Focusing on Nuclear Energy Stocks
- Nuclear energy is considered a low-carbon option, making it a key player in meeting global climate goals. Many countries are investing in nuclear energy to reduce reliance on fossil fuels and foreign energy imports
- Demand in nuclear power is not going to slow anytime soon, given the growth in AI data centers and bitcoin mining operations.
- Technological advancements in nuclear power could revolutionize the industry such as innovations like Small Modular Reactors (SMRs) and advanced reactor designs.
Nuclear energy stocks caught interest again in 2024 but the sector comes with a mix of risks and rewards depending on global energy trends, regulations, and technological advancements.
Vistra (VST) skyrocketed over 250% last year and is up 20% this year. Meanwhile, Constellation Energy (CEG) nearly doubled in 2024 and has jumped another 32% in 2025. Much of the gains (and hype) came as Tech companies rapidly expanded to find the electricity needed to power its artificial intelligence (AI) ambitions.
Given America’s recent announcement to build out its artificial intelligence platform, and other countries as well, demand in nuclear power is not going to slow anytime soon, given the growth in AI data centers and bitcoin mining operations. Both use immense amounts of energy but there are risks to the sector.
To start, nuclear energy is heavily regulated, and policy changes or delays in permitting can impact growth and profitability. Before 2024, Nuclear energy had declined steadily over the past decade, with 13 plants closing in the United States.
Negative public sentiment due to past accidents at Three Mile Island, Chernobyl, and Fukushima have influenced political and business decisions in the minds of consumers, insurers and regulators.
The pause of renewable energy such as solar and wind by the new White House administration could lessen the competition for nuclear energy as a clean power source. However, building and maintaining nuclear power plants require significant investment, making companies vulnerable to financing challenges
With that said, the good news is that nuclear energy is considered a low-carbon option, making it a key player in meeting global climate goals. Many countries are investing in nuclear energy to reduce reliance on fossil fuels and foreign energy imports.
Additionally, the technological advancements in nuclear power could revolutionize the industry such as innovations like Small Modular Reactors (SMRs) and advanced reactor designs. There are no current operating SMRs, but a number of companies are developing the technology and Amazon.com (AMZN), Alphabet (AMZN) and Oracle (ORCL) have all announced investments in the technology.
Here are a few other stocks in the sector to watch for 2025. Cameco (CCJ) is leading uranium producer with strong global demand. The company benefits from long-term contracts and rising uranium prices but the company has missed earnings estimates the past four quarters and five over the past six quarters.
Needless to say, earnings on February 20th will be closely watched and there could be a turnaround story if Cameco issues a beat-and-raise forecast. Wall Street is expected a profit of 23 cents a share on revenue of $755 million.
Shares have recently been hovering around support at the 200-day moving average just below $50 with the 50-day moving average showing signs of rolling over. A move below the recent yearly low at $46.54 could spark downside pressure towards the low $40’s. A move back above key resistance at $52 would be slightly bullish.
Brookfield Renewable Partners (BEP) is primarily a renewable energy company but invests in nuclear energy projects through partnerships and acquisitions. The company recently reported better-than-expected earnings but still lost money on sox cents a share and missed on revenue.
Shares recently made a double-bottom at the $20 level and prior support from last April. The 50-day moving average remains in a downtrend after falling below the 200-day moving average to start January while forming a death-cross. This typically confirms lower lows and it might be best to wait another quarter to see if the fundamentals have improved.
Fluor Corporation (FLR) provides engineering and construction services for nuclear plants and is involved in developing small modular reactor technology. Shares have also struggled with support at the 200-day moving average and the $48 level.
A close above $50 would be slightly bullish with a bigger hurdle to clear at $52 and the 50-day moving average. A close below $46 could lead to further selling pressure down to $42-$38 and backup support levels from last June and May.
As for an exchange trade funds (ETF): VanEck Uranium and Nuclear (NLR) and Nuclear Renaissance Index (NUKZ) offer more diversity and broader ways to play the sector.
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