![]() Toyota, Hyundai, and GM have been the most resistant in giving up on the technology, which also can achieve zero-emission transport, but it is much less efficient than BEVs.įor passenger cars, it’s already game over for fuel cells (FCEV). Most have been betting on battery-electric vehicles(BEV), but a few automakers have insisted on trying to make fuel cell hydrogen powertrains work. The auto industry has been divided on solutions to remove emissions from their products. Faizan does not directly own the securities mentioned above.A new study published in the peer-reviewed journal Nature has confirmed what common sense has made clear for years: Hydrogen fuel cell vehicles aren’t likely to catch up to battery-electric vehicles – even for commercial trucks. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.įaizan Farooque is a contributing author for and numerous other financial sites. If you must invest in the hydrogen space, PLUG seems the better option, at least on fundamentals. Until there is something - anything - from the company that backs its valuation, I don’t believe it’s worth your time. In conclusion, there isn’t anything that warrants FCEL’s premium valuation over other fuel cell stocks. The 12-month price target of $13.60 per share implies a roughly 43% downside. Meanwhile, FCEL stock has one analyst out of seven giving a bullish verdict. Out of 14 analysts covering PLUG, 11 have given a bullish verdict on the stock. He conceded that PLUG stock is the “best in class.” But he advised investors to wait for a better entry point in the stock before buying it. “Hydrogen pure-play stocks have outperformed the S&P 500 massively,” he wrote. The same analyst initiated coverage of PLUG stock with a hold rating. Coster cut his rating to underweight from neutral, assigning a $10 price target and claiming the stock is “richly valued” at current levels. He argued that the stock is worth about half of its latest closing price. Morgan analyst Paul Coster turned bearish on the alternative energy company. Source: Chart by Faizan Farooque, data from S&P Global Market Intelligence FCEL Stock Has to Do More to begin to match the pace of advancement seen in other markets such as Europe and Asia, and to be favorable toward development of the growing hydrogen economy,” FuelCell Energy CEO Jason Few said in a statement. “Based on the initial policy objectives outlined by the incoming White House administration, we expect clean energy and climate policies in the U.S. Additionally, it reported a net loss of eight cents per share, which was four cents per share worse than consensus estimates.ĭespite the negative results, the stock did not get that much of a hammering people are still bullish after President Biden moved to rejoin the Paris Climate Agreement and signed a series of executive orders. The company reported a 54% rise in revenue to $17 million in the fourth quarter, missing consensus estimates by $50,000. However, if the latest earnings are anything to go by, FCEL looks like a company that will burn investors. Explosive Growth Without Fundamental StrengthįCEL stock has outperformed the S&P 500 by 1188.6% and its sector by 1196.4% in the past year. Regardless, the penny will drop at some stage. ![]() ![]() Despite this performance, FCEL stock trades at 71.6 price-to-sales (P/S), confounding critics and bears alike. Out of the last 12 quarters, FuelCell has disappointed analyst expectations 10 times. When we hone in on FCEL in particular, we see a company in trouble. However, not every company is an excellent prospect in this industry. Hence, hydrogen stocks are enjoying a bull run like never before. rival Bloom Energy (NYSE: BE) and Canada’s Ballard Power Systems (NASDAQ: BLDP) are up fourfold or more. fuel-cell specialist Plug Power (NASDAQ: PLUG) are also up 300%, while U.S.
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