With ExxonMobil, FuelCell Energy is already working nicely with regard to carbon capture. Now ExxonMobil has published a six-year plan that sees the corporation wanting to invest USD 15 billion in this area. As a result, I therefore believe that for FuelCell Energy there is potential for many a supplementary and major order.
The market capitalization of FuelCell Energy, which stands at more than USD 3.5 billion, is comparable with that of Bloom Energy at USD 4.5 billion. FuelCell Energy will achieve revenue of about USD 100 million whereas Bloom will cross the USD 1 billion threshold next year and, according to forecasts, could move into profit. What is also clear is that FuelCell Energy’s shares are popular on platforms like Reddit and Robinhood as is reflected clearly in their daily transaction volumes ranging from up to through to more than 100 million shares. On the other side of the coin, you need to recognize that FuelCell Energy’s balance sheet is obviously healthy with liquidity that probably exceeds USD 400 million.
My conclusion: suitable for traders although long-term investors should invest in Bloom instead, especially as both companies serve pretty similar sectors through fuel cell power plants, and of course, will profit from this megatrend and from the US Biden government’s plans.
Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.
Written by Sven Jösting December 7, 2021
