We recently compiled a list of the 11 Reddit Stocks with Biggest Upside Potential. In this article, we are going to take a look at where enCore Energy Corp. (NASDAQ:EU) stands against the other Redditor-approved stocks.
Paul Hickey, Bespoke co-founder, together with Dana D’Auria, Envestnet co-chief Investment Officer, joined CNBC’s ‘Closing Bell: Overtime’ on November 12 to discuss the market’s reaction to the election results and earnings. Paul Hickey believes that the AI bull market is likely to continue now.
This recent conversation centered around the key forces to watch in the current political and economic landscape, particularly in light of potential energy impacts from Ukraine, shifts in Middle Eastern policies, and possible market effects from trade policies with China. Hickey thinks that as President-elect Donald Trump’s cabinet begins to take shape, it will provide clearer insights into future expectations. He emphasized that while election results can lower barriers to the market and reduce speed bumps, their impact is often overstated. He notes that over the past 16 years, the market has shown strong performance under different administrations, with annualized returns of 16.3% during both Barack Obama’s and Donald Trump’s first terms, and 14% under Joe Biden. This consistency, according to Hickey, suggests that market returns have remained relatively stable despite varying political landscapes.
The conversation also highlighted the ongoing AI bull market, which has been broadening since the summer and is expected to continue. The S&P 500 recently closed above 6,000, reflecting positive momentum in the markets, including gains in the NASDAQ. There was a discussion about how a sweeping victory for one party could have been perceived as detrimental to equities; however, Republicans achieved this outcome and equities responded positively. To maintain this momentum, D’Auria suggested that Republicans might need to exercise more fiscal responsibility. The implication is that a single party cannot implement all its plans without consideration of fiscal implications.
D’Auria thinks that as tax cuts from 2017 are likely to be extended under Republican leadership, inflation concerns may arise due to higher tariffs and increased government spending. The Republican stance thus far has been viewed as pro-business, which is reflected in current market performance. However, a potential challenge lies ahead; she is of the idea that stocks are now being priced with expectations of a low regulatory environment. This regulatory landscape will be crucial for sustaining market growth moving forward.
As the market continues to react positively to political developments and the ongoing AI bull market, investors should consider focusing on stocks with significant upside potential.
Methodology
We sifted through Reddit threads to compile a list of 30 trending stocks with high upside potentials. We then selected the 11 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial shot of the uranium mines, demonstrating the company’s vast mineral resources.
enCore Energy Corp. (NASDAQ:EU)
Average Upside Potential as of November 11: 76.17%
enCore Energy Corp. (NASDAQ:EU) is committed to providing clean, reliable, and affordable fuel for nuclear energy as the only US uranium producer with multiple production facilities in operation. It acquires, explores, and develops uranium properties and owns several projects in key uranium-rich regions like New Mexico, Utah, South Dakota, Wyoming, and Arizona.
It reported positive financial results and operational progress for the three and nine months ended September 30. The company’s revenue reached $45 million during the nine months, driven by increasing uranium extraction and yellowcake sales. The commissioning of its second uranium processing plant, Alta Mesa, further supported its production capabilities. Revenue for Q3 2024 alone was $9.20 million.
The company successfully met its contractual obligations by delivering 530,000 pounds of yellowcake during the period, utilizing both purchased and processed uranium. Additionally, it secured its 8th uranium supply contract with a US nuclear utility, guaranteeing the delivery of 300,000 pounds of yellowcake at a favorable price point.
enCore Energy Corp. (NASDAQ:EU) projects to process over 1 million pounds of yellowcake annually by 2025. Continued supply disruptions and geopolitical tensions are also expected to contribute to a favorable contracting environment for uranium producers, positioning this company for growth.
Overall EU ranks 7th on our list of the Reddit stocks with biggest upside potential. While we acknowledge the potential of EU as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.