As if uranium stocks to buy needed any more geopolitical fuel, the sector just got a major one not too long ago. With Congress approving a ban on Russian imports of uranium, the move sets the stage for a major showdown.
To be sure, it’s a tricky matter. Russia is a major supplier of uranium. Further, the U.S. and other nations have emphasized renewable energy infrastructure development. Unfortunately, with the war in Ukraine presenting a crisis that shows no sign of abating, the Biden administration must get ahead of the situation.
One piece of positive news for the underlying domestic industry is that there will be an enhanced focus on boosting nuclear fuel capacity. That and ongoing energy demands should present strong tailwinds for these uranium stocks to buy.
Cameco (CCJ)
Based in Saskatoon in Canada, Cameco (NYSE:CCJ) provides uranium for the generation of electricity. Under its mainline Uranium segment, Cameco is involved in the exploration, mining, milling, acquisition and distribution of uranium concentrate. Further, its Fuel Services segment engages in the refining, conversion and fabrication of uranium concentrate. As one of the most important players, it deserves consideration for uranium stocks to buy.
To be fair, Cameco’s earnings performance has been all over the map. Over the past four quarters ending in the first quarter, the average surprise came out to 1.95% below parity. However, when it does exceed expectations, it does so resolutely. For example, in Q2 2023, it posted earnings per share of 24 cents against an expected print of 9 cents.
It must be stated that investors will be paying a premium for the financial performance. Currently, shares trade at 12X trailing-year revenue. However, in fiscal 2024, EPS could rise to 69 cents on revenue of $2.22 billion. Last year, the results sat at 57 cents EPS on sales of $1.89 billion.
Energy Fuels (UUUU)
Based in Lakewood, Colorado, Energy Fuels (NYSEAMERICAN:UUUU) engages in the extraction, recovery, recycling, exploration, permitting, evaluation and sale of uranium mineral properties. The company also produces and sells vanadium pentoxide, rare earth elements and heavy mineral sands. To be sure, it’s a risky idea, with UUUU stock down 12% since the start of the year. Still, it could be interesting given the broad relevance.
Over the past four quarters since Q1 2024, Energy Fuels’ average surprise came out to 40.83%. It’s a wild set of performances, though, with Q4 2023 coming in at a loss of 13 cents against an expected loss of 6 cents. On the other hand, Energy posted EPS of 7 cents against an expected loss of 5 cents in Q3 last year.
To be clear, UUUU stock trades at a hot multiple of 22.45X trailing-year sales. That said, it was even hotter in Q3 2023, when the metric soared to 44.05X. However, investors are probably focused on fiscal 2024 revenue, which may reach $58.76 million. That’s up 54.9% from last year’s haul of $37.93 million. Thus, it’s one of the speculative uranium stocks to buy.
UR-Energy (URG)
Based in Littleton, Colorado, UR-Energy (NYSEAMERICAN:URG) engages in the acquisition, exploration, development and operation of uranium mineral properties. Per its corporate profile, UR-Energy holds interests in 12 projects located in the U.S. Its flagship property is the Lost Creek project comprising a total of approximately 1,800 unpatented mining claims and three Wyoming mineral leases covering an area of approximately 35,400 acres.
For full disclosure, UR-Energy is a speculative idea. As evidence, just look at its Q1 2024 earnings report. At the time, the company posted a loss of seven cents per share. However, Wall Street was anticipating a loss of 3 cents. And, in Q4 of last year, the company incurred a loss of 2 cents when it was projected to lose only a penny per share.
If that didn’t get you to think twice, URG stock trades at a whopping 41.68X trailing-year revenue. However, the optimists will almost certainly counter with fiscal 2024 projections, which call for sales of $37.21 million. That’s up 110.5% from last year’s tally of $17.68 million. If you don’t mind gambling, UR-Energy is one of the enticing uranium stocks to buy.
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.
