10 Best US Stocks to Buy Under $5

7. Uranium Energy Corp. (NYSE:UEC)

Number of Hedge Fund Holders: 28

Current Share Price: $4.37

Uranium Energy Corp. (NYSE:UEC) is an energy company engaged in the exploration, pre-extraction, extraction, and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. It operates as a critical supplier of Uranium in the U.S. and Canada. It is one of the best U.S. stocks to buy under $5 as Uranium prices show signs of edging higher.

The stock sentiments received a significant boost early in the year after the spot price of Uranium rose from $49 to $95. While the price has since pulled back to about $68, Uranium Energy Corp. (NYSE:UEC) is one company well positioned to benefit as prices edge higher amid strong Uranium demand.

Uranium Energy Corp. (NYSE:UEC) is currently developing several projects in both North and South America, aiming to establish a reliable supply of nuclear fuel, provided that the demand for Uranium stays high. The use of nuclear energy appears to be attracting new supporters as a consistent source of power that does not release carbon dioxide, positioning it as a sustainable energy option.

Uranium Energy Corp. (NYSE:UEC)’s competitive edge in the industry stems from its inked advantageous deals to buy Uranium when its price was quite low. The firm has created one of the biggest stockpiles of Uranium in the U.S. It obtained a contract from the U.S. Department of Energy to provide 300,000 pounds of U3O8 as part of the nation’s effort to create a local uranium reserve.

Uranium Energy Corp. (NYSE:UEC) has made a smart move by agreeing to purchase Uranium at record-low prices, which enables it to accumulate a cost-effective stockpile of the nuclear energy source. The earnings from selling this stockpile can, in turn, support the company in financing its extensive plans for developing mines, which is an intriguing narrative.

The company is well positioned to benefit from the U.S. government banning Russian uranium imports as the Nuclear Fuel Security Act also supports the growth of the U.S. uranium industry, ensuring a reliable supply of clean energy.

As of Q2 2024 end, 28 out of the 912 hedge funds part of Insider Monkey’s database were Uranium Energy Corp. (NYSE:UEC)’s investors. Richard Driehaus’s Driehaus Capital is the firm’s largest shareholder among these, as it owns 9.15 million shares that are worth $54.98 million.