3 Undervalued Uranium Stocks to Power Up Your Portfolio

In the years since, fears over the radioactive risks posed by nuclear reactors, paired with excess supply, have weighed on prices. The move in the underlying commodity has helped stocks in companies related to the industry. The Global X Uranium ETF (URA Quick QuoteURA – Free Report) has been on fire lately. With this frenzy on the move, which stocks within this industry are in the good graces of our Zacks Rank?

• Uranium has faced difficulties since the 2011 Fukushima nuclear disaster, when tsunamis brought on by a massive earthquake crashed into and damaged several Japanese nuclear reactors.
• However, TC is also a leading player in Canada’s power industry thanks to its nuclear generation capacity.
• Concerns related to the depletion of uranium at some major mining sites, as well as peak production, have also hit the industry.
• However, since most of their projects are in the U.S., Uranium Energy could see growing uranium demand in the future as the U.S. looks to reduce its reliance on foreign imports.
• Eugène-Melchior Péligot was the first person to isolate the metal and its radioactive properties were discovered in 1896 by Henri Becquerel.

Looking at the numbers, nuclear energy currently provides 10 percent of the world’s electricity. With new capacity growing annually, the International Atomic Energy Agency forecasts that this could reach 12 percent by 2050. He pointed out that uranium companies are now in a better position to negotiate sales to utilities. Uranium has faced difficulties since the 2011 Fukushima nuclear disaster, when tsunamis brought on by a massive earthquake crashed into and damaged several Japanese nuclear reactors.

Blue Sky Uranium

The price of uranium has strengthened in recent years, leaving investors wondering how to enter the market. More public and private investments are going into nuclear energy as well. Bill Gates has even launched a nuclear innovation company, TerraPower. There are many projects on the horizon irrational exuberance meaning involving a push for renewable energy. At an event in London, industry executives said the accompanying pickup in fuel demand will strain supplies of uranium. The market had languished for a decade after the 2011 Fukushima disaster in Japan prompted the closure of dozens of reactors.

This has spurred demand for uranium to increase and, despite the ongoing concerns, uranium stocks remain as one of the best-performing commodities second only to gold. Understanding where these companies’ uranium mines and production facilities are located can help investors make informed decisions. Those interested in uranium stocks may want to look at the countries that produce the most of the metal. The three top uranium-producing countries are Kazakhstan, Namibia and Canada. That’s right folks, the commodity used to fuel nuclear power plants has surged to its highest level since 2014, and a new Cold War is not the reason for the spike.

As the need for clean energy grows and uranium oversupply diminishes, demand for the energy fuel is likely to grow. Investing while uranium stock prices have room improvement could offer an opportunity. Futures are an important part of the market as there is currently no exchange-listed, transparent price instrument that consumers and suppliers can use to manage prices and risks. Furthermore, uranium futures provide investors with a marketplace for direct exposure to the price of uranium. As a third option, investors can look to the futures market while awaiting a rise in the uranium price. Futures are financial contracts that obligate the buyer to purchase (or the seller to sell) an asset like a physical commodity or financial instrument at a predetermined future date and price.

Copper Outlook Report (Updated for Q

Nuclear, by contrast, is cheap, reliable, and works in all weather conditions. Born in Maine and Living just outside of New York City, Jenna holds an MBA in Finance from the University of Maryland and has been actively trading stocks for nearly 11 years. The most notable of their projects is the Rook 1 Project that consists of 32 contiguous mineral claims over 35,065 hectares located in the Athabasca Basin of Saskatchewan region.

As this project progresses, it might produce up to 6.3 million pounds of U3O8, a compound of uranium. According to the WHO, millions of people die from the air pollution caused by fossil fuels each year. Still, as energy realities of the new normal set in, it’s possible greater demand can enter the space.

