In this article we discuss the 10 best nuclear stocks to buy now. If you want to read about some more nuclear stocks, go directly to 5 Best Nuclear Stocks to Buy Now.
The role of nuclear energy in the global energy transition is often misunderstood. This is because there is a fierce debate over the environmental impact of nuclear power plants in the long-run, even though they represent the most convenient transition option in a switch away from coal and fossil fuels. According to a report by the International Energy Agency, if the global energy transition proceeds with a precipitous decline in nuclear power generation, the transition will be more challenging, more risky, and $500 billion more expensive.
The agency has called on countries to double nuclear power generation in a bid to achieve net zero emissions targets by 2050, even as global nuclear power generation remains on track to fall from 10% of global output to 3% by 2050. The agency also claims that nuclear life-extensions are generally cost-competitive with other power generation sources, including new wind and solar capacity. The agency has claimed that policymakers around the world are recognizing this and nuclear energy is poised for a comeback in the future.
The status of the nuclear industry in the United States presents an interesting case study in the global context of the sector. At the end of last year, there were 93 operating commercial nuclear reactors at 55 nuclear power plants in 28 states around the country. The average age of these reactors is 40 years and the latest came into service in 2016, more than 20 years after the previous one. The US nuclear capacity peaked in 2012, according to data from the Department of Energy, when there were 104 operating nuclear reactors.
The data indicates that even though the US has seen the meteoric rise of renewable energy giants like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR) in the past few years, nuclear companies have still not arrived to the party. Policymakers blame the US government for not developing frameworks that facilitate the sector and pushing policies that increase construction costs of nuclear plants. Calls for the reversal of nuclear phaseout goals in Europe and Asia are growing in the US as well.
Even though market experts paint a bright uranium future, the demand for the precious resource in the coming months and years will likely depend on several factors, including the number of new uranium-related projects, the amount of time it takes to complete those already under construction, as well as the reactors that are closed down. Supply constraints that have sprung up because of the pandemic have pushed uranium prices to new highs in recent months, and this increase is likely to persist till 2023.
Our Methodology
The companies that operate in the nuclear sector were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Nuclear Stocks to Buy Now
10. Uranium Royalty Corp (NASDAQ:UROY)
Number of Hedge Fund Holders: 2
Uranium Royalty Corp. (NASDAQ:UROY) operates as a pure-play uranium royalty company. In early September, the company announced that it had renewed an at-the-market equity program that allows it to distribute up to $40 million worth of common shares to the public. The firm said that the offered shares under the program will be sold at the prevailing market price at the time of sale. The firm aims to use the net proceeds to finance the acquisition of additional royalties, streams, physical uranium, and similar interests, as well as working capital.
Uranium Royalty Corp. (NASDAQ:UROY) was founded in 2017 and is based in Canada. It has a market capitalization of more than $304 million. It manages a portfolio of geographically diversified uranium interests.
At the end of the second quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $2.7 million in Uranium Royalty Corp. (NASDAQ:UROY), compared to 5 the preceding quarter worth $5.8 million.
Just like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Uranium Royalty Corp. (NASDAQ:UROY) is one of the stocks that smart investors should monitor.
9. Lightbridge Corporation (NASDAQ:LTBR)
Number of Hedge Fund Holders: 2
Lightbridge Corporation (NASDAQ:LTBR) engages in the design and development of nuclear fuel technology. In mid-August, the firm announced that it had been granted a patent in Korea surrounding the fuel assembly design of the firm for use in CANDU-type reactors. The new design includes metallic fuel rods arranged into a mixed grid pattern that includes a rectangular grid pattern and a triangular grid pattern. Seth Grae, the CEO of the firm, said on the occasion that Korea was a huge market for the firm.
Lightbridge Corporation (NASDAQ:LTBR) posted earnings for the second quarter of 2022 on July 27, reporting losses per share of $0.14. The cash and cash equivalents over the period were $29.3 million, compared to $24.7 million at the end of December 2021.
At the end of the second quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $151,000 in Lightbridge Corporation (NASDAQ:LTBR), compared to 1 the preceding quarter worth $123,000. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Lightbridge Corporation (NASDAQ:LTBR), with 19,635 shares worth more than $92,000.
8. Ur-Energy Inc. (NYSE:URG)
Number of Hedge Fund Holders: 3
Ur-Energy Inc. (NYSE:URG) engages in the acquisition, exploration, development, and operation of uranium mineral properties. The firm has interests in 12 projects that are based in the United States. One of the flagship properties in the country is the Lost Creek project. This comprises almost 1,800 of unpatented mining claims and three Wyoming mineral leases covering an area of 48,000 acres located in Wyoming. The company was founded in 2004 and is headquartered in Colorado.
Ur-Energy Inc. (NYSE:URG) posted earnings for the second quarter of 2022 on August 2, reporting losses per share of $0.03, missing analyst estimates by $0.01. At the end of June, the firm had cash and cash equivalents of $43.3 million.
At the end of the second quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $22 million in Ur-Energy Inc. (NYSE:URG), compared to 5 in the preceding quarter worth $15 million. Among the hedge funds being tracked by Insider Monkey, Cayman Islands-based firm CQS Cayman LP is a leading shareholder in Ur-Energy Inc. (NYSE:URG), with 10 million shares worth more than $11 million.
7. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 8
Uranium Energy Corp. (NYSE:UEC) engages in exploration, pre-extraction, extraction, and processing uranium and titanium. In late August, the firm announced that it had completed a deal to purchase UEX Corp. The deal creates the largest diversified North American-focused uranium company. The company still has no operations and generates revenue from selling uranium from the purchased uranium inventory. The firm is based in Texas and was founded in 2003. It employs close to 50 people.
On June 15, Canaccord analyst Katie Lachapelle maintained a Speculative Buy rating on Uranium Energy Corp. (NYSE:UEC) stock and increased the price target to $6 from $5.5, noting that the company could surface long-term value from acquired assets.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $32 million in Uranium Energy Corp. (NYSE:UEC), compared to 12 in the previous quarter worth $39 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Driehaus Capital is a leading shareholder in Uranium Energy Corp. (NYSE:UEC), with 2.9 million shares worth more than $9 million.
6. Energy Fuels, Inc. (NYSE:UUUU)
Number of Hedge Fund Holders: 9
Energy Fuels, Inc. (NYSE:UUUU) engages in the extraction, recovery, exploration, and sale of conventional and on site uranium recovery. On August 5, the company posted earnings for the first half of 2022, reporting losses per share of $0.21. The revenue over the period was $9.4 million, up over 1,060% compared to the revenue over the same period last year. The firm is based in Colorado and was founded in 1987. The firm owns and operates nuclear projects in Wyoming, Texas, and Utah.
On July 28, Canaccord analyst Katie Lachapelle initiated coverage of Energy Fuels, Inc. (NYSE:UUUU) stock with a Speculative Buy rating and a price target of C$10, noting the firm was on the path to becoming a leading multi-commodity critical mineral company.
At the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $19 million in Energy Fuels, Inc. (NYSE:UUUU), compared to 15 the preceding quarter worth $37 million.
In addition to Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Energy Fuels, Inc. (NYSE:UUUU) is one of the stocks that hedge funds are keeping an eye on.
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Disclosure. None. 10 Best Nuclear Stocks to Buy Now is originally published on Insider Monkey.
