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10 Best Uranium Stocks To Buy

In this article, we discuss the 10 best uranium stocks to buy. If you want to read about some more uranium stocks, go directly to 5 Best Uranium Stocks To Buy.

Uranium has become one of the most sought-after commodities in the world in the past few years as the transition away from fossil fuels towards cleaner sources of energy requires stop-gap measures to fill energy needs, and uranium is the easiest answer to these problems for many countries. Before diving into the financial outlook for the precious resource, it is important for investors to have a basic understanding of what uranium is and where it comes from. This would help in making better investment choices. 

Uranium is a naturally occurring element with an average concentration of 2.8 parts per million in the Earth’s crust. Uranium is also present in oceans around the globe but in very low concentrations. It is assigned the chemical symbol U on the periodic table of elements. A uranium atom has 92 protons and 92 electrons. Uranium has the highest atomic weight of all naturally occurring elements. It has been used as a huge source of concentrated energy for a long time. It is more abundant than gold, silver or mercury. 

Over the last two years, uranium inventories have declined rapidly. Many factors have contributed to this decline, including the production decline because of the COVID-19 pandemic, strategic acquisitions by other uranium companies to support future project financing efforts, and overall market volatility. In addition, the emergence of the Sprott Physical Uranium Trust has also had a huge impact. The trust purchased more than 24 million pounds U3O8 in 2021, or about 25% of all spot purchases. 

Through August 2022, the trust has already purchased an additional 16 million pounds U3O8 in the market. Despite heavy political uncertainty, which resulted in a dramatic increase in uranium prices, the trust has continued to make purchases, which means the prices will likely stay high in the coming years as the trust sheds this inventory. Geopolitical events, like the civil unrest in Kazakhstan and the Russian invasion of Ukraine, resulted in prices increasing from $43.00 to a peak of $63.75 in April this year. 

Since then, the market has cooled down a bit. According to a recent survey, most of the asset classes rebounded in October 2022 following the painful September depletion. The U3O8 uranium spot price climbed 8.32% in October, rising from $48.25 to $52.27 per pound. Comparatively, the broader material markets gained just 1.67%. According to a recent report, US equity markets gained 8.10% as measured by the S&P 500 Index, and US bond markets lost ground on the back of rising inflation and the hawkish Federal Reserve. 

In October 2022, the uranium spot price climbed by 24.12%, making it one of the best-performing asset classes. A yearly report on uranium mining equities also posted positive numbers in October, along with the Global Uranium Mining Index gaining 3.11% for the month. Uranium stocks have competed with the performance of top energy giants like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP) this year. 

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. 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.

Our Methodology

The companies that have upcoming growth catalysts and operate in the uranium and minings sector were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. 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.

Best Uranium Stocks To Buy

10. Lightbridge Corporation (NASDAQ:LTBR)

Number of Hedge Fund Holders: 2  

Lightbridge Corporation (NASDAQ:LTBR) designs and develops nuclear fuel technology under the Lightbridge Fuel name. On July 20, Curio announced signing a Memorandum of Understanding with Lightbridge Corporation as an industry partner and potential off-taker of products produced through Curio’s TRUfuel technology. On October 31, Lightbridge Corporation announced the earning report for the third quarter of 2022. The losses per share were $0.18. Cash and cash equivalents were $31.3 million on September 30, 2022, compared to $24.7 million on December 31, 2021, an increase of $6.6 million. 

At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $124,000 in Lightbridge Corporation (NASDAQ:LTBR), compared to 2 in the preceding quarter worth $151,000. 

Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Lightbridge Corporation (NASDAQ:LTBR) with 14,945 shares worth more than $68. 

Just like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Lightbridge Corporation (NASDAQ:LTBR) is one of the most exciting buys in the energy sector. 

9. Uranium Royalty Corp. (NASDAQ:UROY)

Number of Hedge Fund Holders: 3     

Uranium Royalty Corp. (NASDAQ:UROY) operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. On November 29, the shares of Uranium Corp rose 5.1% after the company said that it elected to receive royalty proceeds from the recently re-started McArthur River mine through the delivery of physical uranium. The company added that it will provide maximum value for shareholders. The project plans to produce 15M lbs/year of U3O8 from the operations starting in 2024. The royalty interests form a part of Orano’s 30.195% ownership interest in the project.

At the end of the third quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $2.9 million in Lightbridge Corporation (NASDAQ:LTBR), compared to 2 in the preceding quarter worth $2.8 million.

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. On August 9, Ur-Energy Inc. revealed that it has signed a multi-year sales agreement with a leading US nuclear utility to supply uranium produced from a project owned and operated by the Company’s US subsidiaries, including Lost Creek. On December 19, Ur-Energy declared that it has expanded a previously announced agreement. This brought its total sales quantity of uranium under contract to 600,000 pounds per year.

At the end of the third quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $11.8 million in Ur-Energy Inc. (NYSE:URG), compared to 3 in the preceding quarter worth $22.8 million. 

Among the hedge funds being tracked by Insider Monkey, Washington-based firm CQS Cayman LP is a leading shareholder in Ur-Energy Inc. (NYSE:URG) with 10.8 million shares worth more than $11.7 million. 

7. 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 in situ uranium recovery in the United States. On November 14, Energy Fuels announced it had agreed to sell its Alta Mesa in-situ recovery project to enCore Energy, a US domestic uranium developer focused on becoming a leading In-Situ Recovery (ISR) uranium producer, for $120 million with $60 million upfront and $60 million in a secured convertible note payable in two years from the closing, paying 8% annual interest.

On November 16, Canaccord analyst Katie Lachapelle maintained a Speculative Buy rating on Energy Fuels Inc. (NYSE:UUUU) stock and lowered the price target to C$11.50 from C$12.  

At the end of the third quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $19.7 million in Energy Fuels Inc. (NYSE:UUUU), compared to 9 in the preceding quarter worth $19.8 million. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Driehaus Capital is a leading shareholder in Energy Fuels Inc. (NYSE:UUUU) with 1.2 million shares worth more than $7.5 million. 

6. Uranium Energy Corp. (NYSE:UEC)

Number of Hedge Fund Holders: 11    

Uranium Energy Corp. (NYSE:UEC) engages in the exploration, pre-extraction, extraction, and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. On October 17, Uranium Energy’s shares were up along with other uranium mining companies like Denison and Cameco in trading after Bloomberg reported that Germany will extend the life of all three of its nuclear power plants until mid-April 2023 in the face of an unprecedented energy crisis. 

On October 19, H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Uranium Energy Corp. (NYSE:UEC) stock and raised the price target to $8.25 from $7.25.

At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $24.5 million in Uranium Energy Corp. (NYSE:UEC), compared to 8 in the previous quarter worth $32.2 million.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Driehaus Capital is a leading shareholder in Uranium Energy Corp. (NYSE:UEC) with 2.9 million shares worth more than $10.1 million. 

Along with Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Uranium Energy Corp. (NYSE:UEC) is one of the most exciting buys in the energy sector. 

Click to continue reading and see 5 Best Uranium Stocks To Buy.

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Disclosure. None. 10 Best Uranium Stocks To Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…