Something different from Nel ASA and Plug Power – What Nordex SE, Ballard Power Systems, and RE Royalties Are Really Worth in Your Portfolio! Are These Stocks Ready for a Major Breakout?

Operational Turnaround Fuels Ballard Rally: Analysts Urge Caution

Canadian fuel cell manufacturer Ballard Power is experiencing a (modest) operational turnaround that has literally catapulted its stock price to a new multi-year high in the wake of a strong rally. This optimism was partly triggered by the figures for the first quarter of 2026, in which revenue climbed 26% year-over-year to USD 19.4 million. The gross margin jumped to a positive 14% thanks to restructuring, while the net loss shrank to USD 11.4 million. Since the company reduced its operating cash burn by nearly 68% and has a cash reserve of USD 516.8 million, it could be fully funded for about 5 years.

But the primary growth driver is the order backlog, which has exploded to USD 119.3 million. Through multi-year strategic framework agreements with leading bus manufacturers such as New Flyer, Solaris, and Wrightbus, Ballard is transforming itself into an industrial series supplier for large hydrogen fleets by 2029. Despite these milestones, analysts are urging caution due to an even more ambitious valuation following the recent rise to more than 20 times annual revenue. The consensus is leaning toward "Halten", as the share price has already surpassed the average target of approximately USD 3.40. Uncertainty is also fueled by the fact that the major Chinese shareholder, Weichai Power, has reduced its stake and withdrawn its board members.

Nordex's Fundamental Growth Trajectory Remains Intact — Despite Short-Term Profit-Taking

The TecDAX-listed wind power group Nordex presents itself operationally as a solid growth stock, but is currently undergoing significant profit-taking following a months-long rally. Although the stock still boasts an impressive year-to-date gain of well over 100%, it lost about 10% over the past seven days and stabilized at EUR 42.60 at the start of the week, slipping below key levels of EUR 44 and even EUR 43.

There are hardly any fundamental reasons for this setback; at the very least, one would have to search for or "invent" them, as Nordex increased its revenue by 10.6% to EUR 1.59 billion in the first quarter of 2026, while earnings per share climbed significantly to EUR 0.23. For the full year, analysts forecast earnings of EUR 1.88 per share, putting the average price target of EUR 43.75 slightly above the current share price. A key advantage is the new production facility in Turkey, which focuses on mass production with lower manufacturing costs and has an annual capacity of 1,200 rotor blades. This helps secure margins and provides logistical access to high-growth markets in Eastern Europe and the Middle East. Strong political signals, such as an EU visit to Hamburg, also underscore Nordex's relevance. The release of the H1 results on July 29 will show whether the recent pullback was merely a healthy consolidation phase.

Both stocks, Nordex and Ballard Power, demonstrate the extent of technological innovation in clean energy. However, both approaches share a significant challenge: they consume enormous amounts of capital and entail operational risks in hardware manufacturing. Yet there is another approach a company can take to profit from this megatrend without physical factories. This financial perspective leads us directly to a specialist that not everyone has on their radar yet.

RE Royalties at a Strategic Turning Point

RE Royalties is taking a different path. The company has adapted a proven financing model from the commodities sector to renewable energy. They acquire revenue-based royalties by offering developers nearly tailor-made financing solutions. The current portfolio already includes over 100 active royalties across solar, wind, hydropower, battery storage, and energy efficiency.

Just under two months ago, on March 27, the company announced a landmark development. The board of directors has initiated a formal strategic review. The goal of the process is to identify options for maximizing shareholder value. The renowned firm PricewaterhouseCoopers Corporate Finance Inc. was engaged as financial advisor. The range of alternatives being examined extends from a complete sale to strategic partnerships to optimizing the capital structure through equity or debt financing. This review represents a logical next step for the company in its eleventh year of operation. Meanwhile, operations continue at full speed. Management highlights the enormous demand in the sector. Currently, there are non-binding letters of intent for short-term project opportunities valued at approximately CAD 20 million. In addition, a pipeline of potential investments totalling an additional CAD 200 million is under close review. CEO Bernard Tan points to disciplined investments, while COO Peter Leighton emphasizes the growth-oriented adjustment of the capital structure. This announcement may appear somewhat unspectacular, but it could be the spark that ignites growth. In essence, it means: they are reviewing all available options. Perhaps someone may be interested in acquiring the company, or in another alternative that could be beneficial for shareholders.

A look at the latest presentation underscores the company's robust framework. With a current share price of around CAD 0.39, the market capitalization stands at approximately CAD 17 million. Revenue for 2025 has already reached CAD 6.2 million. The relatively high insider ownership of 24% of all outstanding shares stands out as particularly positive. This demonstrates a strong alignment with shareholder interests. The historical track record is also solid. Since its founding, over CAD 83 million has been invested in 27 completed transactions encompassing more than 135 individual projects. The portfolio achieves an impressive weighted internal rate of return of 19% and a capital return factor of 1.50 times the invested capital. RE Royalties borrows capital at interest rates of 6%–9% and effectively invests it at an average return of over 19%. At the same time, long-term royalty streams are generated for 15–20 years. This closes a financing gap for mid-sized developers, who are often overlooked by banks and would not otherwise have access to such financing.

Technical Analysis

From a technical perspective, the stock is currently at a highly interesting price level. The share could break above the current slightly downward-sloping resistance trendline at CAD 0.42–0.43. On the downside, there is horizontal support at CAD 0.35, with a prior support zone at CAD 0.37–0.38. This provides a solid floor for the share price. The stock could now pick up momentum again on the upside, but to do so, it would need to rise above CAD 0.43. A first price target would then be the region around CAD 0.50 according to technical analysis, followed by a second price target at CAD 0.60. The signs for an uptrend are therefore not looking too bad.

Ultimately, it appears that all the stocks presented are currently benefiting in different ways from global decarbonization. After several difficult years, Nordex is finally regaining operational strength, filling its order books, and improving margins. Ballard Power remains a long-term technological hope for heavy-duty transportation, though it is already trading at a "stretchy" valuation. RE Royalties, on the other hand, presents itself as a solid, smaller-cap alternative for investors. Thanks to its proven licensing model and ongoing strategic review, the company offers an interesting profile that could gain additional momentum with a potential technical breakout above key levels.