This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Should You Buy Into the Rise of the Fuel Cell Makers?

Stocks in this article: BLDP FCEL PLUG WMT TSLA TM HMC

NEW YORK (TheStreet) -- Fuel cell shares now are behaving like the 3-D-printing stocks of 2013. Shares of Ballard Power (BLDP), like those of its peers FuelCell Energy (FCEL) and Plug Power (PLUG), have soared. In 2014, Ballard's shares have risen by 250% to $5.28.

Ballard Power manufactures and sells fuel cells and provides engineering services for fuel cell applications. A fuel cell is an environmentally friendly electrochemical device that uses hydrogen fuel and oxygen to produce electricity. So far, Ballard Power has designed and sold 150 MW of hydrogen fuel cells.

The recent sector rally can be attributed to increasing optimism due to some new orders, as well as Plug Power's deal with Wal-Mart (WMT). More important, Ballard Power has made significant improvements in its top and bottom lines. The company's shares could continue going higher in anticipation of positive cash flows and break-even earnings in the near future.

Ballard Power's long-term outlook appears bright, as some of the leading automakers have been betting big on the future of fuel cell cars. Furthermore, Tesla (TSLA) could also provide growth opportunities with its expansion plans.

Ballard Power has been trading on the Nasdaq for decades. It used to be a fairly large organization, with a market cap of $5 billion in 2000. Back then, the company's stock soared to more than $120 because of all the excitement surrounding fuel cell vehicles, which later turned out to be false hope. Consequently, Ballard Power's shares tanked. Despite the recent rally, its market cap is less than $580 million.

In the last three years, Ballard Power's revenue has risen by 10%, which isn't a lot, but its gross profits have more than doubled. Its gross margins have risen from just 13% in 2011 to 27% in 2013.





Revenue (in thousands)




Gross Profit (in thousands)




Net Loss (in thousands)




Gross Margin




In its previous fiscal year, Ballard Power's revenue climbed 40%, while its adjusted losses shrunk 63%. Its net cash reserves also rose to $30.3 million from $12.48 million in the previous fiscal year.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs