In this article we discuss the 10 best nuclear stocks to buy now.

The role of nuclear energy in the global energy transition is often misunderstood. This is because there is a fierce debate over the environmental impact of nuclear power plants in the long-run, even though they represent the most convenient transition option in a switch away from coal and fossil fuels. According to a report by the International Energy Agency, if the global energy transition proceeds with a precipitous decline in nuclear power generation, the transition will be more challenging, more risky, and $500 billion more expensive. 

The agency has called on countries to double nuclear power generation in a bid to achieve net zero emissions targets by 2050, even as global nuclear power generation remains on track to fall from 10% of global output to 3% by 2050. The agency also claims that nuclear life-extensions are generally cost-competitive with other power generation sources, including new wind and solar capacity. The agency has claimed that policymakers around the world are recognizing this and nuclear energy is poised for a comeback in the future. 

The status of the nuclear industry in the United States presents an interesting case study in the global context of the sector. At the end of last year, there were 93 operating commercial nuclear reactors at 55 nuclear power plants in 28 states around the country. The average age of these reactors is 40 years and the latest came into service in 2016, more than 20 years after the previous one. The US nuclear capacity peaked in 2012, according to data from the Department of Energy, when there were 104 operating nuclear reactors. 

The data indicates that even though the US has seen the meteoric rise of renewable energy giants like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR) in the past few years, nuclear companies have still not arrived to the party. Policymakers blame the US government for not developing frameworks that facilitate the sector and pushing policies that increase construction costs of nuclear plants. Calls for the reversal of nuclear phaseout goals in Europe and Asia are growing in the US as well. 

Even though market experts paint a bright uranium future, the demand for the precious resource in the coming months and years will likely depend on several factors, including the number of new uranium-related projects, the amount of time it takes to complete those already under construction, as well as the reactors that are closed down. Supply constraints that have sprung up because of the pandemic have pushed uranium prices to new highs in recent months, and this increase is likely to persist till 2023. 

Our Methodology

The companies that operate in the nuclear sector were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Nuclear Stocks to Buy Now

10. Uranium Royalty Corp (NASDAQ:UROY)

Number of Hedge Fund Holders: 2     

Uranium Royalty Corp. (NASDAQ:UROY) operates as a pure-play uranium royalty company. In early September, the company announced that it had renewed an at-the-market equity program that allows it to distribute up to $40 million worth of common shares to the public. The firm said that the offered shares under the program will be sold at the prevailing market price at the time of sale. The firm aims to use the net proceeds to finance the acquisition of additional royalties, streams, physical uranium, and similar interests, as well as working capital. 

Uranium Royalty Corp. (NASDAQ:UROY) was founded in 2017 and is based in Canada. It has a market capitalization of more than $304 million. It manages a portfolio of geographically diversified uranium interests. 

At the end of the second quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $2.7 million in Uranium Royalty Corp. (NASDAQ:UROY), compared to 5 the preceding quarter worth $5.8 million.

Just like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Uranium Royalty Corp. (NASDAQ:UROY) is one of the stocks that smart investors should monitor. 

9. Lightbridge Corporation (NASDAQ:LTBR)

Number of Hedge Fund Holders: 2 

Lightbridge Corporation (NASDAQ:LTBR) engages in the design and development of nuclear fuel technology. In mid-August, the firm announced that it had been granted a patent in Korea surrounding the fuel assembly design of the firm for use in CANDU-type reactors. The new design includes metallic fuel rods arranged into a mixed grid pattern that includes a rectangular grid pattern and a triangular grid pattern. Seth Grae, the CEO of the firm, said on the occasion that Korea was a huge market for the firm. 

Lightbridge Corporation (NASDAQ:LTBR) posted earnings for the second quarter of 2022 on July 27, reporting losses per share of $0.14. The cash and cash equivalents over the period were $29.3 million, compared to $24.7 million at the end of December 2021. 

At the end of the second quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $151,000 in Lightbridge Corporation (NASDAQ:LTBR), compared to 1 the preceding quarter worth $123,000. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Lightbridge Corporation (NASDAQ:LTBR), with 19,635 shares worth more than $92,000. 

8. Ur-Energy Inc. (NYSE:URG)

Number of Hedge Fund Holders: 3 

Ur-Energy Inc. (NYSE:URG) engages in the acquisition, exploration, development, and operation of uranium mineral properties. The firm has interests in 12 projects that are based in the United States. One of the flagship properties in the country is the Lost Creek project. This comprises almost 1,800 of unpatented mining claims and three Wyoming mineral leases covering an area of 48,000 acres located in Wyoming. The company was founded in 2004 and is headquartered in Colorado.

Ur-Energy Inc. (NYSE:URG) posted earnings for the second quarter of 2022 on August 2, reporting losses per share of $0.03, missing analyst estimates by $0.01. At the end of June, the firm had cash and cash equivalents of $43.3 million. 

At the end of the second quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $22 million in Ur-Energy Inc. (NYSE:URG), compared to 5 in the preceding quarter worth $15 million. Among the hedge funds being tracked by Insider Monkey, Cayman Islands-based firm CQS Cayman LP is a leading shareholder in Ur-Energy Inc. (NYSE:URG), with 10 million shares worth more than $11 million. 

7. Uranium Energy Corp. (NYSE:UEC)

Number of Hedge Fund Holders: 8     

Uranium Energy Corp. (NYSE:UEC) engages in exploration, pre-extraction, extraction, and processing uranium and titanium. In late August, the firm announced that it had completed a deal to purchase UEX Corp. The deal creates the largest diversified North American-focused uranium company. The company still has no operations and generates revenue from selling uranium from the purchased uranium inventory. The firm is based in Texas and was founded in 2003. It employs close to 50 people. 

On June 15, Canaccord analyst Katie Lachapelle maintained a Speculative Buy rating on Uranium Energy Corp. (NYSE:UEC) stock and increased the price target to $6 from $5.5, noting that the company could surface long-term value from acquired assets. 

At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $32 million in Uranium Energy Corp. (NYSE:UEC), compared to 12 in the previous quarter worth $39 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Driehaus Capital is a leading shareholder in Uranium Energy Corp. (NYSE:UEC), with 2.9 million shares worth more than $9 million. 

6. Energy Fuels, Inc. (NYSE:UUUU)

Number of Hedge Fund Holders: 9   

Energy Fuels, Inc. (NYSE:UUUU) engages in the extraction, recovery, exploration, and sale of conventional and on site uranium recovery. On August 5, the company posted earnings for the first half of 2022, reporting losses per share of $0.21. The revenue over the period was $9.4 million, up over 1,060% compared to the revenue over the same period last year. The firm is based in Colorado and was founded in 1987. The firm owns and operates nuclear projects in Wyoming, Texas, and Utah. 

On July 28, Canaccord analyst Katie Lachapelle initiated coverage of Energy Fuels, Inc. (NYSE:UUUU) stock with a Speculative Buy rating and a price target of C$10, noting the firm was on the path to becoming a leading multi-commodity critical mineral company. 

At the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $19 million in Energy Fuels, Inc. (NYSE:UUUU), compared to 15 the preceding quarter worth $37 million.

In addition to Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Energy Fuels, Inc. (NYSE:UUUU) is one of the stocks that hedge funds are keeping an eye on. 

5. Denison Mines Corp (NYSE:DNN)

Number of Hedge Fund Holders: 12    

Denison Mines Corp (NYSE:DNN) engages in the acquisition, exploration, development, extraction, processing, selling, and investing in uranium properties. On August 4, the company posted earnings for the second quarter of 2022, reporting earnings per share of C$0.02. The revenue over the period was C$6.8 million, up over 47% compared to the revenue over the same period last year. The firm is based in Toronto and was founded in 1997. The firm owns and operates nuclear projects in the northern Saskatchewan region. 

On August 24, TD Securities analyst Craig Hutchison resumed coverage of Denison Mines Corp (NYSE:DNN) stock with a Speculative Buy rating and a price target of C$2.25, noting that the firm would benefit from rising uranium prices in the coming years. 

At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $21 million in Denison Mines Corp (NYSE:DNN), compared to 16 in the previous quarter worth $40 million.

4. NexGen Energy Ltd. (NYSE:NXE)

Number of Hedge Fund Holders: 13  

NexGen Energy Ltd. (NYSE:NXE) is an exploration and development stage company engaged in the acquisition, exploration, and development of uranium properties. One of the premier projects of the firm is the Rook I project. It comprises 32 contiguous mineral claims totalling an area of 35,065 hectares. It is located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver and has a market capitalization of more than $2.2 billion. 

In late June, NexGen Energy Ltd. (NYSE:NXE) had submitted the draft environmental impact statement for the Rook I project to the Saskatchewan Ministry of Environment and Canadian Nuclear Safety Commission. 

At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $64 million in NexGen Energy Ltd. (NYSE:NXE), compared to 15 in the preceding quarter worth $17 million.

3. BHP Group Ltd. (NYSE:BHP)

Number of Hedge Fund Holders: 19      

BHP Group Ltd. (NYSE:BHP) operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The firm is one of the few uranium stocks with an excellent dividend profile. The company has consistently paid a dividend to shareholders for the past thirteen years. In the past two years, these payouts have registered consistent growth as well. In late August, BHP Group Ltd. (NYSE:BHP) declared a semi-annual dividend of $3.50 per share, an increase of 16% from the prior dividend. 

On August 17, investment advisory Credit Suisse maintained a Neutral rating on BHP Group Ltd. (NYSE:BHP) stock and raised the price target to GBP 2,300 from GBP 2,200. Analyst Danielle Chigumira issued the ratings update. 

At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in BHP Group Ltd. (NYSE:BHP), compared to 19 in the preceding quarter worth $2.2 billion.  

In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group Ltd. (NYSE:BHP) was one of them. Here is what the fund said:

“Our purchase of Australian mining company BHP Group Ltd. (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”

2. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 24    

Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. On September 13, the company announced that it had signed an agreement with Volvo to decarbonize operations under which the former will supply responsibly sourced products including lithium, low-carbon aluminum, copper, and metallics to the latter. These will help the mining giant decarbonize operations by piloting the sustainable autonomous hauling solutions.

On August 16, investment advisory Morgan Stanley maintained an Equal Weight rating on Rio Tinto Group (NYSE:RIO) stock and lowered the price target to GBP 5,900 from GBP 5,990. Analyst Alain Gabriel issued the ratings update. 

At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Rio Tinto Group (NYSE:RIO), compared to 26 the preceding quarter worth $2.5 billion.

1. Cameco Corporation (NYSE:CCJ)

Number of Hedge Fund Holders: 40   

Cameco Corporation (NYSE:CCJ) produces and sells uranium. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.18, beating estimates by $0.17. The revenue over the period was $588 million, up over 55% compared to the revenue over the same period last year, beating estimates by $174 million. The company was founded in 1987 and is based in Canada. It has a market capitalization in excess of $12 billion as of September 13. 

On August 17, GLJ Research analyst Gordon Johnson maintained a Buy rating on Cameco Corporation (NYSE:CCJ) stock and raised the price target to C$48.40 from C$37.86, noting that the secondary supply of uranium will fall materially in 2023 due to overfeeding. 

At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $477 million in Cameco Corporation (NYSE:CCJ), compared to 43 in the preceding quarter worth $751 million. 

In its Q1 2021 investor letter, Driehaus Capital, an asset management firm, highlighted a few stocks and Cameco Corporation (NYSE:CCJ) was one of them. Here is what the fund said:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco Corporation (NYSE:CCJ) significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”

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Disclosure. None. 10 Best Nuclear Stocks to Buy Now is originally published on Insider Monkey.