Investors looking for the next big thing in the market should consider the best uranium stocks. It really comes down to a central talking point: artificial intelligence and other advanced technologies don’t come for free.
What does that mean? Yes, you can pull up ChatGPT or other chatbot without paying money. However, to run these advanced protocols requires tremendous energy consumption. And the harsh reality is that the U.S. power grid may not have the capacity to support ever-rising tech-centric initiatives. AI is important, sure, but there are many other critical needs.
Further, the productivity advancements of digital intelligence and other advanced solutions must start making themselves more apparent. Otherwise, if the net productivity gains are minimal, that would be a ton of energy consumption for very little value. So, societies will need access to robust power sources.
Unfortunately, the physical laws of the universe can’t change. Nuclear fuel commands tremendous energy density. And that’s the bottom line. With that, below are the best uranium stocks to consider.
CCJ Stock: Hand in long yellow glove holding a chunk of uranium material
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A diverse business within the nuclear ecosystem, Cameco (NYSE:CCJ) provides uranium for electricity generation. Per its public profile, the company is involved in the exploration, mining, milling, acquisition and sale of uranium concentrate. It’s a true powerhouse in the sector and so it’s no surprise that analysts love it. CCJ stock is a unanimous strong buy with a $57.46 average price target, implying almost 14% upside potential.
To be fair, Cameco doesn’t seem that compelling from a financial perspective. In the past four quarters, its average earnings per share came out to 12 cents. However, experts anticipated that this print would come out closer to 14 cents. Therefore, the earnings surprise was disappointing: down almost 1% below parity.
During the trailing 12 months (TTM), Cameco posted a net income of $234.82 million or 39 cents per share. Revenue in the cycle hit $2.53 billion. These stats aren’t the most impressive. However, for fiscal 2024, EPS could rise by nearly 30% to 74 cents. On the top line, revenue may see a bump up of 16.7% to $2.21 billion. Thus, it’s one of the best uranium stocks to consider.
NexGen Energy (NXE)
Uranium on top of black rock background.
Source: RHJPhtotos / Shutterstock
One of the most speculative ideas you can consider, NexGen Energy (NYSE:NXE) nevertheless deserves to be on your radar. Per its corporate profile, NexGen is an exploration and development stage company. It engages in the acquisition, exploration, evaluation and development of uranium properties in Canada. To be sure, it’s a pre-revenue enterprise so it’s high risk. Nevertheless, analysts peg shares as a unanimous strong buy with a $9.44 average price target.
Should NXE stock get to that point, investors would pocket a nice profit of nearly 33%. Further, the high-side estimate calls for a per-share price of $10.27. Because it’s pre-revenue, NexGen could only resort to mitigating expected losses. Even then, this narrative wasn’t favorable. Its quarterly surprise in the past year came out to 158.33% below parity.
However, as an upstream player, the focus is on what the company can transition into. For that, experts see fiscal 2024 sales hitting $1.46 million. Further, the most optimistic analyst sees revenue soaring to $2.91 million.
Granted, with shares outstanding of nearly 561 million, the projected price-to-sales ratio would be sky high. Still, analysts believe in big things coming over the horizon. Therefore, it’s one of the best uranium stocks for speculators.
Nano Nuclear Energy (NNE)
Nano Nuclear Energy Inc company logo displayed on mobile phone. NNE stock
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Falling under the specialty industrial machinery sector, Nano Nuclear Energy (NASDAQ:NNE) operates as a microreactor technology firm. According to the corporate profile, Nano is developing a ZEUS, a solid-core battery core reactor. It’s also moving forward with ODIN, a low-pressure coolant reactor. Recently, the company generated big news for acquiring intellectual property that will help improve reliability and stability.
Now, it must be said that NNE stock is wildly speculative. Since its public market debut in May this year, shares have skyrocketed almost 356%. That’s obviously impressive. However, it also lost nearly 9% on the session heading into the July 4 holiday, which isn’t encouraging. Still, bullish investors could be looking for a pennant formation to develop. If so, the current consolidation phase may yield a big blowoff move.
Unfortunately, NNE stock represents a new enterprise, at least as far as being publicly traded is concerned. So, I don’t have a whole lot of information to work with other than its potentially groundbreaking technology. It’s pre-revenue, adding to the uncertainty.
However, Benchmark’s Michael Legg believes Nano can reach a price of $39 per share. That would be up about 65%. For gamblers, NNE could be one of the best uranium stocks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
