, with no P/E ratio or dividend yield. Yet, revenue is projected to surge from 80.52 million euros to 141.7 million euros. Analysts, however, remain cautious: eight recommend buying, ten holding, and eleven selling. The average target price of 12.79 Norwegian Krone proposes a 21.2% drop below the current price, indicating potential for investors to take profits or stick around for the long haul.
Plug Power Stock
In stark contrast, Plug Power looks promising for American investors. The stock is still struggling chart-wise and below the 200-day line, but it has gained 41% already this year. Analysts are optimistic: twenty-three recommend buying, nine holding, and none selling. The average target price of $27.50 offers a potential of 57.7%. Revenue is forecasted to escalate from 761 million euros to 1.27 billion euros, and the loss per share is set to decrease from 94 cents to 51 cents. Risk-tolerant investors can hop aboard the Plug Power train with a pullback at the 200-day line serving as an opportunity to hop on.
Both Nel ASA and Plug Power are part of the BÖRSE ONLINE Green Future Index.
Disclaimer:
The displayed securities' prices are derived from an index developed by Börsenmedien AG, which holds the rights to it. Börsenmedien AG has a cooperation agreement with the issuer of the securities, granting them a license to use the index. Börsenmedien AG receives remuneration from the issuer in this regard.
Background Details:
Nel ASA's Market Position:- Current Stock Price: Approximately NOK 2.22 on Oslo Bors.- 52 Week High/Low: Hit a high of NOK 8.70 and a low of NOK 1.95.- Market Performance: Depleted by 57.61% over the last year and 83.59% over the past 3 years.
Analyst Recommendations for Nel ASA:- Low Price-to-Book ratio at about 0.9x, suggesting potential undervaluation.- Anticipated upside of approximately 9.9%.
Nel ASA's Future Growth:- Currently a frontrunner in green hydrogen production.- Focus on electrolyzers and partnerships (such as with Haldor Topsoe for green ammonia solutions) may drive growth if market conditions improve.
General Prospects for Hydrogen Stocks:- Both Nel ASA and Plug Power operate in a sector that's drawing significant attention and investment due to the push for green energy and hydrogen adoption.- The transition to renewable energy sources is likely to continue, which could bolster the long-term growth of companies involved in hydrogen technologies.
Conclusion:
Nel ASA faces short-term challenges but holds potential for long-term growth due to its green hydrogen involvement. Analyst recommendations point to a modest upside for Nel ASA, but both companies could gain from rising demand for hydrogen technologies as the world shifts towards cleaner energy sources. However, short-term performance may fluctuate based on market conditions and investor confidence.
- Despite the optimistic chart performance, Nel ASA's stock demonstrates a negative profit per share and lacks a P/E ratio or dividend yield, while analists are cautious, suggesting potential for a 21.2% drop.
- Plug Power, on the other hand, is promising for American investors, with optimistic analysts forecasting a potential increase of 57.7%, even though it's still struggling chart-wise and below the 200-day line.
- Both Nel ASA and Plug Power are part of the BÖRSE ONLINE Green Future Index, indicative of their significant role in the growing green hydrogen sector.
- The long-term outlook for hydrogen stocks is positive, as the transition to renewable energy sources continues, potentially bolstering the growth of companies involved in hydrogen technologies.
