Top Uranium Stocks To Buy In 2024

What are uranium stocks?

Uranium stocks are shares of investment owned by companies engaged in mining, refining, exploration, and production of uranium. Essentially, uranium stocks represent investing in companies in the uranium industry, such as the energy sector and resource portfolios.

Uranium is a key player in generating nuclear energy for industrial and commercial use. It has gained global acceptance from different governments and agencies as a viable means of generating electricity with lower carbon emissions.

Therefore, nuclear power plant companies use uranium as the primary fuel for nuclear reactors used in generating electricity through a process known as nuclear fission. Let’s look into some of the reasons why investing in uranium is crucial in energy and resource portfolio:

• 1

  Environmental Considerations: Energy generation using uranium is widely acceptable to be less toxic with relatively lower carbon emissions. However, investors should be aware of the safety concerns of nuclear waste.

• 2

  Global Energy Generation: The global demand for uranium is rising as the world continues to seek cleaner energy options.

• 3

  Diversification: Uranium stocks offer investors a platform to diversify resource portfolios. Investing in different uranium stocks helps to spread the risk with the potential of making better returns.

• 4

  Demand and Supply Dynamics: The complexity of demand and supply fluctuation of uranium is connected to several factors, including shifts in power generation, policy changes, and geopolitical events. These factors impact the demand for uranium globally.

Top 7 uranium stocks to consider

Uranium Energy Corp (UEC)

The Uranium Energy Corp (UEC) is the first uranium stock on our list suited for long-term investment. It is one of the best-performing uranium stocks with a market cap of 2.13B. It is up 103.90% as of November 2023.

The company explores and processes uranium in the United States, Canada, and Paraguay. It positions itself to meet the growing demand for uranium in the U.S. to mitigate the dependence on foreign uranium. It is poised to become the biggest uranium producer in the U.S. in anticipation of a potential change in U.S. energy policy that would favor domestic uranium production.

Uranium Energy Corp has multiple uranium projects at different stages of development. It uses innovative technologies that improve uranium extraction, production, and efficiency for environmental sustainability.

Cameco (CCJ)

Cameco (CCJ) is one of the largest producers of Uranium; it produces over 30 million pounds annually. Cameco has a market cap of 17.53B and has generated a dividend of 114.11% as of November 2023.

The company has a significant uranium reserve in the United States, Australia, Canada, and Kazakhstan, which positions it to provide uranium products to different countries to meet the rising demand for nuclear fuel. It also has diversified operations for investors that cover various stages (mining, refining, and conversion) of the nuclear cycle.

The Cameco Company has a strong growth potential because of its environmentally friendly practice of mining uranium. It follows the recommended safety standards, which makes it enjoy global acceptance, especially now that the world is shifting towards reducing greenhouse emissions.

Finally, Cameco takes pride in its extensive experience in the uranium industry, which translates into a better understanding of the market dynamics and operational expertise.

Energy Fuels (UUUU)

Energy Fuels (UUUU) is another uranium company worth mentioning. It is one of the U.S.-based uranium companies notable for uranium exploration, extraction, and processing. It is also involved in the production of vanadium, also used in nuclear power generation.

The company has consistently maintained a solid position as a leading uranium mining industry in the energy sector, with a diverse portfolio. Energy Fuels is well-positioned to remain a major player in the uranium mining industry with substantial reserves and a diversified portfolio of assets. It also holds several projects and properties in the U.S. to ensure a continual production of uranium.

In addition, Energy Fuels has also established strategic partnerships with relevant government agencies and major players in the uranium mining sector for better investment opportunities and collaboration for clean energy initiatives. Besides, it has a contract from the U.S. Department of Energy to recover uranium from different sources – a feat that solidifies the company’s position in the market.

Uranium Royalty Corp (UROY)

Uranium Royalty (UROY) is one of the big players in the uranium sector that operates as a royalty company. It uses a unique business model that acquires royalties on uranium assets globally and generates revenue through extraction and sales without operational risk from mining activities.

The company generates steady revenue by adopting a low-cost structure that avoids the operational costs and risks of mining uranium. It acquires a percentage of royalties and streaming interest at a predetermined price, allowing it to benefit from the production without operational cost.

