Stocks from NEL, Ballard Power, ITM and Plug Power in focus: who will benefit most from the new momentum

• Hydrogen stocks are rising significantly again
• ITM leads momentum, NEL lags behind
• Trend towards re-rating rather than new super cycle

Stocks such as Plug Power, ITM Power, Ballard Power and NEL ASA have recently recorded significantly increased trading activity and noticeable price movements. For example, the NEL share on the Oslo stock exchange rose by 14.95 percent to NOK 3.575 on Friday alone. Over the last three months, the stock has gained almost 70 percent. On Monday, however, the share certificate has to take a forced break: There is no trading in Norway due to the public holiday. Likewise, at the start of the week, the shares of ITM Power, Ballard Power and Plug Power are also on holiday break after they had also recently performed spectacularly: ITM Power shares in London rose by around 164 percent in the last three months, Ballard Power shares rose by around 163 percent on the NASDAQ in the same period and Plug Power shares on the US stock exchange rose by around 105 percent over the course of three months.

Are these signs of a selective reassessment within the troubled sector?

From hype to reality: A sector is looking for its new valuation basis

The hydrogen industry was met with massive expectations in the early phase. Many business models were assessed early on as having high growth expectations, even though actual industrialization was much slower. As a result, there has been a long correction phase in recent years in which investors withdrew capital and many stocks lost significant value.

This phase now seems to be transitioning into a new market logic. Instead of blanket skepticism or euphoria, selective investment decisions are again dominating. Companies with clearer technological positioning or visible project pipelines benefit more, while others lag behind.

ITM Power as the current momentum leader

This shift is particularly evident at ITM Power. The company is currently increasingly perceived by the market as a pure lever for industrial hydrogen production. The focus is on electrolysis technologies, which are considered a key component of the hydrogen economy.

The latest price development suggests that investors are pricing in greater operational implementation than in the previous year. ITM Power therefore benefits above average from the general industry momentum and is currently considered one of the most dynamic stocks in the sector.

Ballard Power between stabilization and skepticism

Ballard Power Systems is also experiencing a period of increased attention. The company is particularly positioned in the area of ​​fuel cells for buses, trucks and industrial applications. It thus addresses a market that is considered potentially relevant in the long term, but which has so far fallen short of expectations in terms of practical implementation.

Investors have recently acknowledged initial operational improvements here, but the bottom line is that they remain cautious as long as sustainable profitability is not foreseeable.

Plug Power: Between Restructuring and high leverage

In the current market phase, Plug Power is also benefiting from improved sentiment in the sector, although the share remains particularly strongly influenced by operational and financial factors. The company is still in a phase in which high investments in production capacities and infrastructure are not yet covered by correspondingly stable cash flows. This structural imbalance has repeatedly led to considerable volatility in recent years and, even in the current environment, ensures that price movements are driven more by expectations than by fundamentals.

At the same time, Plug Power is considered by many market participants to be one of the most “leveraged” bets on the successful industrialization of green hydrogen in the USA. If the development of so-called hydrogen hubs and industrial buyer structures accelerates, the company could benefit disproportionately. Conversely, the share reacts just as sensitively to delays in projects, capital measures or pressure on margins.

NEL ASA: Technology meets investor patience

A slightly different picture emerges at NEL ASA. The Norwegian company is one of the established players in the electrolysis sector, but continues to struggle with fluctuating order intake and an earnings structure that is not yet stable.

Although technological development is generally viewed positively by the market, there is still no clear evidence that this strength can be translated into permanently increasing margins and resilient sales. Accordingly, the share remains a laggard in the current rebound compared to the other major hydrogen stocks.

A market in transition: Between infrastructure hope and reality check

The current development in the hydrogen sector can be interpreted less as a new boom and more as a phase of differentiation. After years of excessive expectations, investors are increasingly focusing on concrete industrial applications, government funding programs and viable business models.

In addition, macroeconomic factors such as interest rate developments play an important role. Capital-intensive future industries typically benefit from a more stable or falling interest rate environment, as this makes investments in infrastructure projects more attractive.

However, whether the current price movements result in a sustainable new upward trend will depend less on short-term price movements and more on whether companies can increasingly translate their technological promises into scalable and profitable business models.

Carolin Ludwig, editorial team at finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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