Forget EV: Xebec Offers Much More Potential One of the top stocks, which has gone on sale recently is Xebec Adsorption (TSX:XBC).
Forget EV stocks: Xebec Adsorption offers significant long-term growth potential
Climate change is a major issue that’s not reversible. So, while EV stocks and electricity generation are some of the biggest contributors to climate change and need to be addressed, so does every other contributing factor.
This is where Xebec will be key. Its industrial products will be crucial for several industries going forward. Xebec is a rapidly growing clean-technology company with hydrogen and renewable natural gas assets.
This technology will be absolutely crucial to reduce emissions. Already well-known utilities such as Fortis have committed to using at least 15% renewable natural gas in its utilities by 2030. This is just one of many corporations reducing its carbon footprint.
On top of all the natural long-term growth that the company already has, it’s also making several attractive acquisitions. Most of these have been in the hydrogen space as Xebec recognizes hydrogen as a major area of growth.
This growing expertise in hydrogen is leading to a string of sales and collaborations. One of the most recent projects Xebec announced is the sale of an adsorption system that will be used to purify hydrogen for an American fuel cell company. The hydrogen will ultimately go toward powering fuel cell electric vehicles for Toyota, making this a major project for Xebec.
Xebec’s performance
Similar to EV stocks, Xebec has been one of the top performers over the last year. In 2020 the stock gained a whopping 307%, as investors began to realize its potential. In the last month, though, the stock has sold off by nearly 25%.
This is creating a major opportunity for investors. Xebec is still only a small-cap stock that’s worth just $1.3 billion. This gives investors huge growth potential, making Xebec a much better pick than EV stocks.
Analysts are considerably bullish on the stock, too. The stock closed at $8.29 on Tuesday. Compare that to the average target price just below $11 and the highest, which is as much as $17.
Plus, as the company continues to get more contracts and makes more attractive acquisitions, you can bet the growth will increase rapidly.
Bottom line
Any company that will contribute to a cleaner global environment has significant potential over the next few decades. However, it’s still important to look for value. So, while EV stocks offer incredible growth potential over the long term, stocks like Xebec offer even better value today.
https://www.fool.ca/2021/02/24/forget-ev-stocks-this-hydrogen-stock-offers-much-more-potential/