In this article, we will look at the 5 cheap nuclear energy stocks to buy amid the energy war in Europe. If you want to explore similar stocks, you can also read 10 Cheap Nuclear Energy Stocks to Buy Amid Energy War.
5. BHP Group Limited (NYSE:BHP)
PE Ratio as of September 2: 6.29
BHP Group Limited (NYSE:BHP) is among the largest uranium miners in the world. The company wholly owns the Olympic Dam mine which is among the largest uranium-rich sites in the world. The company has operations in Australia, Europe, Asia, North America, South America, and internationally. On August 15, BHP Group Limited (NYSE:BHP) announced earnings for fiscal 2022. The company’s net profit increased by a factor of 3 and amounted to $30.9 billion.
On August 17, Credit Suisse analyst Danielle Chigumira raised her price target on BHP Group Limited (NYSE:BHP) to 2,300 GBP from 2,200 GBP and maintained a Neutral rating on the shares.
As of September 2, BHP Group Limited (NYSE:BHP) has a price-to-earnings ratio of 6.29 and is offering a forward dividend yield of 13.03%, which the company backs with free cash flows of $26.3 billion.
At the close of Q2 2022, 19 hedge funds held stakes in BHP Group Limited (NYSE:BHP) worth $1.38 billion. Of those, Fisher Asset Management was the dominating shareholder, with stakes worth $1 billion. The investment covers 0.71% of Ken Fisher’s 13F portfolio.
4. Rio Tinto Group (NYSE:RIO)
PE Ratio as of September 2: 5.02
Rio Tinto Group (NYSE:RIO) is a leading mining company that mines uranium and other mineral resources. The company is among the largest producers of uranium in the world and has two primary uranium mining facilities, the Ranger Uranium Mine of Energy Resources in Australia and the Rössing Uranium Mine in Namibia, Southern Africa.
On July 28, JPMorgan analyst Lyndon Fagan raised his price target on Rio Tinto Group (NYSE:RIO) to 5,350 GBP from 5,300 GBP and maintained a Neutral rating on the shares.
As of September 2, Rio Tinto Group (NYSE:RIO) is trading at a PE multiple of 5.02 and is offering a forward dividend yield of 12.59%, which the company supports with free cash flows of roughly $15 billion.
At the end of the second quarter of 2022, 24 hedge funds were bullish on Rio Tinto Group (NYSE:RIO) and held stakes worth $1.72 billion in the mining giant. Of those, Fisher Asset Management was the most prominent shareholder, with stakes worth $905.6 million in the company.
3. Centrus Energy Corp. (NYSE:LEU)
PE Ratio as of September 2: 3.49
2. NRG Energy, Inc. (NYSE:NRG)
PE Ratio as of September 2: 2.91
NRG Energy, Inc. (NYSE:NRG) operates as an integrated power company in the United States. The company generates electricity from natural gas, coal, oil, solar, nuclear, and battery storage. NRG Energy, Inc. (NYSE:NRG) operates the South Texas Nuclear Generating Station. The company has a strategic partnership with Toshiba Corporation (OTC:TOSYY) by which the two companies jointly develop additional nuclear components at the facility. Shares of NRG Energy, Inc. (NYSE:NRG) have gained 9% over the past six months, as of September 2.
On August 4, NRG Energy, Inc. (NYSE:NRG) announced strong earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.16 and generated a revenue of $7.28 billion, up 39% year over year.
NRG Energy, Inc. (NYSE:NRG) is trading at a discount to its intrinsic value. As of September 2, the stock has a price-to-earnings ratio of 2.91 and is offering a forward dividend yield of 3.39%, which the company supports with free cash flows of roughly $3 billion.
At the close of Q2 2022, 29 hedge funds held stakes in NRG Energy, Inc. (NYSE:NRG) worth $1.34 billion. This is compared to 31 positions in the previous quarter with stakes worth $1.54 billion.
As of June 30, Pzena Investment Management owns more than 16 million shares of NRG Energy, Inc. (NYSE:NRG) and is the largest shareholder in the company. The investment covers 2.82% of the fund’s 13F portfolio.
1. Yellow Cake plc (OTC:YLLXF)
PE Ratio as of September 2: 1.79
Yellow Cake plc (OTC:YLLXF) is a young uranium company that is involved in the purchase and holding of uranium oxide concentrates. The company stores its uranium concentrates at facilities in Canada and France. Yellow Cake plc (OTC:YLLXF) was founded in 2018 and is based in Jersey.
Yellow Cake plc (OTC:YLLXF) is a low-risk play in the uranium sector since the company is not ridden with mining costs and challenges, and is rather an investment company that buys and holds uranium, a key element used in nuclear reactors. Yellow Cake plc (OTC:YLLXF) has grown its assets to 18.8 million pounds of uranium, up from 9.3 million pounds in November 2020.
Yellow Cake plc (OTC:YLLXF) is expected to capture more market share as governments around the world increase their spending on nuclear energy infrastructure. As of September 2, Yellow Cake plc (OTC:YLLXF) has gained 5.63% year to date and is trading at a PE multiple of 1.79.
You can also take a look at 10 Best Renewable Energy Stocks to Buy Now and 10 Best Renewable Energy Stocks to Buy According to Hedge Funds.
