Cummins, FuelCell Energy: Hydrogen Stocks Continue To Underperform. Should You Invest?

Cummins, FuelCell Energy: Hydrogen Stocks Continue To Underperform. Should You Invest?

UKRAINE - 2021/06/24: In this photo illustration, a Cummins Inc. logo seen displayed on a ... [+] smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Our theme of Hydrogen Economy Stocks, which includes the stocks of U.S. listed companies that sell hydrogen fuel cells, related renewable energy equipment, and supply hydrogen gas, has declined by about 16% year-to-date, compared to the S&P 500 which is now up by almost 17% over the same period. The decline is driven by the Covid-19 reopening and rising bond yields, which have resulted in slowing interest in futuristic stocks. Moreover, hydrogen isn’t a primary fuel, unlike oil and natural gas. It needs to be produced and this has to happen in a clean and cost-efficient manner and it will probably take a little more time for the technology to go mainstream.