We recently published an article titled Trade Tensions Weigh Heavily on 10 Stocks. In this article, we are going to take a look at where Uranium Energy Corp. (NYSEAMERICAN:UEC) stands against the other stocks.
The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s imposition of additional 10-percent tariffs on China, and the resumption of 25-percent taxes on Mexico and Canada.
The tech-heavy Nasdaq posted the biggest losses, down 2.64 percent, followed by the S&P at 1.76 percent and the Dow Jones at 1.48 percent.
According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10 percent tariff on goods from China.
The overall sentiment spilled into the performance of 10 companies, which on Monday lost as high as double digits.
To come up with Monday’s top losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A mining worker in a hard hat and coveralls hammering away at the uranium rich walls of the mine.
Uranium Energy Corp. (NYSEAMERICAN:UEC)
Uranium Energy Corp. (NYSEAMERICAN:UEC) fell by 12.14 percent on Monday to close at $4.92 apiece as investors sold off positions to mitigate risks from the growing trade tensions between the United States and Canada.
Uranium Energy Corp. (NYSEAMERICAN:UEC), which holds various uranium projects in both the US and Canada, stand to hurt from higher import prices and possible lower demand as a result of the growing trade war between the two economies.
Canada is currently US’ largest uranium producer, delivering 27 percent of its total supply, followed by Australia and Kazakhstan with 22 percent of deliveries each, according to the US Energy Information Administration.
Late last month, a Canadian uranium miner and producer already signaled that prices for US customers could rise by 10 percent if Trump’s tariff threats were to be implemented.
Overall UEC ranks 8th on our list of Monday’s top losers. While we acknowledge the potential of UEC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UEC but 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.