Mention nuclear energy as a viable investment category and chances are, you’ll eventually encounter some hesitation from your audience. While the best uranium stocks to buy now offer myriad opportunities, controversy clouds the sector. With incidents ranging from Three Mile Island to Chernobyl to most recently Fukushima, going nuclear has long been a tough pill to swallow.
However, the best uranium stocks to buy now may have received a cynical boost from one Vladimir Putin. As you know, the Russian president ordered the invasion of Ukraine, which has completely unsettled the modern global order. Now, international policymakers are scrambling to find acceptable alternatives to Russian hydrocarbons. Unfortunately, no other power source features the energy density of nuclear facilities.
What’s more, European countries who are highly dependent on Russian natural gas have over the years taken down many their nuclear powerplants. This unfortunate move in hindsight makes western nations even more reliant on Russian energy influxes.
While it would be naïve to say that the perfect answer is nuclear, it does play a significant role. Therefore, investors may want to check out these ideas for best uranium stocks to buy now.
|BHP||BHP Group Limited||$50.87|
|DNN||Denison Mines Corp.||$1.16|
Best Uranium Stocks: BHP (BHP)
Admittedly, one of the challenges for acquiring pure-play nuclear energy companies is that their equity shares tend to be choppy and wild. At other times, they can languish for years in vexing consolidation patterns. Therefore, conservative investors who want some exposure to uranium but also substantial ties to other stable businesses should look into BHP (NYSE:BHP).
One of the world’s biggest mining firms, BHP is also among the best uranium stocks to buy for folks who want a balanced take on the nuclear power industry. According to data compiled by Statista, BHP produced approximately 3.3 million metric tons of uranium for the year ended June 30, 2021. In addition, the company mines several other relevant metals and minerals, including copper, which is significant for the electric vehicle rollout.
Finally, BHP plays a second role as an inflation hedge. With the company featuring a forward yield of 13.7%, investors can lock themselves into one of the best uranium stocks to buy and get some serious passive income along the way.
Billed as one of the largest global providers of uranium fuel, Cameco (NYSE:CCJ) is a mainstay in the nuclear energy industry. Browse any list of best uranium stocks to buy and you’re almost guaranteed to see Cameco’s name on there.
Fundamentally, CCJ provides plenty of what you might call feel-good narratives. While it’s popular to rave about clean energy initiatives, nuclear power – when administered properly of course – is actually clean. Per the Office of Nuclear Energy, underlying facilities generate power through fission. And the “heat released by fission is used to create steam that spins a turbine to generate electricity without the harmful byproducts emitted by fossil fuels.”
Also, Cameco gets props for being one of Canada’s largest employers of Indigenous people while supporting international goals for promoting true net-zero emissions.
Technically speaking, CCJ stock is compelling because over the trailing year, it has charted a series of rising lows. It’s possible, then, that CCJ could be setting up an upside swing, though it does have a riskier profile than BHP.
Best Uranium Stocks: Denison Mines (DNN)
A uranium exploration and development firm, Denison Mines (NYSEAMERICAN:DNN) carries significant risks, in part because the underlying initiatives don’t always pan out successfully. Further, as early stage entities, plenty of things can go wrong. At the same time, companies like Denison Mines offer the highest reward potential, making them the best uranium stocks to buy for battle-hardened speculators.
Fundamentally, Denison Mines’ flagship project is Wheeler River, which according to the company’s website is “is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada.” Further, Denison features three other core projects: Waterbury, Midwest and McClean Lake.
Where it gets a bit squirrely for DNN is in market performance. For one thing, it’s currently priced just above $1, which is barely above literal penny-stock territory. Further, on a year-to-date basis, DNN is down more than 15%.
Still, as energy realities of the new normal set in, it’s possible greater demand can enter the space. As I said, it’s risky but catch it on the right day and it can really fly.
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.