Investing in nuclear energy stocks can feel like navigating a complex labyrinth. But here's the kicker – it's also teeming with immense potential.
Nuclear energy stocks represent an investment into our future power needs. They're part of a solution to some of the world’s most pressing issues: climate change and sustainable development.
Understanding these stocks better could be your ticket to significant returns if you've been eyeing this space or already have your skin in the game. So let's delve deeper into the world of nuclear plants together.
Table of Contents
- The Rise of Nuclear Energy Stocks
- What are the Best Nuclear Stocks to Buy?
- 1. TC Energy
- 2. Dominion Energy
- 3. Denison Mines
- 4. Electricite de France
- 5. BHP Group
- 6. Bloom Energy Corporation
- 7. Public Service Enterprise Group
- 8. Exelon Corporation
- 9. Nuscale Power
- 10. Duke Energy Corporation
- 11. NextEra Energy, Inc.
- [BONUS] Investing in the Future: Top Nuclear Energy Stocks
- 5 Tips for Investing in Nuclear Energy Stocks
- How to Track Your Nuclear Energy Stock Investments on Wisesheets
- FAQs
The Rise of Nuclear Energy Stocks
Did you know that nuclear power is responsible for a whopping 10% of global electricity generation? And it doesn't stop there.
Nuclear energy fuels have been playing the role of an unsung hero in our fight against climate change, helping us avoid over 20% of global carbon emissions in the past five decades. You can read more about this in the International Energy Agency's report here.
By 2050, we expect the nuclear power generating capacity to soar to around 873 gigawatts. This upward trend paints a promising picture for investors eyeing stocks related to uranium mining and fuel processing or reactor construction and operation – essentially anything linked with the nuclear industry.
If you're wondering where all these numbers are heading, brace yourself because they're going northward.
What are the Best Nuclear Stocks to Buy?
Investing in nuclear energy stocks can be a strategic move for those looking to capitalize on the growing demand for clean and reliable power sources. Nuclear energy not only plays a crucial role in reducing greenhouse gas emissions but also offers a stable energy supply.
However, it's important to choose the right stocks to invest in. Here are some of the best nuclear stocks to consider for your investment portfolio.
- TC Energy
- Dominion Energy
- Denison Mines
- Electricite de France
- BHP Group
- Bloom Energy Corporation
- Public Service Enterprise Group
- Exelon Corporation
These companies are involved in various aspects of the nuclear energy sector, from power generation to uranium mining, making them well-positioned for potential growth and sustainability in the evolving energy landscape.
Let's delve into these promising nuclear energy stocks:
1. TC Energy
Headquartered in Calgary, TC Energy (TSE: TRP) holds a diverse array of energy assets encompassing oil pipelines, natural gas pipelines, and power facilities across Canada, the United States, and Mexico.
The company possesses a 48% ownership stake in Bruce Power, which comprises 11 nuclear power plants situated in Ontario. Bruce Power stands as a globally esteemed nuclear operator with a history tracing back to 1967, marked by an impressive absence of significant incidents.
Significantly, these power plants play a pivotal role in supplying Ontario with around 30% of its energy, offering a cost-efficient alternative to other energy sources.
This achievement stands as a big win benefiting both consumers and the ownership.
2. Dominion Energy
Dominion Energy (NYSE:D) operates several nuclear power plants in the United States, generating clean energy for millions of homes. Alongside nuclear, the company runs coal, natural gas, and oil plants, using their earnings to expand into renewables like wind and solar.
Facing rising interest rates, Dominion is reviewing its operations and might sell assets to strengthen its finances, likely focusing on coal or oil plants.
While the nuclear sector offers growth potential, Dominion's stability as a regulated utility makes it a dependable choice for investors seeking consistent dividends.
3. Denison Mines
Denison Mines (NYSEAMERICAN: DNN) functions as a uranium exploration and development company hailing from Canada. Its operations encompass mining and the upkeep and after-closure care of mines.
The stock's appeal largely hinges on its investments across diverse uranium mining ventures. Denison holds a substantial 95% effective stake in the Wheeler River project, a flagship endeavor presently in the feasibility phase.
Additionally, the company boasts a 22.5% interest in the McClean Lake Project and a 66.9% stake in the Waterbury Lake Project. These assets exhibit significant potential for expansion in terms of output, owing to their efficiency in producing uranium at remarkably low costs.
For investors considering a long-term perspective, Denison Mines presents an intriguing opportunity.
