14 Best American Energy Stocks To Buy According to Analysts

10. Centrus Energy Corp. (NYSE:LEU)

Number of Hedge Fund Investors  in Q1 2024: 9

Average Analyst Share Price Target Upside: 62.94%

Average Analyst Share Price Target: $69.33

Centrus Energy Corp. (NYSE:LEU) is a nuclear energy company that provides uranium fuel rods and other equipment for nuclear power plants. Its shares are down by 18% year to date, on the back of a disappointing first quarter earnings report which saw Centrus Energy Corp. (NYSE:LEU) report a net loss for the first time in more than a year. This is because the firm’s business is cyclical in nature, and it can only recognize revenue when its customers decide to execute their purchase agreements. Since Centrus Energy Corp. (NYSE:LEU) also depends on uranium imports for its fuel rods, it is also vulnerable to sanctions that came in place after the Russian invasion of Ukraine. However, it scored a win on this front in July 2024 when the US government gave it an import waiver. Centrus Energy Corp. (NYSE:LEU) also enjoys considerable advantages in the US energy market as it is the only uranium enricher and centrifuge manufacturer in America.

Commenting on its future prospects, here’s what Centrus Energy Corp. (NYSE:LEU)’s management had to say during the Q1 2024 earnings call:

“The Ukraine invasion sparked concerns over Russia’s dominance in the nuclear fuel market, causing market prices for enrichment to triple. Meanwhile, a whole new generation of reactors is coming to market. Many of them will require HALEU and will use them for a lot more than just electricity.

They have the potential to provide high temperature heat for industrial processes, like making cement or steel or desalinating water. Google and Microsoft are exploring deploying these new reactors to provide 24/7 power to the vast new data centers that will be needed for AI systems. And next year, the U.S. military will test the prototype of a HALEU-fueled microreactor to meet the needs of our troops and military bases. Recognizing the surging need for clean energy, last year the United States joined with two dozen countries on four continents in a pledge to triple nuclear energy generation by 2050, and joined a subsequent declaration with our closest allies in committing to support new enrichment capacity needed to meet this goal. As a company and as a country, we have a once-in-a-generation opportunity to reclaim American leadership in uranium enrichment.”