The nuclear power sector encompasses companies involved in the production of nuclear energy and related technologies. This includes utilities operating nuclear plants, uranium miners, and nuclear equipment manufacturers. Nuclear power stocks represent ownership in these companies traded on public exchanges. The sector has gained renewed attention due to its potential role in reducing carbon emissions. Nuclear power offers a reliable, low-emission source of baseload electricity.
Investing in nuclear power stocks can present unique opportunities in the energy market. Nuclear plants provide consistent energy output, potentially leading to stable revenue streams for operators. The sector may benefit from increasing global focus on clean energy solutions. Some countries are expanding their nuclear capacity to meet climate goals. However, nuclear stocks also face significant challenges. The industry is heavily regulated and subject to stringent safety requirements. Nuclear accidents, though rare, can have severe consequences and impact public perception. The high costs of plant construction and decommissioning can affect profitability.
When considering nuclear power stocks, it’s crucial to understand the regulatory environment in key markets. Assess the company’s safety record and technological capabilities. Look at their position in the nuclear energy value chain. Consider the potential impact of government policies on nuclear power development. Be aware of public sentiment towards nuclear energy in regions where the company operates. Evaluate the company’s ability to manage long-term projects and associated costs. Taking all this into account, here are two nuclear power stocks to watch in the stock market right now.
Nuclear Power Stocks To Buy [Or Avoid] Today
- Centrus Energy Corporation (NYSEAMERICAN: LEU)
- Cameco Corporation (NYSE: CCJ)
Centrus Energy Corp. (LEU Stock)
Starting off, Centrus Energy Corporation (LEU) is a supplier of nuclear fuel and services for the nuclear power industry. They provide low-enriched uranium, technical solutions, and support services to utilities operating commercial nuclear reactors. Centrus is also developing advanced nuclear fuel technologies, including high-assay low-enriched uranium (HALEU).
This month, Centrus Energy announced that its subsidiary, American Centrifuge Operating, LLC (ACO), received an award from the U.S. Department of Energy. The award is for developing technology to deconvert High-Assay, Low-Enriched Uranium (HALEU) from uranium hexafluoride to uranium oxide or metal forms. This process is a crucial step in advanced nuclear fuel production. Centrus is one of six companies selected for this project. The contract has a minimum value of $2 million, with a maximum of $800 million across all awardees.
In the past month of trading, shares of LEU stock have surged by 73.11%. With that, during Wednesday morning’s trading session, Centrus Energy stock opened up 13.15%, currently trading at $68.99 a share.
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Cameco Corp. (CCJ Stock)
Second, Cameco Corporation (CCJ) is one of the world’s largest uranium producers. They are involved in the exploration, mining, refining, and conversion of uranium for nuclear energy production. Cameco operates uranium mines in Canada and Kazakhstan, and also provides fuel processing services. The company supplies uranium and fuel services to nuclear utilities worldwide.
Last month, Cameco Corp. announced its inclusion in the TSX30 2024 ranking, securing the 14th position. This annual list recognizes the top 30 performing stocks on the Toronto Stock Exchange. Cameco reported a 186% increase in its dividend-adjusted share price over the past three years. The company also noted a 210% growth in market capitalization during the same period. Cameco’s CEO, Tim Gitzel, attributed this success to increased demand for nuclear power and the company’s strategic approach.
In the last month of trading, Cameco Corp. stock has moved higher by 32.99%. Meanwhile, during Wednesday morning’s trading session, shares of CCJ stock opened higher, up 3.95% on the day, currently trading at $53.75 a share.
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