I feel that each investor should carefully consider these uranium multibagger stocks as potential investments for their portfolio.

As InvestorPlace reported previously, the current move towards cleaner forms of energy is making nuclear power one of the most sought-after energy sources. Due to the unstable oil prices and the termination of thermal coal burning, nuclear energy is gaining importance. Such countries as China, India and Russia are already at the forefront of this race, having numerous nuclear reactors under construction and even more planned.

This supply-side challenge is further compounded by the technical factors involved in the extraction of uranium — for example, the availability of items like sulfuric acid. Due to these factors, uranium prices are rising and showing good prospects for uranium multibagger stocks.

I believe nuclear power is the future of energy. So, here are three companies that investors should keep on their radar due to their long-term growth potential.

Cameco (CCJ)

For the investor aiming at high growth potential within the uranium industry, I suggest focusing on Cameco (NYSE:CCJ), one of the largest uranium producers globally.

I also like Cameco’s decision to buy a stake in Westinghouse Electric, which enhances its activities along the entire nuclear supply chain. This approach not only helps Cameco diversify its revenue streams but also enables it to capture opportunities such as small modular reactors. I see these reactors as a stepping stone before reaching more theoretical but disruptive tech as nuclear fusion.

Other factors affecting the industry also support the company’s position, such as the rising government support for nuclear energy and the power requirements from artificial intelligence and data centers. Even though the company’s current valuation is not that low, its growth prospects make it worthwhile. Namely, analysts have a Strong Buy rating for CCJ stock, with a 31.56% implied upside from the current stock price. I think, then, this makes CCJ one of those uranium multibagger stocks to consider.

Energy Fuels (UUUU)

Energy Fuels (NYSEAMERICAN:UUUU) is a leading U.S. producer of uranium and vanadium.

The firm’s concentration on uranium and rare earth elements makes it stand out in the market since the two are essential materials. The most interesting for me is Energy Fuels’ plans for production increase, set to reach a level two times higher by the end of 2024. This, together with other geopolitical opportunities such as the ban on the sale of Russian uranium, could be a heaven-sent opportunity for the company. 

If uranium spot prices stay high and the company achieves its production targets, there is a possibility of a huge improvement in the company’s financial situation. However, UUUU’s market cap of just under $1 billion and price-to-sales ratio of 20x is where it hits the sweet spot.

I think UUUU could be one of those uranium multibagger stocks for these reasons, especially as the spot price of uranium is predicted to rise steadily over the next few years, per CCJ forecasts.

Denison Mines (DNN)

Denison Mines (NYSEAMERICAN:DNN) is a Canadian uranium exploration and development company. The company’s mine portfolio, particularly in the Athabasca Basin, makes it benefit from the current renewed interest in the nuclear energy sector. The thing that interests me most is the possibility of low-cost production from the Phoenix deposit via in-situ recovery techniques. 

DNN’s solid balance sheet position and holdings of physical uranium make it a good investment option along with the possibility of increasing uranium prices. Although the risk is relatively high due to the company’s development stage and dependence on uranium prices, I think Denison is a good risk/reward opportunity, especially for those seeking uranium multibagger stocks to invest in.

DNN is a penny stock that trades at $1.90 per share at the time of writing. However, it has a substantial market cap of $1.7 billion, with around half of those held by institutions.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed 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.