By MarketBeat. Originally published at ValueWalk.
With its low space requirements and low carbon emissions processing, nuclear energy in the uranium market is a great investment option. But there’s no denying the bad taste nuclear power has left in people’s mouths (who hasn’t heard of Chernobyl?) In addition, nuclear power isn’t completely renewable like wind or solar energy.
However, there are still a wide variety of reasons to invest in nuclear energy, and we’ll detail a few facts below in the next section.
Q4 2021 hedge fund letters, conferences and more
Why Nuclear Energy Stocks?
According to the International Atomic Energy Agency (IAEA), nuclear power is one of the top sources of low-carbon electricity today.
So, why invest in nuclear energy stocks? The fact of the matter is Doesn’t emit carbon, doesn’t require a lot of land (unlike solar wind farms) and doesn’t require taking into consideration seasonal or weather changes.
The U.S. has retired dozens of nuclear reactors since 1960 but the Biden administration has included nuclear power in its clean energy plan through the American Nuclear Infrastructure Act.
Countries outside the U.S. have continued to invest in nuclear power. The World Nuclear Association confirms that even more countries have continued to build more nuclear power plants and continue to invest.
The following countries have a number of reactors (and counting):
- United States: 96
- France: 58
- China: 51
- Russia: 39
- South Korea: 24
- Canada: 19
- Ukraine: 15
- Spain: 7
- Sweden: 7
- Germany: 6
There’s no denying that energy stocks have a bad reputation — nobody wants to live next door to a nuclear reactor — but there are still a lot of value and investment opportunities available. It’s a matter of looking at the net positives for the goal of getting to net zero carbon.
3 Best Nuclear Energy Stocks
Let’s take a look at some excellent nuclear energy stock picks you can benefit from.
Cameco Corporation (NYSE:CCJ)
Cameco Corporation, located in Saskatoon, Saskatchewan, Canada, provides uranium through its two segments: uranium and fuel services. It mines, mills, purchases and sells uranium concentrate. The fuel services segment refines, converts and fabricates uranium concentrate and the purchase and sale of conversion services.
Q4 net earnings were $11 million, adjusted net earnings were $23 million. Annual net loss totaled $103 million and adjusted net loss amounted to $98 million. The uranium segment has added 70 million pounds to the company’s portfolio of long-term uranium contracts, bringing it to about 185 million pounds.
As of Q4, the company had $1.3 billion in cash and cash equivalents and short-term investments and $996 million in long-term debt. In addition, the company had a $1 billion undrawn credit facility.
The company increased its annual dividend in 2022, a dividend of $0.12 per common share was declared and will be paid to shareholders on record by the end of the year.
The company will continue the adoption of advanced digital and automation technologies to operate assets with more flexibility and will advance the commercialization and deployment of small modular reactors (SMRs) in Canada and throughout the world.
Bloom Energy Corporation (NYSE:BE)
Bloom Energy Corporation, headquartered in San Jose, California, designs, manufactures, sells and installs solid-oxide fuel cell systems for U.S. and international power generation. The Bloom Energy Server, a power generation platform, converts fuel, such as natural gas, biogas, hydrogen or a blend of these fuels, into electricity through an electrochemical process without combustion. The company powers hospitals, health care manufacturing facilities, biotechnology facilities, telecom facilities and other small companies.
Bloom Energy Corporation had revenue of $342.5 million in Q4 2021, an increase of 37.3% compared to $249.4 million in the last quarter of 2020. The company reported cash flows from operating activities of $47.2 million, compared to ($18.7) million in Q4 2020 and an ending cash balance of $615.1 million in Q4 2021, compared to $416.7 million in the Q4 of 2020.
Total year revenue reflected $972.2 million in 2021, an increase of 22.4% compared to $794.2 million in 2020 and GAAP gross margin of 20.3% in 2021, a decline of 0.6% compared to a gross margin of 20.9% in 2020.
The company launched the Bloom Electrolyzer and Hydrogen Energy Server to unlock the start of a net zero emissions future and announced an expansion of the strategic partnership with SK ecoplant Co. Ltd. to accelerate hydrogen commercialization.
Energy Fuels Inc. (NYSEAMERICAN:UUUU)
Energy Fuels Inc., headquartered in Lakewood, Colorado, extracts, recovers, explores and sells uranium and recovered uranium in the United States. The company owns and operates three projects: Nichols Ranch, Jane Dough and Hank in Wyoming. It also operates the Alta Mesa project located in Texas, as well as White Mesa Mill in Utah. It also holds interests in uranium and uranium/vanadium properties and projects in various stages of exploration, permitting and evaluation in Utah, Wyoming, Arizona, New Mexico and Colorado. Energy Fuels Inc. also works toward the recovery of thorium and potentially radium.
Energy Fuels Inc. reported a net income of $1.5 million for 2021 and as of Q4 2021, had $143.2 million of working capital, including $113 million of cash and marketable securities, $30.8 million of inventory and no short term (or long term) debt.
Uranium oxide, neodymium-praseodymium oxide and vanadium oxide prices increased, and the company has also been monitoring Russia’s invasion of Ukraine because Russia is a major contributor to uranium and nuclear fuel.
The company produced approximately 270 metric tons of mixed rare earth element carbonate and increased rare earth element recovery infrastructure. In September 2021, the company announced its establishment of the San Juan County Clean Energy Foundation and non-core conventional uranium assets to Consolidated Uranium Inc. (“CUR”), including the Daneros mine, the Tony M mine and the Rim mine. The company reported a gain on the value of this transaction of $35.7 million upping operations and results in 2021.
Invest in Nuclear Power for Big Results
You might initially prefer to shy away from investing in nuclear power. And sure, many environmental, social and governance (ESG) funds dismiss nuclear energy stocks right out of the gate. But what if we can’t get to net zero carbon without nuclear power? (Scientists agree that we need nuclear power to get there.)
Consider investing in nuclear power for, ironically, the environmental benefits!
Should you invest $1,000 in Bloom Energy right now?
Before you consider Bloom Energy, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Bloom Energy wasn’t on the list.
While Bloom Energy currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
Article by Melissa Brock, MarketBeat
Updated on
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