11 Most Promising Penny Stocks According to Analysts

8. NexGen Energy Ltd. (NYSE:NXE)

Share Price as of April 15: $4.61

Number of Hedge Fund Holders: 37

Average Upside Potential as of April 15: 90.92%

NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company. It acquires, explores, evaluates, and develops uranium properties in Canada. It holds a 100% interest in the Rook I project which consists of 32 contiguous mineral claims that total an area of ~35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan.

NexGen’s flagship Rook I Project is being developed into the largest low-cost producing uranium mine globally. The Rook I Project is built under the most elite environmental and social governance standards. Notably, the company’s Arrow Deposit, which is a part of the Rook I project, has seen a 70% jump in pre-production cost, from CAD$1.3 billion to CAD$2.2 billion, causing its IRR to fall from 71.5% to 39.6%.

In December 2024, NexGen signed its first agreements with US utility companies to supply 5 million pounds of the nuclear fuel ingredient. NexGen Energy Ltd. (NYSE:NXE) also announced the beginning of a 43,000-meter exploration drill program at Patterson Corridor East, which lies in the world-class Arrow deposit. This program will be one of the largest drill programs in the Athabasca Basin, Saskatchewan in 2025. The company anticipates annual delivery of about 1 million pounds of uranium from 2029 to 2033.

L1 Long Short Fund stated the following regarding NexGen Energy Ltd. (NYSE:NXE) in its Q2 2024 investor letter:

“NexGen Energy Ltd. (NYSE:NXE) (Long -10%) weakened as uranium prices fell -7% over the quarter. We continue to see the uranium market as having positive fundamental supply/demand tailwinds over the medium to long term. NexGen is preparing to develop the world’s largest undeveloped uranium deposit, Arrow, located in Saskatchewan, Canada. This would be a major, new, strategic Western source to address the anticipated uranium market deficit. We anticipate that NexGen will have completed all regulatory requirements over the course of 2024, providing a clear pathway to full scale construction of the project. Arrow has the potential to generate more than C$2b of cash flow annually, once developed (2028) – a highly attractive proposition given NexGen’s current market cap of ~C$5.5b.”