Investing In The Future: 3 Stocks In Next-Gen Nuclear Energy

  • In a climate-conscious era, nuclear energy stocks stand out with over a 60% gain in 2023, presenting a compelling investment opportunity.
  • Cameco (CCJ): With $148 million in net earnings and a raised 2023 revenue outlook to $2.58 billion, Cameco capitalizes on rising uranium prices and strategic global engagement.
  • Denison Mines (DNN): Denison showcases a 62% year-to-date stock surge driven by innovative ISR mining success.
  • Uranium Energy Corp. (UEC): UEC’s impressive 126.3% stock increase in six months and an MOU with TerraPower underline its pivotal role.

In an era defined by climate consciousness, the spotlight intensifies on the nuclear energy stocks as key players in our energy future. The U.S. ambitiously targets 100% carbon-free electricity by 2035 and has a global commitment to triple nuclear capacity by 2050.

The nuclear energy sector emerges as a strategic investment choice, asserting itself as a futuristic and dominant power source in the investment realm.

Moreover, investors are captivated by nuclear stocks as they effectively merge the urgency of climate change with the limitations of alternative energies such as solar and wind. This investment appeal is bolstered by nuclear energy’s proven safety track record and its superior functionality compared to other conventional energies. In 2023, nuclear energy has already outperformed. As this sector continues to evolve, it paves the way for an intriguing, profitable investment story.

Cameco (CCJ)

Cameco (NYSE:CCJ), is a leading global uranium miner, and one of the most relevant players in the geopolitical scenario . It’s had interactions with notable leaders like Ukraine’s President and Canada’s Prime Minister. Further, CCH has participated in key events including the OECD’s nuclear conference and the IAEA advisory group. These underscore CCJ’s pivotal role in driving the nuclear energy sector forward.

Moreover, Cameco’s latest quarter showcased impressive performance with a notable $148 million in net earnings, driven by higher uranium prices and effective cost management. This performance raised its 2023 revenue outlook between $2.43 and $2.58 billion. It serves to affirm Cameco’s strong standing in the nuclear sector, capitalizing on favorable market dynamics. Consequently, TipRanks analysts recommend a strong buy, foreseeing a 12% upside.

Denison Mines (DNN)

Denison Mines (NYSEAMERICAN:DNN), a top uranium mining company, has significantly expanded its market presence. With a notable increase in uranium prices this fall, the company’s stock price has impressively surged over 62% year to date (YTD). This underscores DNN’s incredible achievements in the competitive uranium market.

Additionally, Denison achieved a significant breakthrough with the successful completion of its first In-Situ Recovery (ISR) field test at the Heldeth Túé uranium deposit. This confirms hydraulic conductivity in the ore zone and demonstrates ISR mining’s technical viability. Further, it showcases Denison’s commitment to eco-friendly mining.

Financially, Denison reported robust growth, with third-quarter EPS of $0.07, driven mainly by a remarkable $63.1 million gain from uranium holdings. Also, it was attributed to progress in the Wheeler River Project. Furthermore, TipRanks analysts assign a 16.11% upside potential for the stock from current price levels, underlining its attractiveness.

Uranium Energy (UEC)

Uranium Energy Corp. (NYSE:UEC) has established itself as a major player the nuclear energy sector. UEC outperforms with a remarkable 126.3% share price increase in the past six months.

First, the company began the year with a major breakthrough, securing a major $17.85 million deal with the U.S. Department of Energy (DOE). This highlights UEC’s growing influence in the uranium industry and its role in the future of nuclear energy.

Moreover, UEC recently took a significant step forward by announcing a Memorandum of Understanding with TerraPower. This agreement marks a collaborative effort to supply domestic uranium fuel for the innovative Natrium Reactor, showcasing the company’s active role in advancing nuclear energy technology.

Furthermore, the company highlighted a record-breaking year with revenues of $163.95 million from selling 3,150,000 pounds of uranium. This yields a gross profit of $49.60 million. Enhancing its appeal, TipRanks analysts recommend the stock as a strong buy, with a 7% upside potential.

This post originally appeared at InvestorPlace.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.