In this article we discuss the 5 best nuclear stocks to buy now. If you want to read about some more nuclear stocks, go directly to 10 Best Nuclear Stocks to Buy Now.
5. Denison Mines Corp (NYSE:DNN)
Number of Hedge Fund Holders: 12
Denison Mines Corp (NYSE:DNN) engages in the acquisition, exploration, development, extraction, processing, selling, and investing in uranium properties. On August 4, the company posted earnings for the second quarter of 2022, reporting earnings per share of C$0.02. The revenue over the period was C$6.8 million, up over 47% compared to the revenue over the same period last year. The firm is based in Toronto and was founded in 1997. The firm owns and operates nuclear projects in the northern Saskatchewan region.
On August 24, TD Securities analyst Craig Hutchison resumed coverage of Denison Mines Corp (NYSE:DNN) stock with a Speculative Buy rating and a price target of C$2.25, noting that the firm would benefit from rising uranium prices in the coming years.
At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $21 million in Denison Mines Corp (NYSE:DNN), compared to 16 in the previous quarter worth $40 million.
4. NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Holders: 13
NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company engaged in the acquisition, exploration, and development of uranium properties. One of the premier projects of the firm is the Rook I project. It comprises 32 contiguous mineral claims totalling an area of 35,065 hectares. It is located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver and has a market capitalization of more than $2.2 billion.
In late June, NexGen Energy Ltd. (NYSE:NXE) had submitted the draft environmental impact statement for the Rook I project to the Saskatchewan Ministry of Environment and Canadian Nuclear Safety Commission.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $64 million in NexGen Energy Ltd. (NYSE:NXE), compared to 15 in the preceding quarter worth $17 million.
3. BHP Group Ltd. (NYSE:BHP)
Number of Hedge Fund Holders: 19
BHP Group Ltd. (NYSE:BHP) operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The firm is one of the few uranium stocks with an excellent dividend profile. The company has consistently paid a dividend to shareholders for the past thirteen years. In the past two years, these payouts have registered consistent growth as well. In late August, BHP Group Ltd. (NYSE:BHP) declared a semi-annual dividend of $3.50 per share, an increase of 16% from the prior dividend.
On August 17, investment advisory Credit Suisse maintained a Neutral rating on BHP Group Ltd. (NYSE:BHP) stock and raised the price target to GBP 2,300 from GBP 2,200. Analyst Danielle Chigumira issued the ratings update.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in BHP Group Ltd. (NYSE:BHP), compared to 19 in the preceding quarter worth $2.2 billion.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group Ltd. (NYSE:BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP Group Ltd. (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
2. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 24
Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. On September 13, the company announced that it had signed an agreement with Volvo to decarbonize operations under which the former will supply responsibly sourced products including lithium, low-carbon aluminum, copper, and metallics to the latter. These will help the mining giant decarbonize operations by piloting the sustainable autonomous hauling solutions.
On August 16, investment advisory Morgan Stanley maintained an Equal Weight rating on Rio Tinto Group (NYSE:RIO) stock and lowered the price target to GBP 5,900 from GBP 5,990. Analyst Alain Gabriel issued the ratings update.
At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Rio Tinto Group (NYSE:RIO), compared to 26 the preceding quarter worth $2.5 billion.
1. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 40
Cameco Corporation (NYSE:CCJ) produces and sells uranium. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.18, beating estimates by $0.17. The revenue over the period was $588 million, up over 55% compared to the revenue over the same period last year, beating estimates by $174 million. The company was founded in 1987 and is based in Canada. It has a market capitalization in excess of $12 billion as of September 13.
On August 17, GLJ Research analyst Gordon Johnson maintained a Buy rating on Cameco Corporation (NYSE:CCJ) stock and raised the price target to C$48.40 from C$37.86, noting that the secondary supply of uranium will fall materially in 2023 due to overfeeding.
At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $477 million in Cameco Corporation (NYSE:CCJ), compared to 43 in the preceding quarter worth $751 million.
In its Q1 2021 investor letter, Driehaus Capital, an asset management firm, highlighted a few stocks and Cameco Corporation (NYSE:CCJ) was one of them. Here is what the fund said:
“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco Corporation (NYSE:CCJ) significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”
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