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Over 30 governments are considering, planning, or starting power programs according to the World Nuclear Association. Small modular reactors (SMRs) lead the resurgence of nuclear energy, and investors should consider them for their portfolios.

What are Nuclear Energy Stocks?
 

Nuclear energy stocks are publicly listed companies active in the nuclear energy sector. They primarily operate nuclear reactors to generate electricity. Alternatively, investors can participate in nuclear energy through uranium mining stocks.

Why Should You Consider Investing in Nuclear Energy Stocks?
 

Nuclear energy is a cornerstone of clean energy, and small modular reactors (SMRs) represent the industry’s most significant breakthrough. They can address the tremendous energy demand posed by data centers and AI. Forecasts estimate nuclear energy investment to exceed $2 trillion by 2050. With energy needs rising, energy security, a national security concern for most countries, and the need to lower carbon emissions, nuclear energy has a bright future.

Here are a few things to consider when evaluating nuclear energy stocks:

• Invest in nuclear energy stocks that have signed deals with some of the most notable end-users like tech giants Meta Platforms, Microsoft, Amazon, and Alphabet.
• Analyze next-generation nuclear energy stocks that can power the future with disruptive technologies, including nuclear fusion reactors.
• Mix your nuclear energy portfolio with established nuclear energy stocks, uranium miners, and next-generation players to diversify your exposure.

What are the Downsides of Nuclear Energy Stocks?
 

Uranium miners may struggle to meet demand, and uranium prices are volatile. Despite its clean energy appeal, opponents will try to derail or limit its potential due to concerns about nuclear waste and its environmental impact, which pose significant storage challenges. Nuclear energy experienced three major catastrophes: Chernobyl (1986), Three Mile Island (1979), and Fukushima (2011). So, resistance to new nuclear reactors could delay deployment.

Here is a shortlist of attractive nuclear energy stocks:

• Energy Fuels (UUUU)
• Ur-Energy (URG)
• NexGen Energy (NXE)
• Denison Mines (DNN)
• Uranium Energy (UEC)

An Update on Our Previous Best Nuclear Energy Stocks to Buy Now
 

In our previous installment, I highlighted upside potential in Honeywell International and BWX Technologies.

Honeywell International (HON) - A long position in HON between $186.76 and $192.55.

HON rallied over 6% before retreating, but I keep holding it, as I rank it among the best-diversified stocks in this sector.

BWX Technologies (BWXT) - A long position in BWXT between $172.41 and $182.88.

BWXT has essentially been flat since my recommendation, but the same buy conditions remain, and I will keep it in my portfolio.

Energy Fuels Fundamental Analysis
 

Energy Fuels (UUUU) is a uranium mining and refining company that, between 2018 and 2023, accounted for more than 50% of total US uranium production. It operates the Pinyon Plain and the La Sal uranium mines and the White Mesa Uranium Mill.

So, why am I bullish on UUUU despite its nearly 50% plunge?

While the operational statistics suggest the company is in distress, UUUU has an excellent current ratio and sufficient cash on hand. I am bullish after it announced that it produced 11% more finished uranium products in 2025, or 1.6 million pounds, and aims to boost production to 2.0 million pounds in 2026. I am equally bullish on its recent announcement that it passed the 99.9% purity dysprosium oxide quality check for a major permanent magnet manufacturer.
 

The UUUU price-to-earnings (P/E) ratio is unavailable. By comparison, the P/E ratio for the S&P 500 is 29.47.

The average analyst price target for UUUU is $23.06. This suggests excellent upside potential with decreasing downside risks.

Energy Fuels Technical Analysis
 

• The UUUU D1 chart shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
• It also shows Energy Fuels breaking out above its horizontal support zone.
• The Bull Bear Power Indicator is bullish with an ascending trendline.

My Call on Energy Fuels
 

I am taking a long position in UUUU between $14.30 and $15.35. Its position in the US uranium refining market, and encouraging news on rare earths, drive my bullish bias.

• UUUU Entry Level: Between $14.30 and $15.35
• UUUU Take Profit: Between $23.06 and $24.34
• UUUU Stop Loss: Between $10.41 and $10.97
• Risk/Reward Ratio: 2.25

Ur-Energy Fundamental Analysis
 

Ur-Energy (URG) is a uranium recovery and processing company that also explores and develops uranium mineral properties.

So, why am I bullish on URG after it cratered by over 50%?

I like Ur-Energy’s low-cost uranium production, and the company announced the closing of its $120 million 4.75% Convertible Senior Notes due 2031 to increase production at its flagship Lost Creek mine and finalize construction at its Shirley Basin project. Positive analyst coverage, including buy ratings and increased price targets, adds to the bullish narrative. Insider net buying has also increased over the past twelve months, and I am upbeat on its 2026 prospects.
 

The URG price-to-earnings (P/E) ratio is unavailable. By comparison, the P/E ratio for the S&P 500 is 29.47.

The average analyst price target for Ur-Energy is $2.20. It suggests excellent upside potential with reasonable downside risks.

Ur-Energy Technical Analysis
 

• The URG D1 chart shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
• It also shows Ur-Energy inside a bullish price channel.
• The Bull Bear Power Indicator is bullish with an ascending trendline.

My Callon Ur-Energy
 

I am taking a long position in Ur-Energy between $1.36 and $1.45. While operational statistics are not encouraging, except for its capital position, recent developments, including the increase in uranium prices, point towards a promising 2026 for this under-the-radar nuclear stock.

• URG Entry Level: Between $1.36 and $1.45
• URG Take Profit: Between $2.20 and $2.35
• URG Stop Loss: Between $1.00 and $1.11
• Risk/Reward Ratio: 2.33

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