April was a punishing month for the stock markets, and the majority of stocks across sectors recorded significant declines. However, some stocks have managed to stand out from the crowd, and one of those is Ballard Power Systems Inc’s (NASDAQ:BLDP) stock. It has delivered three times the returns that were generated by the wider market and is up 52.4% in 2020 so far.
In such a situation, it could be worthwhile for investors to take a closer look at the Ballard stock. Ballard is one of the biggest players in the hydrogen fuel cell industry, and the spending on those cells is expected to rise in the coming years.
Hydrogen fuel cells are slowly but surely gaining traction, and recently, Ballard got into a potentially lucrative joint venture with Chinese firm Weichai Power. The possibility of large scale fuel cell commercialization is bright. A study from consulting firm Deloitte has revealed that it is possible for electric vehicles to be cheaper if it runs on fuel cells as opposed to batteries. Costs could then fall by as much as 50% in a decade, and with time, fuel cells will also become cheaper. The electric vehicle industry could then generate bigger demand and free itself of government subsidies.
Hence, it is not entirely surprising that there has been a lot of investor interest in the Ballard Power stock. Moreover, if these things pan out as expected, the stock could deliver explosive gains. Trading volumes have gone up by as much as 400% in 2020, and this year, Ballard expects to boost its revenues by as much as 22%. In addition to that, Ballard has a cash pile of $148 million and also boasts of a strong order book. The management expects revenues to grow by 25% to 35% every year. However, from 2023, the growth is expected to be higher. The stock could well prove to be one to watch out in the coming days.