How to Invest in Uranium Updated 2023

Unfortunately, no other power source features the energy density of nuclear facilities. However, there are concerns whether the uranium market can continue on this growth path. The concerns center around miners shelving new projects and scaling back operations. These practices, from the era of depressed prices, still haunt the market.

Cameco’s revenues had fallen from $1.5 billion in 2018 to a low of just $1.2 billion in 2021 and profits sagged as well. However, a full-on revival is underway, with analysts projecting that Cameco’s revenues will leap to $1.8 billion in 2023 and $2.1 billion. Demand was already exceeding supply, and a recent coup in the uranium-producing country of Niger could fuel further upside for both the price of uranium and CCJ stock. BWXT stock recently rallied to 52-week highs thanks to an earnings report where top-line revenue growth dramatically exceeded analyst expectations.

Their primary goal is to hold uranium assets and achieve appreciation through increases in the uranium price. Energy Fuels is the largest U.S.-based producer of uranium and vanadium (a rare earth metal). It has two facilities in Utah and Colorado, with a total licensed capacity to produce up to 8 million pounds of U3O8 annually.

Energy Fuels (NYSEMKT:UUUU)

With the company featuring a forward yield of 13.7%, investors can lock themselves into one of the best uranium stocks to buy and get some serious passive income along the way. However, the best uranium stocks to buy now may have received a cynical boost from one Vladimir Putin. As you know, the Russian president ordered the invasion of Ukraine, which has completely unsettled the modern global order. Now, international policymakers are scrambling to find acceptable alternatives to Russian hydrocarbons.

Nearly 450 reactors can account for 4 million pounds of uranium each year. Uranium Royalty Corp. is based out of Vancouver, Canada, and seeks to grow by providing funds to uranium organizations that need them. Its biggest project is in the Shirley Basin which could eventually produce some 6.3 million pounds of uranium annually. Going strong through spring, Energy Fuels is now recovering from a share price drop through the summer. Energy Fuels also has mines and exploration operations in Wyoming, Colorado, Texas, New Mexico, and Arizona. In addition, the company has a significant market cap of $11.42 billion.

Nuclear Regulatory Commission approved the construction of four new reactors. Its main operation is the Lost Creek uranium facility in Wyoming. Haywood Securities indicates in its report that is impressed with Uranium Energy’s (UEC) production-ready assets in close proximity to its South Texas Hobson central processing plant. According to analysts at the firm, these multiple deposits could be brought into production at a relatively low capital expenditure. As demand grows and future supply becomes more uncertain, prices are finally rising again.

Cameco Corporation (NYSE: CCJ)

There are currently 10 hedge funds currently investing in the company with a total stake value of $18.1 million. This is a notable increase from last quarter’s numbers of $7.6 million. The largest hedge fund to currently be investing in the company is Schonfeld Strategic Advisors with 15,300 shares worth more than $98,000.

Prices for uranium fell sharply after the 2011 accident at Japan’s Fukushima nuclear power facility. However, demand for uranium is reviving today and is expected to continue, in part, as nations try to meet requirements of international agreements to reduce global warming. More importantly, the company is an aspirational one, currently printing no revenue. Still, with rising interest in nuclear energy, NXE could entice certain speculators.

Included in this is Bruce Power, the gargantuan nuclear power facility that produces 30% of Ontario’s power. The nuclear power business had been in a long slump following the Fukushima nuclear power plant accident. However, nuclear is enjoying a comeback now as its cheap and carbon-free energy is particularly appealing given current geopolitical and climatological trends. In particular, Russia’s invasion of Ukraine emphasized the importance of moving away from Russian-sourced fossil fuels; uranium makes a great alternative. In March, the company announced an increase of its quarterly dividend to the tune of more than $2 per share.

A slowing macro environment, during which new financing will be hard to come by, is likely to further heighten investor worries around the space. However, uranium companies are confident about navigating these challenges. Supply constraints that have sprung up as the economy slowly reopens following the pandemic have pushed uranium prices to new highs in recent weeks. However, it remains to be seen whether these gains can offset the lows of the previous year and sustain long enough to interest investors. Concerns related to the depletion of uranium at some major mining sites, as well as peak production, have also hit the industry.

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Low-grade uranium ores are primarily used in nuclear reactors as a fuel source, and are generally more difficult for ore consumers to extract their energetic content. Low-grade ore is predicted to be especially popular in the developing world, partially to help offset the steep construction and maintenance costs of keeping nuclear reactors online. Australia’s Olympic Dam mine is known to be one of the largest uranium deposits worldwide.

In this case, the company prints a three-year revenue growth rate of 12.4%, better than 52.3% of its peers. Even more impressive, the metals and mining firm posts robust profitability figures. For example, its operating margin comes in at 40.8%, better than 93.24% of sector rivals. Investors know what the company does and they like what they see. Since the start of the year, NXE shot up over 30%, making it one of the top-performing uranium stocks.

Even after the run-up in BWXT stock, shares remain attractive as it is a long-term winner with multiple angles to profit from the current nuclear renaissance. The company produces uranium and vanadium with an expansion in the rare earth business in recent years. Despite their relative health, the company has missed its recent estimates and earned $0.35 million in revenue. This has been explained to be due to the pandemic restriction hampering their mining operations.

Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm. That’s an attractive proposition to bet on if you’re willing to stomach the risks that small-cap stocks bring along. According to a Pew Research Center report, a growing share of Americans favor more nuclear power. Further, this rising trend is evident among both Democrats and Republicans. With that, below are https://1investing.in/ based on the nuclear energy resurgence. There’s a clean energy source that looks likely to be coming back.

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The possibility of increase in nuclear power adoption is reflected in the price action for uranium stocks. One of the world’s biggest mining firms, BHP is also among the best slap day 2016 for folks who want a balanced take on the nuclear power industry. According to data compiled by Statista, BHP produced approximately 3.3 million metric tons of uranium for the year ended June 30, 2021. In addition, the company mines several other relevant metals and minerals, including copper, which is significant for the electric vehicle rollout. Investing in uranium allows investors to participate and potentially profit from a perceived global shift toward nuclear power driven in part by concerns about global warming. Uranium can’t be traded like other commodities, but investors can purchase shares in a number of public companies involved in mining, processing and trading the mineral.

Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

This generates the heat in nuclear power reactors, and produces the fissile material for nuclear weapons. Depleted uranium (238U) is used in kinetic energy penetrators and armor plating. Uranium is used as a colorant in uranium glass, producing lemon yellow to green colors. The 1789 discovery of uranium in the mineral pitchblende is credited to Martin Heinrich Klaproth, who named the new element after the recently discovered planet Uranus. Eugène-Melchior Péligot was the first person to isolate the metal and its radioactive properties were discovered in 1896 by Henri Becquerel. Research by Otto Hahn, Lise Meitner, Enrico Fermi and others, such as J.

This has allowed it to maintain a position of authority in matters of nuclear power and environmental protection. But investors are confronted with the questions, which uranium stocks are the best among a lot of companies that deal with uranium. One of its holdings is the Sprott Physical Uranium Trust, a fund that invests solely in physical uranium. As mentioned, it’s been credited with helping to boost prices and has become a popular investment vehicle. When you ask people their opinion on nuclear, you’ll often hear about Three Mile Island, Chernobyl or Fukushima Daiichi.

BHP (BHP)

Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. The World Health Organization (WHO) released a 600-page report on the disaster. Based on the work of hundreds of scientists, economists and health experts, it showed the total number of radiation-related deaths is likely to be around 4,000. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article.

Now that you know how to purchase uranium stocks from a brokerage account, let’s take a look at some of the best stocks on offer right now. Keep in mind that these stocks may not be suitable for everyone – and we are not recommending any particular stock or taking the role of an analyst. A brokerage purchase is when you pay a broker to buy and sell stocks on your behalf. A direct stock purchase, however, is when you invest directly in the company’s shares, usually through its own website or by contacting it directly through email or phone.

However, since most of their projects are in the U.S., Uranium Energy could see growing uranium demand in the future as the U.S. looks to reduce its reliance on foreign imports. Although the company has yet to return a profit, its business model is drawing the attention of investors. Ur-Energy Inc. already has a healthy market cap of $291 million, showing strong potential to be making waves in the near future. This can easily happen in a uranium bull market when emotions and euphoria drive stock multiples higher. Investors who invest in UPC have the most “pure” exposure to the price of uranium without the risks of operating a mine.

When investing, it’s important to remember that stock prices can fluctuate dramatically and there’s no guarantee of a return on investment. Consider how much risk you’re willing to take on and your long-term financial goals. Next year, TC plans to spin off its slower-moving oil pipelines business. This will give investors in the remaining company a faster-moving business with more exposure to TC’s nuclear and other cleaner energy infrastructure. TRP stock has gotten hammered over the past year; as a result, shares now offer an electrifying 7.4% dividend yield. In the past 12 months, the company has provided investors with a 152% return on their investment.

Share prices have been a bit topsy turvy of late but are still over 50% higher than last year at this time. This includes Cigar Lake, which is the highest-grade uranium mine in the world and is based in Saskatchewan. If you have a finger on the pulse of the uranium market, you can try to time your sells as the uranium thesis plays out. However, the macro thesis says the price of uranium needs to move up to USD 50 or more per pound. Compared to its latest closing share price of CAD 4.11, UPC is trading at a discount of 19.9%.

• His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
• The company has some of the most extensive uranium mining operations globally, with access to a probable 450 million pounds of the mineral in various locations.
• It represents an emissions-free alternative to fossil fuels while also being more reliable than renewable energy sources such as wind and solar.
• So far this year, Uranium Energy hasn’t produced uranium but is instead buying yellowcake from the spot market in a bid to sell it later to make some money off rising uranium prices.
• The Global X Uranium ETF (URA Quick QuoteURA – Free Report) has been on fire lately.
• Nuclear energy makes up about 70% of total energy production in France.

Although it’s a controversial issue for obvious reasons, investors may nevertheless want to consider loading up on uranium stocks. Governments around the world have begun to crack down on the environmental impacts of nuclear fuel, a major point of contention being the safe storage of spent fuel with hazardous properties. What makes these stocks appealing is that most trade-in-step with the spot price of uranium. Uranium stocks may be seen as risky and frankly less seductive plays than other materials such as lithium stocks.