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Why Fuel Cell Stocks Are Rocking Today

By Rich Smith - Jan 6, 2021 at 1:48PM

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Democrats control the White House and probably Congress now. That's good news for renewable energy investors.

What happened

Fuel cell stocks are blowing up (in a good way) in Wednesday afternoon trading. At 12:35 p.m. EST today, shares of Bloom Energy ( BE -1.09% ) were up 11.7%, Plug Power ( PLUG 1.76% ) stock was jumping 12.2%, and FuelCell Energy ( FCEL -1.30% ) was doing best of all, up an astonishing 17.4%.

You can probably thank Georgia voters for that.

Three colorful arrows racing straight up on a black background

Image source: Getty Images.

So what

There's been just about no news on fuel cell stocks since Morgan Stanley's round of price target hikes way back before Christmas. But that could change, now that the voters in Georgia appear to have elected two Democrats to the U.S. Senate. Assuming both Jon Ossoff and Raphael Warnock end up winning their seats, the Senate in 2021 will number 50 Republicans, 48 Democrats, and two independents leaning Democrat. That leaves Vice President-elect Kamala Harris to cast tie-breaking votes in the event of any deadlocks.

Now what

Although Democrats' Senate majority is frail, Tuesday's election in Georgia appears to have swung the balance of power in Washington decidedly in favor of the Democrats -- and thus potentially in favor of passage of a Green New Deal.

Whether such a bill gets passed, and what ends up getting into it, is not known at this time. But a Green New Deal could potentially provide fuel cell subsidies that were lacking in the latest stimulus bill. This hope, in a nutshell, is what is lifting shares of Bloom Energy, Plug Power, and especially FuelCell Energy today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

FuelCell Energy, Inc. Stock Quote
FuelCell Energy, Inc.
FCEL
$7.20 (-1.30%) $0.10
Plug Power Inc. Stock Quote
Plug Power Inc.
PLUG
$34.05 (1.76%) $0.59
Bloom Energy Corporation Stock Quote
Bloom Energy Corporation
BE
$24.45 (-1.09%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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