Since January 2022, the spot price of uranium is up approximately 162%. That makes it one of the best performing assets over the last two years. And it certainly stands out among commodities, which has been a difficult trade.
Even after a pullback to start 2024, the bullish case for uranium remains strong. Several governments, notably the United States and Iran, are stockpiling uranium at record levels. That speaks to the yellow metal's role in the buildout of nuclear weapons.
But there's a larger story emerging for uranium. That has to do with the world's transition to renewable energy. It's a transition filled with good intentions, but the reality is that many renewable forms of energy aren't of the "clean energy" type needed for the net-zero pledges being made.
That's where uranium comes in. Nuclear energy is a truly clean form of energy, and uranium is an essential component of the nuclear fuel needed to power nuclear reactors.
In this special presentation, we're providing a quick analysis of seven uranium stocks likely to benefit from rising uranium prices in 2024 and beyond.
Quick Links
- Uranium Energy Corporation
- Cameco Corporation
- Energy Fuels
- NexGen Energy
- Denison Mines
- Uranium Royalty
- Global X Uranium ETF
#1 - Uranium Energy Corporation (NYSEAMERICAN:UEC)
The first name on this list of uranium stocks is Uranium Energy Corp. (NYSEAMERICAN: UEC). The company is the fastest-growing North American uranium company and claims to be the largest and most diversified uranium company with a focus on North America. UEC has projects in four U.S. states in addition to Canada and Paraguay.
UEC stock is up 102% in the last 12 months despite the sharp drop in uranium prices in early 2024. A key reason for the stock price growth was that the company transitioned from being a developmental and exploration company to production in 2023. This allowed the company to take advantage of the rising price of uranium.
The company has announced it will restart production at its fully permitted Christensen Ranch operations in Wyoming in August 2024.
As of October 2023, the company had a strong balance sheet with $213.7 million in cash and cash reserves with no debt.
About Uranium Energy
Uranium Energy Corp., together with its subsidiaries, engages in exploration, pre-extraction, extraction, and processing uranium and titanium concentrates in the United States, Canada, and Paraguay. It owns interests in the Palangana mine, Goliad, Burke Hollow, Longhorn, and Salvo projects located in Texas; Anderson, Workman Creek, and Los Cuatros projects situated in Arizona; Dalton Pass and C de Baca project located in New Mexico; Roughrider, Shea Creek, Christie Lake, Horseshoe-Raven, Hidden Bay, Diabase, West Bear, JCU, and other project located in Canada; and Yuty, Oviedo, and Alto Paraná titanium projects in Paraguay.
Read More - Current Price
- $8.16
- Consensus Rating
- Buy
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $10.50 (28.8% Upside)
#2 - Cameco Corporation (NYSE:CCJ)
Cameco Corporation (NYSE: CCJ) is the world's largest publicly traded uranium company. Cameco has active mining projects in Canada, the United States, and Kazakhstan, and has additional exploratory projects in Australia.
A distinguishing characteristic of Cameco's business model is that it has a controlling interest in its low-cost mines, which produce high-grade uranium. Additionally, Cameco is recognized for its environmentally friendly way of mining uranium.
Cameco also has a strategic partnership with Brookfield Asset Management Ltd. (NYSE: BAM) that gives the company a 49% interest in Westinghouse Electric Company. This will be a key strategic move as demand for nuclear reactors will likely increase.
CCJ stock is down 3.6% in 2024 but is still up over 60% in the last 12 months and is finding support around its March 12 price of $41.50.
About Cameco
Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services.
Read More - Current Price
- $57.61
- Consensus Rating
- Buy
- Ratings Breakdown
- 7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $66.56 (15.5% Upside)
#3 - Energy Fuels (NYSE:UUUU)
Energy Fuels Inc. (NYSEAMERICAN: UUUU) is one of the leading uranium producers in the United States in the last few years. In fact, the company has been responsible for about 2/3 of all U.S. uranium production since 2017. The company has approximately one dozen conventional and in-situ projects in Utah, Arizona, Wyoming, and Colorado.
UUUU stock is also a way for you to gain exposure to rare earth minerals in addition to vanadium and radium, which the company also mines.
In February 2024, Energy Fuels reported record net income and earnings per share. Additionally, the company closed the quarter and full year 2023 with over $220 million in working capital and no debt.
In the last 12 months, UUUU stock has hit a high of around $8.50. But in both cases, that has served as a point of resistance. One reason is that, while growing revenue, the company is still not profitable.
Nevertheless, analysts remain bullish on the stock with a consensus price target of $10.70, which is 62% higher than its current price.
About Energy Fuels
Energy Fuels Inc, together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite.
Read More - Current Price
- $6.94
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $8.50 (22.6% Upside)
#4 - NexGen Energy (NYSE:NXE)
NexGen Energy Ltd. (NYSE: NXE) is an exploration and development stage company headquartered in Vancouver, Canada. The company is a pre-revenue company. However, it holds 100% interest in the Rook 1 project.