4. Electricite de France
The European Union has recently made a notable decision, designating select nuclear and gas projects as environmentally friendly. This move grants access to cost-effective loans and state initiatives, forming part of the EU's strategy to reduce reliance on Russian oil.
Amidst this backdrop, Electricite de France (OTCMKTS: ECIFY), a French state-owned nuclear energy firm, has garnered substantial attention.
The company stands to gain from France's strong commitment to integrating nuclear power as a pivotal element of its energy agenda.
5. BHP Group
BHP's flagship endeavor, the Olympic Dam project in South Australia, is emblematic of its strategy. Beyond possessing one of the globe's largest uranium deposits, the mine boasts substantial copper reserves.
Copper holds profound significance, given its role in addressing demands related to America's modernization of its aging power grid and its transition towards sustainable technologies like solar panels, wind turbines, and electric vehicles.
The concurrent demand for uranium and copper could explain JPMorgan Chase's (NYSE: JPM) decision to upgrade BHP stock from "Neutral" to "Overweight" in July.
BHP stock trades at a forward price-to-earnings (P/E) ratio of around 11x earnings. Furthermore, for investors seeking dividends, the company's semi-annual dividend yields an attractive 5.75%.
6. Bloom Energy Corporation
Bloom Energy Corporation (NYSE: BE) specializes in the design, manufacturing, sale, and installation of solid-oxide fuel cell systems. The standout feature of the Bloom Energy Server, their power-generation platform, is its ability to convert fuels like natural gas, biogas, or hydrogen into electricity without combustion, through an electrochemical process.
The scope of their impact is wide-ranging, providing power to hospitals, healthcare product manufacturing, biotechnology facilities, telecom operations, and various small businesses. With a market capitalization of $2.6 billion, the company's shares are currently trading at $21.83.
The stock embarked on its trading journey in 2021 at $28.66 and concluded the year at $21.93, reflecting a cumulative decline of 23.5%.
As of 2022, the stock commenced trading at $21.93 and has maintained a consistent value, recently closing at $21.83.
7. Public Service Enterprise Group
Public Service Enterprise Group Incorporated (NYSE: PEG) is an energy enterprise boasting a diverse portfolio encompassing natural gas, oil, coal, solar, and nuclear power plants. This company actively manages three nuclear power plants and maintains a minor stake in two additional ones.
In the first quarter of 2023, both Point72 Asset Management and Element Capital Management acquired shares valued at $41.081 million and $3.8 million, respectively, as a holding in the portfolios of 23 hedge funds.
PEAK6 Capital Management, under the leadership of Matthew Hulsizer, also augmented its holdings in PEG by 36% as compared to the preceding quarter of 2022.
8. Exelon Corporation
Exelon CorporationExelon Corporation (NASDAQ: EXC) is a prominent American utility company overseeing a network of 21 nuclear reactors, collectively producing 17,800 megawatts of power. With a reach extending to nearly 10 million customers, the company meets the energy needs of electricity and natural gas.
In the initial quarter of the year, both Point72 Asset Management and Millennium Management augmented their positions in Exelon, increasing their stakes by 16% and 54%, respectively. Additionally, Element Capital Management, spearheaded by billionaire Jeffrey Talpins, incorporated the company into its portfolio, acquiring 120,200 shares valued at $5.035 million.
During Q1 2023, the stake of Exelon was held by 32 hedge funds, amalgamating into a combined worth of $1.12 billion.
9. Nuscale Power
Nuscale Power (NYSE:SMR) specializes in developing compact nuclear power plants, a departure from the conventional large-scale and costly nuclear facilities that often face delays. Their modular design allows for up to 60 megawatts of energy production.
Having recently secured an agreement with the U.S. Department of Energy, Nuscale is set to construct multiple nuclear reactors in Idaho, aiming for completion by 2029 and 2030. This development triggered a significant surge in the company's stock prices.
The company entered the public market via a special purpose acquisition company (SPAC) reverse merger in May, initially trading around $10 per share. The stock is currently trading at a 20% to 30% premium above its de-SPAC price.
While this might seem like an elevated valuation, those with a positive outlook on the stock's long-term prospects could consider investing in nuscale power at its current levels.
10. Duke Energy Corporation
Duke Energy Corporation (NYSE: DUK) is an American electric power company, boasting a peak generation capacity surpassing 58,000 megawatts. Within its operations, the company effectively manages 11 nuclear units, collectively capable of producing 10,700 megawatts.
