3 Nuclear Power Stockpiles to Buy by 2026 | Colorful fool
The increase in energy demand from hyperscalers is driving a renewed focus on reliable nuclear power.
With the global demand for energy increasing, nuclear power is one energy source that checks all the boxes. This is because it provides reliable, carbon-free power and continuously provides steady baseload power – making it the ideal solution to meet growing energy demand and carbon neutral targets.
The industry is also riding a wave of political support. At COP 23, a number of countries pledged to triple their nuclear power capacity by 2050. In the United States, nuclear capacity would have to increase to 200 gigawatts (GW) by then to meet this goal.
Advanced technologies such as small modular reactors could pave the way for industry. Meanwhile, miners and other service providers should benefit from the tailwinds of high demand and improving optics around nuclear power. If you’re intrigued by the nuclear story, here are three stocks to pick today.
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Cameco
The Cameco Company (CCJ 3.00%) is a leading provider of uranium and nuclear infrastructure in North America. The company controls significant assets in key uranium mines in Canada, as well as ownership interests in mines in Kazakhstan and mining rights to uranium deposits in Australia.
Today’s Change
(-3.00%$-2.82
Current price
$91.27
Key data points
Market capitalization
40 billion dollars
Daily range
$90.66 -$95.00
Range 52 weeks
$35.00 -$110.16
Volume
4.7 million
Avg. flight
5.2 million
Gross margin
26.65%
Dividend yield
0.19%
In addition, Cameco offers processing services, refining uranium concentrates into uranium oxide, a purified intermediate that is then converted into the final form needed for reactor fuel. Cameco operates both a refinery and a conversion facility in Ontario, Canada.
In addition, Cameco owns 49% of Westinghouse, an original equipment manufacturer (OEM) of nuclear reactor technology and a provider of aftermarket products and services to commercial companies. Brookfield Renewable Partners owns the remaining 51%.
Cameco is well diversified, with assets spanning the entire uranium value chain, from mining to refining and enrichment, as well as reactor design and services, making it a top nuclear stock today.
Energy Center
Energy Center (LEU 4.45%) provides nuclear fuel components, including low-enriched uranium (LEU), the fissile component of most nuclear fuel used worldwide. In addition, it offers enrichment and technical services to industry and the US government, including manufacturing, engineering and other specialized technical services.
Today’s Change
(-4.45%$-12.40
Current price
$266.23
Key data points
Market capitalization
5 billion dollars
Daily range
$259.00 -$287.18
Range 52 weeks
$49.40 -$464.25
Volume
1.1 million
Avg. flight
1.4 million
Gross margin
28.85%
Dividend yield
ON
Centrus currently sources its uranium from global suppliers, including the Russian entity TENEX. It currently has a waiver that allows it to import this LEU until 2027. However, Russia’s LEU ban will be fully implemented by 2028, creating an immediate need to replace 25% of the enriched uranium imported from Russia.
In the long term, Centrus aims to produce LEU and High-Enriched, Low-Enriched Uranium (HALEU) in-house using its advanced centrifuge technology. LEU is commonly used today, but HALEU could be the nuclear fuel for tomorrow’s advanced nuclear reactors. This is because it allows for compact reactor cores, improved efficiency, longer refueling cycles and greater design flexibility compared to today’s standard LEU.
Centrus will need to expand uranium enrichment capacity at its Piketon, Ohio facility. This depends on Department of Energy funding, private investment and long-term customer commitments. It is uniquely positioned as the only Nuclear Regulatory Commission (NRC) licensed HALEU manufacturer for both commercial and national security applications.
Centrus is a top source of uranium, but the real advantage is its transition to producing LEU and HALEU for the advanced reactors of tomorrow.
The energy of the constellations
The energy of the constellations (CEG 2.39%) provides services and is the largest nuclear operator in the United States with a fleet capacity of 22 GW. The company has also been operating its plants at an average nuclear capacity factor of 94.6% over the past several years, beating the industry average and resulting in higher revenue per reactor for Constellation.
Today’s Change
(-2.39%$-8.80
Current price
$359.82
Key data points
Market capitalization
112 billion dollars
Daily range
$357.12 -$370.07
Range 52 weeks
$161.35 -$412.70
Volume
2M
Avg. flight
2.6 million
Gross margin
7:30 p.m%
Dividend yield
0.43%
What makes Constellation attractive are its energy assets across key regions in the US. This includes the western half of the PJM region (a major U.S. electricity market and transmission system covering 13 states and Washington, DC, serving more than 65 million people) and the MISO region (which includes the Midwest and Plains regions and parts of the South). It recently expanded its presence in California with the $27 billion acquisition of Calpine.
Given its slew of assets, it’s no surprise that hyperscalers are turning to Constellation to secure long-term power purchase agreements (PPAs). Last year, it concluded a 20-year PPA with Microsoft and restarts Three Mile Island Unit 1 (renamed Crane Clean Energy Center). It also agreed to a 20-year PPA with Platform meta for energy from its Clinton Clean Energy facility in Illinois.
Constellation has a diverse portfolio of energy assets, including the largest nuclear fleet in the United States, allowing the company to benefit from growing energy demand in the coming years.