What Are Nuclear Energy Stocks?
The term “nuclear energy” is a polarizing phrase amongst those who may not understand energy use in the United States. This polarization may be due to the explosion of nuclear reactors in Fukushima, Japan, back in 2011.
While the concern is understandable, that was quite a rare situation, and since then, nuclear energy has grown in use and popularity. Did you know that in 2020, coal did not provide as much electricity as nuclear power sources did?
Natural gas is still a leader in providing energy, but nuclear is trending and making its way up the ladder of importance.
Nuclear power requires a nuclear reaction, the splitting of atoms that heat water into steam and push a turbine to create electricity.
There are other methods to create electricity with nuclear energy, such as nuclear decay, nuclear fission, and nuclear fusion reactions.
Nuclear energy is sustainable for one simple reason: They’re unlike fossil fuels in that they don’t produce direct carbon dioxide. As an alternative energy, it is a zero-carbon emissions option that is safer and cleaner for the environment. Other benefits include:
- It powers electric vehicles, supports space exploration, and supplies radioisotopes for cancer treatments.
- Nuclear technology reliably provides electricity around the clock because reactors work up to 24 hours, all day, every day.
- It generates jobs that are long-term, well-paid, and supports local communities and state and federal governments.
Which Nuclear Energy Stocks Should You Keep an Eye on?
President Joe Biden has been very clear about his determination to lower our carbon footprint by 2030. We are a power generation that needs alternatives that provide renewable energy. Part of this mission is to support the US nuclear companies that provide jobs and contribute to the communities while providing a clean energy source.
Investing in current nuclear companies will help this mission in the long term.
It goes beyond just clean energy—we can also find incredible uses for uranium in agriculture and biotechnology. We are showcasing these three energy companies, in no particular order, that are on the rise:
- Cameco Corporation (NYSE: CCJ)
- Denison Mines (NYSE: DNN)
- NexGen (NYSE: NXE)
Cameco Corporation (NYSE: CCJ)
Cameco Corporation is headquartered in Saskatchewan, Canada.
They are the second-largest producer of uranium and provide around 18% of the world’s production. They have three mining operations in Nebraska; Crow Butte. Smith Ranch-Highland, and North Butte.
Cameco’s uranium mining currently has the capacity to produce 53 million pounds of uranium.
Their past year’s uranium stock values have proven to be interesting. For most of 2020, it held steady with very few increases or drops. At the end of 2020, there was a spike that has continued to grow well into 2021.
In November of 2020, the stock reached an all-time low of $9.25 per share. A couple of weeks later, there was a jump to $12.15 per share. The all-time high occurred in early May of 2021 when share prices reached $20 each.
Demands of uranium are expected to rise indefinitely with the push for cleaner energy—and Cameco can find itself to be at the frontlines to meet the demands.
Denison Mines Corp. (NYSE: DNN)
Denison Mines Corporation is a uranium development, exploration, and production company. They are located in Saskatchewan, Canada, and have been in business since 1985.
15% of Denison Mines is owned by the Korea Electric Power Corporation. KEPC is a general electric company that is similarly committed to clean and safe energy.
Stock prices for the Canadian company are incredibly low and are considered penny stocks. In June of 2020, company stock was at $.32 per share. There was a huge jump at the beginning of 2021, with a high for the first time in February 2021 of $1.51. Growth is still occurring, and the overall increase over the past year is 145%.
We chose this stock for several reasons. Firstly, it’s incredibly affordable for those that have limited funds for a new stock option. The low share price also means that losses won’t feel as heavy as they would at higher prices.
We don’t predict any large losses at this time, which means you would be getting in on the ground floor of a company that could potentially explode with the new push for more uranium. Lastly, there is a new board of directors for 2021.
New direction or leadership is often a sign of revitalization and a catalyst for economic growth and stock performance.
Fresh eyes on the direction of this business may be a great help to boosting production, starting more mines, and exploring new locations.
NexGen Energy (NYSE: NXE)
NexGen Energy is an exploration and development company with energy fuels projects in the Athabasca Basin in Canada. They work on 209,000 hectares of land with a total of four operations.
Like their competitors, stocks started relatively even in 2020 but saw a spike in 2021. In June of 2020, we saw their overall low for the year at $1.24 per share. February of 2021 began the impressive spike in value.
Their 52-week high occurred in early May of 2021 when shares reached $4.80. Overall growth came in at 210% over the last year. At the time of publication, the market cap was $2.4 billion.
The low cost of their shares also contributes to the attractiveness for a long-term investment. What also makes them a bit more attractive is how well-funded they are and their well-versed team. They have a highly experienced team of uranium industry professionals who have proven to be successful in finding uranium deposits.
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Nuclear energy may not sound like an exciting prospect, but when you dig a little deeper into government plans and the push for cleaner energy, you can start to see why some have opted to get in on the action.
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