Why These Energy Stocks are Gaining This Week

6. Centrus Energy Corp. (NYSE:LEU)

Share Price Gains Between Dec. 12 and Dec. 19: 5.12%

Centrus Energy Corp. (NYSE:LEU) is a trusted supplier of nuclear fuel and services to the nuclear energy industry.

Centrus Energy Corp. (NYSE:LEU) soared on December 19 when the company announced that it had begun domestic centrifuge manufacturing to support its commercial LEU (Low-Enriched Uranium) enrichment activities at its facility in Piketon, Ohio. The new enrichment capacity is expected to come online in 2029 and will help meet the company’s $2.3 billion backlog in contingent LEU sales contracts with the US and international customers. Moreover, the project is in line with the Trump administration’s strategic efforts to accelerate domestic production and enrichment of uranium and reduce reliance on imports.

Amir Vexler, CEO and President of Centrus Energy Corp. (NYSE:LEU), stated:

“We are excited to announce the official commencement of our industrial-scale centrifuge manufacturing build for commercial LEU enrichment. We make this announcement after carefully evaluating the business’ internal and external progress as well as its future prospects and many competitive advantages. These include the significant progress in building our supply chain; the advancement across the many available avenues to acquire low-cost of capital to support our build, including imminent DOE funding announcements; and, evaluating the progress in our internal manufacturing capabilities. This historic step demonstrates Centrus’ commitment to meeting our growing backlog of contingent commercial LEU customer contracts. Reclaiming American nuclear leadership on the global stage will catalyze additional private investment and enable further expansion as the market continues to grow. Uranium enrichment in Ohio has a big future, and this is just the beginning.”

Following the development, Evercore ISI reiterated its ‘Outperform’ rating and $390 price target on shares of Centrus Energy Corp. (NYSE:LEU) on December 19, calling the news a ‘clear sign’ that the company is ready to act on its ‘first-mover advantage’.