Zacks Industry Outlook Highlights: FuelCell Energy, Ballard Power Systems and Plug Power

Jun 06, 2014, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, June 6, 2014 /PRNewswire/ -- Today, Zacks Equity Research discusses the Utilities, including FuelCell Energy (Nasdaq: FCEL-Free Report), Ballard Power Systems (Nasdaq: BLDP-Free Report) and Plug Power Inc. (Nasdaq: PLUG-Free Report).

Industry: Utilities


Despite the assured demand for services, the utilities have to constantly meet the high expectations of its wide customer base, adapt to a changing global economic scenario, and upgrade technologies to meet stringent environmental norms. In fact, new technology to produce power at a cheaper rate and emerging alternative resources for the generation of green power is likely to drive the industry going forward.

The majority of new electricity in the next two decades in the U.S. will be generated from natural gas and renewable sources. Besides the abundance of natural gas, as many as 29 U.S. states and the District of Columbia have enforceable renewable portfolio standards or other renewable generation policies. We expect this count to go up, compelling producers to generate more green power to meet the renewable standards fixed by the states.

Fuel cell technology, an alternate method of power generation, has been making a lot of buzz lately. We, however, admit that this technology has a long way to go if it were to provide power plant solution on a large scale. The lead players in this field engrossed in R&D are FuelCell Energy (Nasdaq: FCEL-Free Report), Ballard Power Systems (Nasdaq: BLDP-Free Report) and Plug Power Inc. (Nasdaq: PLUG-Free Report). For now, it is a wait and see situation to find out whether fuel cell can offer a realistic solution to power generation and greenhouse gas emissions or whether its potential is only good on paper.

All said, utility operations globally depend on weather patterns that determine the extent of demand. The frigid weather in the U.S. during the last winter season showed how dependent we are on these utilities for basic needs.

To sum up, LNG exports will increase the profitability of the U.S. natural gas operators but the bottlenecks in granting permission are a concern. At the same time a concerted effort will have to be made to remove the funding requirement in the water utility sector. Otherwise the aging water infrastructure will lead to more wastage, leading to a hike in cost of operation and a related increase in the price of water supplied.

As for the electric utilities, we expect more investment in natural gas and alternate energy projects, wrenching the initiative from the pure-play coal based electricity companies.

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!  Click here for your free subscription to Profit from the Pros.

Get the full Report on FCEL- FREE

Get the full Report on BLDP- FREE

Get the full Report on PLUG- FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Logo -

SOURCE Zacks Investment Research, Inc.