With an average concentration in the Earth’s crust of 2.8 parts per million, uranium is a sought-after commodity. There are about 4 hedge funds tied up in the company investing a total worth of $6 million. Apart from uranium, the company also has interests in iron ore, copper, diamonds, gold, and uranium, among other metals. The company also has everything from underground mines, mills, refineries, smelters, power stations, and research and service establishments. It really is one of the largest mining companies in the world in terms of market capitalization. By the end of the first quarter of this year, there are currently 7 hedge funds investing in the company at a total value of $12.3 million.

High-grade uranium is used for various use cases, including in nuclear reactors. Although the ores are more expensive to procure, they are also far easier to extract energy from https://1investing.in/ than their lower-yield counterparts. They also have use in smaller-sized reactors, laboratories, naval vessels, nuclear weaponry, and other experimental fields set to expand.

It also recently announced the discovery of more high-grade uranium at McClean Lake South. This company does not currently have any active mines but is working on developing two in Saskatchewan. Right now, rare earth metals are in high demand for new technologies like electric cars. In addition to uranium, Energy Fuels is a large producer of vanadium and other rare earth metals. It is based in Canada and trades on both the New York and Toronto stock exchanges.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. She covers finance as well as real estate, technology, pop culture, and more. It’s estimated that the world will be focusing on uranium well into the next decade and potentially beyond. Uranium is set to take the place of coal as a clean source of energy. Jumping on board now could spell significant gains before shares start rising again.

Purepoint Uranium

It’s like buying physical gold and waiting for the price of gold to appreciate. Looking at the brand’s valuation ratios, we can see an impressive demand surge over the last few quarters. Additionally, the company’s earnings per share have surged 185% this year alone. Cameco Corporation reportedly recorded 45 million pounds worth of long-term uranium contracts last year, with plans to increase that number moving forward.

Access to a wide variety of metals usually bodes well for share price even though things are in a decline at present. BHP Group is a well-diversified mining operation based on the Australian continent. This will increase its potential yield once the mine is up and running.

Investing in Uranium and Nuclear Energy

Stocks have also increased 5% when they recently announced their plans to capitalize on a newly-found uranium-rich deposit in McClean Lake. Over the past year, investors have seen more than 52% return on investment from the company. The company started 2021 strong with the first-quarter report of $15.2 million of revenue. This is slightly lower than the previous quarter’s cash flow of $21.5 million. LTBR might not necessarily be the largest company on this list, but its history and experience that date back to the 1990s have certainly served it well. The company mainly focuses on nuclear power technology development and also offers nuclear power consultancy.

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. As governments are realizing that nuclear is a better option, they’re approving more nuclear projects.

Part of the reason is on the demand side, coming from a fund that’s aggressively buying up the physical market. The mine contains the largest known deposit of uranium in the world. With an already high production capacity and increasing global demand, this uranium stock could see higher returns.

BHP has a robust balance sheet and a market cap of US$166.74 billion. For investors, this is an opportunity to capitalize on emerging trends and make some profits in the process. In this article, we will look at the best uranium companies to invest in for 2023. We’ll discuss how you can identify a good stock, where you can find reliable information about uranium stocks, and which ones may be worth investing in over the next few years.

Denison Mines (TSX:DML,NYSEAMERICAN:DNN)

In December 2022, Energy Fuels was awarded a strategic contract for US$18.5 million in uranium concentrates. This, combined with the company’s ownership of Nichols Ranch ISR and Alta Mesa ISR projects, highlights Energy Fuels Inc as a potentially strong stock option for investors. Speaking of the McArthur River mine, there’s another company with stakes in this uranium deposit – Cameco.

It has been used as a huge source of concentrated energy for a long time. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Nuclear energy certainly appears to be the near future, with more countries turning to nuclear as a source of fuel. Uranium is an essential component for nuclear power plants to run. The U.S. relies on nuclear power for roughly 20 percent of its total energy supply. Even if investors are waiting for share prices to go back up, an 12.70% dividend yield provides some nice passive income.