In the first quarter of 2022, Citadel Investment Group, led by billionaire Ken Griffin, substantially increased its holdings in Duke by an impressive 98%. Their stake amounted to 470,502 shares, valued at $45.389 million.
Simultaneously, Jeffrey Talpins’ Element Capital Management introduced the company into its investment portfolio, acquiring 97,792 shares with an estimated value of $9.43 million.
Throughout the first quarter of 2022, Duke shares were included in the portfolios of 40 hedge funds, totalling a cumulative value of $571.786 million. This marked an increase from the previous quarter when 33 hedge funds collectively invested $495.101 million in the company's shares.
11. NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE), headquartered in Florida, operates as a utility company catering to electricity and natural gas needs. The company oversees seven operational nuclear units within its array of energy-producing assets.
During the first quarter of 2023, both Element Capital Management and PEAK6 Capital Management incorporated NextEra into their portfolios, securing 243,576 shares valued at $18.77 million and 87,113 shares worth $6.71 million, respectively.
Mario Gabelli's GAMCO Investors and Cliff Asness' AQR Capital Management expanded their investments in NextEra by 13% and 15%, respectively.
Additionally, Citadel Investment Group substantially augmented its holdings, witnessing a staggering increase of 27105%, resulting in 1.58 million shares valued at $122.102 million.
[BONUS] Investing in the Future: Top Nuclear Energy Stocks
Amid the dynamic landscape of the modern energy sector, nuclear energy stocks have emerged as a compelling investment avenue. Beyond their intrinsic value as a solution to global challenges like climate change, these stocks harbor immense growth potential.
Learn about market dynamics, key players, and why prominent top hedge fund holders are betting on this sector.
Uranium Energy
This leading nuclear stock operates across uranium mining, processing, and exploration in the U.S. and Paraguay. Notably, it holds significant undeveloped Ferro-Titanium deposits in Paraguay, used to strengthen steel.
Debt-free and highly solvent, UEC stands out with a 4.5% current ratio and 24.91% interest coverage ratio. Unlike its competitors, UEC doesn't hedge uranium production, maximizing gains from rising uranium prices.
UEC is also a top hedge fund holder, adding to its appeal to investors.
Cameco
Cameco's net income has surged from -$53.17 million to $168 million in the last three years, showcasing stability and growth potential. Benefiting from its proximity to the world's largest uranium mine in Canada. Besides mining uranium, the company operates facilities for conversion and fabrication.
With a solid net margin of 7.79%, Cameco is profitable and stands out for its stability with a low debt-to-equity ratio of 0.17. Its high current ratio of 7.75 indicates strong liquidity, making it well-equipped to manage short-term obligations and reduce investment risk.
Energy Fuels
Energy fuel extracts uranium and supplies concentrate to nuclear utilities for carbon-free energy. It also produces vanadium, enhancing steel strength for armor plates, tools, and more.
Ranked among the best nuclear energy stocks to buy, Energy Fuels boasts a remarkable net profit margin of 236.87%.
With zero debt, a sturdy 22% return on equity, and a 21% return on assets, it excels in financial management, yielding sustainable growth despite industry volatility. The company's net income surged from -$27M to $69M in 3 years.
Despite impressive growth, it remains relatively undervalued, with low price-to-earnings (P/E) and price-to-book (P/B) ratios of 14.58% and 34%, respectively.
5 Tips for Investing in Nuclear Energy Stocks
Take these pro tips with you as you embark on your investment journey with nuclear stocks.
- Analyze the Risk and Return Profile:
- Regulatory changes: Focus on licensing, permitting, decommissioning regulations, and potential changes. For example, the proposed Yucca Mountain nuclear waste repository in the U.S. faced opposition and delays, underlining the impact of regulatory decisions.
- Safety concerns: Incidents like the Chernobyl disaster and Fukushima Daiichi accident emphasize the importance of safety in this sector. Understand risks from aging plants, potential accidents, and security of nuclear materials.
- Public perception: Consider the environmental impact, potential for accidents, and radiation exposure fears.
- Financial Metrics: Look at Return on Invested Capital (ROIC) to gauge financial health.
- Have a Long-Term Perspective:
- Expect extensive development timelines and long life cycles. Your investment horizon could be 3 to 10 years or even longer. It’s suitable for those willing to ride out potential fluctuations.
- Be prepared for possible moderate to high volatility given influences like regulatory changes, safety concerns, and shifts in public perception.