This is a proposed uranium mine and mill development in the southwestern Athabasca Basin in Saskatchewan. It's also where the company identified its Arrow Deposit approximately 10 years ago. NexGen has recently identified the discovery of "new intense uranium mineralization" in a 100%-owned area near the Arrow Deposit.
Finding "another Arrow" was one of the company's goals for 2024. NexGen has plans for five new projects to be found, permitted, financed, and constructed in the next 20 years.
Once the company begins production, it expects to mine 20 million pounds of uranium annually, which will be enough to cover 50% of the West's supply needs.
NXE stock is up 78% in the last 12 months, and the consensus price target of 13 analysts is $10 which is 32.34% higher than its price on March 12, 2024. Additionally, 12 14 analysts give the stock a Strong Buy rating.
About NexGen Energy
NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan.
Read More - Current Price
- $8.33
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $11.00 (32.1% Upside)
#5 - Denison Mines (NYSEAMERICAN:DNN)
Denison Mines Corp. (NYSEAMERICAN: DNN) is another uranium company in the exploration and development stage. Like several of the companies on this list, Denison has several projects in the Athabasca Basin region. However, its flagship project is its 95%-owned Wheeler River project, which the company defines as the largest undeveloped uranium project in the eastern Athabasca Basin region.
Denison has already identified two significant uranium deposits named Phoenix and Gryphon. However, investors will need to be patient. Production is not expected to start at the Phoenix site until 2027 or 2028. That presumes a two-year construction schedule.
DNN stock is up 43.75% in the last 12 months, and analysts give the stock a $3.02 price target, which would be a 63% gain for investors. Additionally, four out of seven analysts give the stock a Strong Buy rating.
About Denison Mines
Denison Mines Corp. engages in the acquisition, exploration, and development of uranium bearing properties in Canada. Its flagship project is the Wheeler River uranium project covering an area of approximately 300,000 hectares located in the Athabasca Basin region in northern Saskatchewan. The company was formerly known as International Uranium Corporation and changed its name to Denison Mines Corp.
Read More - Current Price
- $2.28
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $3.00 (31.9% Upside)
#6 - Uranium Royalty (NASDAQ:UROY)
Uranium Royalty Corp. (NASDAQ: UROY) offers investors a different way to invest in the growing demand for uranium. Uranium Royalty isn't a miner and doesn't have the associated risks. Instead, the company owns and invests in 18 uranium projects throughout the United States and Canada, including several projects in the Athabasca Basin region.
The company positions itself as "The First and Only Pure Play Uranium Royalty Company." By this, it is the first company with a royalty and streaming business model exclusive to the uranium sector.
UROY stock has only been publicly trading since 2020. The stock is up 21% in the last 12 months despite being down over 4% in 2024. Uranium Royalty is not heavily covered by analysts but has a consensus price target of $5.35, which would result in a gain of over 102% from the stock's price on March 12, 2024.
About Uranium Royalty
Uranium Royalty Corp. operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. The company has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona.
Read More - Current Price
- $2.65
- Consensus Rating
- Strong Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $5.60 (111.3% Upside)
#7 - Global X Uranium ETF (NYSEARCA:URA)
A uranium-focused ETF is an ideal way to invest in the uranium sector when you don't want to invest in one particular company. The Global X Uranium ETF (NYSEARCA: URA) is one of the more popular uranium ETFs, with over $2.77 billion in assets under management (AUM). For perspective, the company had around $1.8 billion in AUM in January 2024. The money comes from both institutions and retail investors.
The fund is benchmarked to the Solactive Global Uranium Index, which is weighted by market cap. As of March 2024, the fund has 50 holdings, including many of the names in this presentation, including Uranium Energy, Cameco Corporation and NextGen Energy. Approximately 60% of the fund's geographic exposure is in Canada and the United States, with an additional 13% from Australia.
The ETF is up 44% in the last 12 months and is holding on to a 2.6% gain so far in 2024. Another appealing feature of the fund is a relatively low net expense ratio of just 0.69%.
About Global X Uranium ETF
The Global X Uranium ETF (URA) is an exchange-traded fund that mostly invests in stocks based on a particular theme. The fund tracks a market-cap-weighted index of companies involved in uranium mining and the production of nuclear components. URA was launched on Nov 4, 2010 and is managed by Global X.
- Current Price
- $31.97
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $31.97 (0.0% Downside)
If you still need some convincing about the growth potential for uranium stocks, consider this. It's one thing for retail investors to start piling into certain stocks and sectors. That's what the meme stock movement was all about. However, in the case of uranium, hedge funds are beginning to pile money into uranium stocks.
What they see is a simple case of supply and demand. The Kazatomprom, which is the world's largest uranium supplier, recently cut its 2024 supply forecast by approximately 14%. It also warned that this slowdown may extend into 2025.
Just look at what's happening with Bitcoin as its halving event approaches. When the supply of any asset is cut with demand staying the same or increasing, the underlying asset's price has only one direction to go.
That's why the last two years may be only the beginning of a multi-year cycle in uranium stocks. And many of the stocks in this presentation are priced in a way that can allow you to take a sizable position for not a lot of capital.
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