While the S&P 500 was up more than 20% in 2023, it probably was not the best year for those who invested in the hydrogen sector. During aggressive interest hikes, a lot of the hydrogen companies struggled to keep revenue up and bring returns to investors. Despite a slow year for hydrogen stocks, the established global consciousness toward building a clean future with sustainable energy remains unchanged.

Investments in hydrogen could contribute to global decarbonization efforts, which is already occurring around the world. This means that hydrogen companies will grow at an exponential rate given the right macroeconomic conditions. Along with considerable financial benefits from the government, it will bring promising returns to investors in the long run.

As many investors are waiting for an interest rate cut by the Federal Reserve, which is expected to happen soon, now is a great time to invest in these three hydrogen stocks below.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Linde (LIN)

Source: nitpicker / Shutterstock.com

Linde (NASDAQ:LIN) is the largest industrial gas and engineering company globally with almost 200 hydrogen fueling stations as well as 80 hydrogen electrolysis plants. Headquartered in Dublin, Ireland, Linde is constantly expanding abroad. But it is also investing at home.

The gas stock plans to build the biggest electrolyzer, which will almost double the company’s sustainable liquid hydrogen production capacity in the U.S. On top of existing facilities in the U.S., Linde is also investing in a new proton exchange membrane electrolyzer. This new device will provide energy for approximately 600 fuel cell buses while producing 24 megawatts worth of energy.

Analysts are bullish about Linde stock. For instance, Citigroup upgraded Linde’s price target from $470 to $480 according to a recent research report published on Benzinga. Moreover, Wells Fargo raised the price target for Linde from $480 to $540. In terms of financials, its 1.27% dividend yield could be another buy factor for investors.

Plug Power (PLUG)

Source: T. Schneider / Shutterstock.com

Plug Power (NASDAQ:PLUG) produces hydrogen fuel cell systems with over 250 fueling stations. It is enjoying success abroad lately.

In May 2024, the company announced it would build 25 hydrogen fueling stations in South Korea. It also received approval from Korean Gas Safety for Plug’s Rochester Gigafactory for electrolyzer stack production. This makes it Plug Power’s first internationally approved performance certification, which also opens up the possibility to expand globally in the future.