- Understand the Company Management:
- Analyze management's track record and performance.
- Examine historical PE Ratios and EPS growth rates.
- Prioritize firms with strong safety records, financial stability, and a history of successful project execution.
- Stay Updated with the Regulatory Environment:
- Monitor regulatory developments, especially changes in policies, safety standards, or international agreements.
- Leverage AI tools to keep abreast of any changes.
- Evaluate Liquidity and Hidden Costs:
- Check trading volume and market depth to gauge stock liquidity.
- Be aware of any associated costs, like brokerage fees and taxes.
Related: A Lifetime Strategy For Investing: 9 Principles to Follow
How to Track Your Nuclear Energy Stock Investments on Wisesheets
Now that you have the top picks, you’ll want to keep tabs on them to see how they’re performing. Wisesheets makes this easy by letting you dump live stock price information and company financials on a Google or Excel sheet that you can access anywhere.
We’re talking
- On-demand financial statements,
- Live stock prices
- Dividend data
- And more…
Streamlining your research process to make informed decisions to make more money.
How? It's simple. Just follow these simple steps.
Tracking Company Health and Financials on Wisesheets
Understanding the financial health of a company is paramount to making well-informed investment decisions. With Wisesheets, you have at your fingertips a tool that simplifies this process, allowing you to gauge the financial stability, growth potential, and overall health of a company. Simply use the statement dump function or the functions to analyze data like this:
Use Sheets or Excel As Your Personal Investment Tracker
Once you've set up an investment google sheet, monitoring your investment performance becomes a breeze. Simply input your investment data, and the spreadsheet takes care of the rest – it's that straightforward!
Step-by-Step Guide to Stock Pricing
- Open Google Sheets.
- In Column A, list the nuclear energy stocks you want to track.
- Next, open Wisesheets and click on the WisePrice Function to fetch real-time stock prices.
This feature fetches the respective companies' current stock prices and historical data, so you compare the trends and make informed decisions
For those who prefer Excel, we've got a version of the investment tracking spreadsheet tailored for you. Download it and start tracking your investments effortlessly.
Please note that to fully leverage this template, you'll need a Wisesheets account for real-time price data integration into your spreadsheet.
To make the most of this tool, consider these useful tips
- Regular Updates: Keep your investment data up-to-date to maintain an accurate overview of your performance.
- Explore Features: Take some time to explore the spreadsheet's various features. For instance, you can visualize your investment data using the built-in charting tools.
- Excel Macros: If you're using the Excel version, explore the macros to automate certain tasks, streamlining your investment management process.
By following these tips and harnessing the power of the Wisesheets free investment tracking spreadsheet, you'll be well on your way to becoming a more successful and organized investor!
FAQs
What are the best nuclear stocks to buy?
Stocks like NextEra Energy, Cameco Corporation, Centrus Energy Corp and Constellation Energy are often considered strong choices in the nuclear energy sector.
Are nuclear energy stocks a good investment?
Nuclear energy stocks can be a good investment due to the increasing global demand for clean energy and advancements in fusion technology. However, investors should consider market dynamics and company specifics.
Why not invest in nuclear energy?
The potential risks include regulatory changes, public perception of safety issues, and waste disposal challenges. Additionally, competition from other renewable sources could impact profitability.
What nuclear company is Bill Gates investing in?
Bill Gates has been investing in a nuclear company called TerraPower. The nuclear energy company focuses on developing advanced nuclear reactor technology, including traveling wave reactors and other innovative designs aimed at providing clean and sustainable energy solutions.
Is nuclear stock renewable?
While nuclear power is not classified as a renewable energy source, it does possess recyclable attributes. Thanks to the innovative technologies developed by Orano, which are globally unparalleled on an industrial scale, up to 96% of spent nuclear fuel from reactors can be recycled.
Is nuclear power better than solar power?
Nuclear energy offers certain advantages over renewable sources in terms of reliability, greenhouse gas emissions, land utilization, and waste management. One significant edge of nuclear power lies in its reliability, as it remains dispatchable regardless of the prevailing wind or sunlight conditions.
Could nuclear energy save the world?
With its dependable nature and capacity for large-scale deployment, nuclear energy stands as a viable substitute for fossil fuel plants, effectively circumventing the need to burn fossil fuels for generating electricity.
Disclaimer: This content is for informational purposes only and not intended as investment advice.
Wisesheets assumes no liability for decisions made based on this information. Always consult with a financial professional before making investment decisions.
