5 Best Nuclear Energy Stocks To Buy Today

In this article, we will be taking a look at the 5 best nuclear energy stocks to buy today. To read our detailed analysis of these stocks and the nuclear energy sector, you can go directly to see the 11 Best Nuclear Energy Stocks To Buy Today.

5. BHP Group (NYSE:BHP)

Number of Hedge Fund Holders: 20

BHP Group (NYSE:BHP) is an Australian resources company. It engages in the mining of several minerals including uranium.

James Redfern at Bank of America upgraded BHP Group (NYSE:BHP) from Neutral to Buy on November 23.

An expected rally in commodities may benefit BHP Group (NYSE:BHP) in 2023. This June, the company reported profit from operations of $34.1 billion, up 34% from the year before. The board also determined to pay a dividend of $1.75 per share of $8.9 billion, bringing the company’s payout ratio to 77%.

There were 20 hedge funds long BHP Group (NYSE:BHP) in the third quarter, with a total stake value of $1.03 billion.

4. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Holders: 33

Duke Energy Corporation (NYSE:DUK) is an American energy company. It uses nuclear fuel, hydroelectric, natural gas, oil, and other energy resources to generate electricity.

Guggenheim’s Shahriar Pourreza holds a Buy rating on Duke Energy Corporation (NYSE:DUK) as of October 24, alongside a $97 price target.

Duke Energy Corporation (NYSE:DUK) has a significant dividend yield of 4.1% as of November 30. The company’s payout ratio for 2022 is expected to stand at 74%. Its annual EBITDA growth is also expected to accelerate to 6.7%, while its EPS growth has also remained consistent.

Duke Energy Corporation (NYSE:DUK) was found among the 13F holdings of 33 funds in the third quarter. Their total stake value was $400 million.

3. Exelon Corporation (NYSE:EXC)

Number of Hedge Fund Holders: 43

Exelon Corporation (NYSE:EXC) is an energy company working on energy generation, delivery, and marketing businesses in the US and Canada. The company owns nuclear, fossil, wind, hydroelectric, biomass, and solar generating facilities.

A Neutral rating was reiterated on Exelon Corporation (NYSE:EXC) shares on October 24 by analyst Shariar Pourreza at Guggenheim.

Exelon Corporation (NYSE:EXC) had strong EPS growth in the third quarter, in the 6-8% range, along with an attractive dividend yield of 3.38%. Analysts at Bank of America see the company’s earnings rising by 10% in 2022, and in 2023 the per-share profit growth is seen at 3%.

Our hedge fund data shows 43 funds long Exelon Corporation (NYSE:EXC) in the third quarter, with a total stake value of $1.5 billion.

ClearBridge Investments, an investment management firm, mentioned Exelon Corporation (NYSE:EXC) in its first-quarter 2022 investor letter. Here’s what the firm said:

“U.S. electric utility Exelon (NASDAQ:EXC) was also a top contributor. Exelon is a pure transmission and distribution regulated utility business serving millions of electric and gas customers across Delaware, Illinois, Maryland, New Jersey, Pennsylvania and the District of Columbia. Shares outperformed along with the utilities sector; Exelon is also starting to be viewed as a premium name after its recently completed spin-off of power generation business Constellation Energy (NASDAQ:CEG).”

2. Cameco Corporation (NYSE:CCJ)

Number of Hedge Fund Holders: 46

Cameco Corporation (NYSE:CCJ) is an energy company based in Canada. It produces and sells uranium, operating through its Uranium and Fuel Services segments.

Greg Barnes at TD Securities reiterated a Buy rating on Cameco Corporation (NYSE:CCJ) shares on October 28.

Cameco Corporation (NYSE:CCJ) is one of the largest companies in the nuclear energy sector, with a market cap of $10.4 billion. It has contracted nearly 23 million pounds of uranium over the next five years.

In total, 46 hedge funds were long Cameco Corporation (NYSE:CCJ) in the third quarter. Their total stake value was $569 million.

Aristotle Capital Management, LLC, an investment management company, mentioned Cameco Corporation (NYSE:CCJ) in its second-quarter 2022 investor letter. Here’s what the firm said:

“After making a strong run in the beginning of the year, Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was a primary detractor for the quarter. As countries focus on energy security and increasingly rely on nuclear energy, market dynamics are shifting in Cameco’s favor. Supply has tightened as the developed world pivots from Russia, a large supplier of uranium, while demand for non-Russia-linked uranium has increased. While we recognize there has been, and will likely continue to be, short-term volatility in uranium prices, we admire Cameco’s prior actions of operational discipline, which we believe have positioned the company to benefit from the current market dynamics. Cameco remains focused on prudently and profitably increasing production of its Canada-based assets, including an increase of its ownership stake in the Cigar Lake joint venture, as well as the planned start of production at the McArthur River/Key Lake mines in 2024. As these operations come online, we believe Cameco will be able to meet its utilities customers’ demand for long-term supply at higher equilibrium prices.”

1. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 64

ConocoPhillips (NYSE:COP) is a traditional energy company working to delve into the nuclear energy sector. The company’s Conquista Project has been developed and operated as a mill for the processing of uranium bearing ore from conventional surface mines in Texas.

Citigroup analyst Alastair Syme reiterated a Buy rating on ConocoPhillips (NYSE:COP) on November 22.

The company has an implied capital return of over 9.5% as of this Novermber. ConocoPhillips (NYSE:COP) also had free cash flow of $4.7 billion in the third quarter of 2022, meaning the company can buy back all its debt with the $10.7 billion of cash on its balance sheet.

Out of 920 hedge funds tracked in the third quarter, 64 funds were long ConocoPhillips (NYSE:COP). Their total stake value was $2.7 billion.

ClearBridge Investments, an investment management company, mentioned ConocoPhillips (NYSE:COP) in its third-quarter 2022 investor letter. Here’s what the firm said:

“ConocoPhillips (NYSE:COP) handily outperformed the energy sector, which led the value benchmark. Its exposure to natural gas helped the stock perform more in line with natural gas E&Ps, which led the sector due to the European energy crisis and U.S. shale gas being considered a secure long-term source of liquid natural gas. In addition to COP’s low-cost resource base, conservative balance sheet and experienced management team, we appreciate its strong focus on ESG measures, which we believe is a good indicator of the quality of a company’s business model and management team.

Specifically, we appreciate solid governance practices with compensation metrics emphasizing ROCE and relative total shareholder return, the board’s effective oversight of management as well as the company’s methane flaring leadership. COP is investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with a CO2 intensity of sub-5 kg/BOE, which would be one of the lowest emission sources of supply in the world.”

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