Are nuclear stocks the next big thing in green energy investing? Recent developments certainly point to that prospect as the alternative energy source attracts increasing legislative and consumer attention — even as sustainable solutions like electric vehicles increasingly fall out of favor.
Nuclear energy is already the world’s second-most productive low-carbon energy source, supplying 26% of the world’s total low-carbon power and 10% of the world’s net energy output. More relevant to these nuclear stocks to buy, though, are recent tailwinds in the U.S. propelling nuclear prospects higher. Specifically, the Senate just passed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, which aims to “encourage more innovation and investment in nuclear technologies” while helping regulatory agencies “redevelop conventional energy sites for future nuclear energy projects.”
Investors looking for nuclear stocks to buy likely saw these developments make waves throughout the sector but, if not, these companies stand to gain the most from a nuclear renaissance.
Nano Nuclear Energy (NNE)
Nano Nuclear Energy (NASDAQ:NNE) is already the top nuclear stock to buy if you don’t mind a bit of operational speculation and can stomach some volatility moving forward. Shares already doubled since debuting on stock exchanges in April, and I don’t expect that momentum to slow soon.
The company’s core R&D focuses on microreactors to deploy nuclear energy to remote sites or for unique, specific use cases. In an email, company CEO James Walker told me that, “the business model will involve deploying many microreactors” overseen by a “centralized location [to] monitor and control many reactors concurrently.” This remote model accounts for security and operational concerns while ensuring that Nano Nuclear can rapidly expand its footprint to where it’s needed most once commercialized and in full manufacturing mode.
Management thinks it’ll hit commercialization by 2030, but don’t let the long lead time dissuade you today — the company’s quiet period, or window in which insiders and underwriters cannot publish forecasts or reports, expired earlier this week. Expect lots more info and coverage to drop soon, but already, initial reports are pinning per-share pricing forecasts in the $15 range.
Brookfield Renewable Partners (BEP)
If you want a wider slice of the renewable and sustainable energy sector with nuclear energy offerings to boot, few options beat Brookfield Renewable Partners (NYSE:BEP). This management fund holds a vast array of global sustainable energy assets, including wind, solar and hydroelectric projects, offering a broad spectrum of green investments — including an increasing foray into nuclear energy.
Last year, the company jointly acquired Westinghouse Electric Company, which provides 55% of the United States’ carbon-free energy and 14% of the world’s, alongside massive uranium company Cameco (NYSE:CCJ).
Beyond its nuclear inroads, Brookfield Renewable is surprisingly strong considering wider industry headwinds. In its latest quarterly report, the company reported a 7.6% increase in funds from operations and maintained a dividend strategy that aims for annual increases between 5% and 9%. With a current dividend yield of 5.5%, Brookfield Renewable offers income and growth prospects that capture the wide-ranging alternative energy sector, including nuclear.
Constellation Energy (CEG)
Constellation Energy (NASDAQ:CEG) is the nation’s largest nuclear power operator that’s increasingly positioning itself to capture next-gen power demands: data centers.
A recent report points to massive data center energy demands in the coming years and more than doubling by 2030. To that end, company CEO Joseph Dominguez teased the opportunity Constellation faces, saying that the company is “in advanced conversations with multiple clients, large — well-known companies that you all know — about powering their needs” and expects to “finalize agreements that will have long-term and transformational value.”
With an already diverse energy portfolio that includes over 23,000 megawatts of capacity from nuclear, solar, wind, and hydroelectric sources, Constellation Energy is pivotal in fulfilling more than 10% of the United States’ energy requirements. Recognizing the combined financial and environmental benefits of nuclear energy, Constellation’s leadership recently participated in a sector-wide commitment, alongside other climate pioneers, to triple nuclear energy production by 2050, highlighting its proactive approach to shaping a sustainable energy future.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
