3 Uranium Stocks To Profit From A Nuclear Future

Uranium prices surged at the start of 2024 from $91 a pound to around $105 but but have since given up all of its gains and is now trading below $90 a pound. However, uranium prices are still up 83% over the past year and as the top-performing commodity of 2023, the prospects for uranium continue to be favorable despite some near-term weakness. 

As the global shift towards renewable energy accelerates, it’s becoming more clear that not all clean energy sources are as environmentally friendly as previously presumed. Nuclear energy stands out as a notable exception, with uranium playing a crucial role in generating the nuclear fuel required for power reactors. 

Given the bullish outlook for uranium, hedge funds are either initiating or expanding their stakes in uranium-related stocks. This trend stems from supply-demand dynamics, particularly as Kazatomprom, the leading global uranium supplier, lowered its 2024 supply projections and signalled to the market a potential prolongation of reduced production into 2025. 

Given these factors, it’s reasonable to assume that uranium may approach or surpass its record highs by year-end. Below, we explore three distinct stocks that have direct exposure to the uranium sector and could see strong upside in 2024 and beyond. 

Up 100% In 12 Months With Room To Move Higher 

Uranium Energy Corp. (NYSEAMERICAN: UEC), North America’s leading diversified uranium enterprise, began production in 2023 and immediately took advantage of soaring uranium prices. It plans to resume operations at its fully licensed Christensen Ranch facility in Wyoming by August 2024. 

Investors might hesitate to invest in UEC, given its over 100% surge in the past year. Yet, as of March 11, the stock is showing strong support around the $6.50 mark, with analysts assigning a Strong Buy rating and a consensus target of $10.33. 

A High-Risk, High-Reward Option For Speculative Investors 

For those comfortable with the volatilite nature of penny stocks, Nexus Uranium Corp. (OTCMKTS:GIDMF) presents an interesting stock to look at. This Canadian entity, previously known as Golden Independence Mining Corporation, rebranded to Nexus Uranium in 2023 to better represent its expanded focus on uranium and precious metals. 

Nexus boasts advanced projects in leading mining areas. Notably, it has signed letters of intent to acquire significant stakes in the Wray Mesa Uranium Project in Utah and the Cree East Uranium Project in Canada’s Athabasca Basin, a region that is counted on to supply around 20% of the world’s uranium. 

The potential for growth is quite impressive, yet Nexus remains a micro-cap stock, valued just above $9 million and has a noteworthy short interest. For those versed in and comfortable with the intricacies of penny stocks, Nexus Uranium offers a compelling risk-reward proposition. 

A Set It And Forget It Approach For Passive Investors 

Investing in an exchange-traded fund to gain exposure to the uranium sector offers an alternative to those that don’t want to or don’t know how to select a basket of individual stocks. The Global X Uranium ETF (NYSEARCA:URA) stands out as the sector’s leading choice, covering the entire uranium mining spectrum, from extraction and refining to exploration and manufacturing 

This fund follows the Solactive Global Uranium & Nuclear Components Index, with a portfolio of 50 holdings, including Uranium Energy, and features a modest expense ratio of 0.69%. 

It’s noteworthy that the ETF’s assets under management have risen to $2.77 billion, an increase of approximately $1 billion since late January 2024, with institutional investors contributing $142 million in the fourth quarter of 2023 alone.