Furthermore, Uranium Royalty Corp holds a significant uranium reserve spread across strategic mining regions to ensure a steady flow of uranium production. By doing so, it has positioned itself to benefit from the rising demand for uranium, which makes it a good prospect for investors.

NuScale Power Corporation (SMR)

NuScale Power Corporation (SMR) is another Uranium stock that has gained significant attention among investors due to its steady growth over the past few years. It is an American company founded in 2007 that focuses on small modular nuclear reactors (SMR), a technology that develops small modular reactors.

Nuscale has continued to attract big investors because it has, over the years, garnered strong support from different government entities and other big industry players globally due to its eco-friendly mining practices. Besides, the company has also received significant support in terms of funding from the U.S. Department of Energy.

Furthermore, it is one of the most reliable uranium stocks with market potential that continues to attract investors because of its general acceptance among the populace as an environmental-friendly project. Also, NuScale Power Corporation uses advanced technology to make their small modular reactors safer, more efficient, and scalable than the traditional nuclear power plant.

BHP Group (BHP)

BHP Group is one of the world’s most diversified companies with multifaceted operations in mining, petroleum, and metals. It has a global footprint in the mining industry and a well-established standing in the commodity market with strong reserves and potential growth.

The company is one of the biggest players that has contributed significantly to uranium production recently. It produced a whopping 4.4 million metric tons of uranium in 2016, making it one of the highest producers of uranium in 2016. Besides, it has produced over 3.4 million tons of uranium as of June 2023, which surpassed its 2022 record. It has a market cap of 144.57B and has yielded 0.07% as of November 2023.

BHP Group is poised to meet the emerging demand for uranium globally. It has diversified substantial reserves to maintain the continual production and supply of uranium. Besides, the company has a robust financial record, which allows it to invest in long-term projects and navigate market downturns.

Ur-Energy (URG)

Ur-Energy is the final uranium mining company on our list that plays a significant role in meeting the emerging demand for uranium. This uranium mining company was established in 2004 and is saddled with the exploration and development of uranium mineral properties. It has a market cap of 406.96M.

The company holds significant uranium assets (e.g., the Lost Creek project, etc.) and substantial uranium reserves, which provide the resources for long-term investments and further expansion through exploration. The Lost Creek project, for instance, brings significant resources to the company, indicating a substantial supply for continual production.

Over the years, Ur-Energy has positioned itself to meet the global demand for clean and sustainable energy sources through the exploration of uranium. Thus, it is expected to grow as the demand for uranium continues to rise globally.

Furthermore, the company’s strategic partnerships and collaboration with the government and other companies within the power sector positioned it for potential growth in the uranium industry.

Best brokers to invest in Uranium stocks

1

9.4/10

Go to broker

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Minimum deposit:

From $100

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.

Pros/Cons

•High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.

•Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.

•An opportunity to combine active trading with social trading and passive investing.

•Zero-fee trading of a number of stocks.

•Access to ready-made diversified asset portfolios with various risk levels.

•Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.

•Zero fees for portfolio management, depositing funds and account maintenance.

•High minimum deposit for users of a number of countries.

•No live chat on the website for quick connection to customer support.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.
Via eOption's secure website.

Minimum deposit:

$1

Review

The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.

Pros/Cons

•Low commissions for options trading — $0.10 per contract plus $1.99 per trade.

•No minimum deposit requirements for cash trading accounts opened by US residents.

•FINRA membership and the protection of clients’ funds are available through Securities Investor Protection Corporation (SIPC).

•Access to professional trading platforms such as DAS and Sterling Trader Pro are developed by third-party software developers for the proprietary eOption terminal.

•An affiliate program with high rewards.

•Compensation for commissions for funds or assets from other brokerage firms and institutions transfer.

•Prompt support by phone and online chat in the trading platform during company business hours.

•The narrow range of choice of investment solutions to generate passive income.

•You cannot trade Pink Sheet and Bulletin Board stocks.

•There is no online chat on the company's website.

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Criteria for selecting uranium stocks

Every potential investor needs to take into consideration various factors like company stability, resource holding, and market conditions before selecting a uranium stock to invest in. Here is an in-depth analysis of the aforementioned criteria for selecting uranium stocks:

The stability of a company is one of the most important factors to consider before deciding to invest in a uranium stock. Pay attention to the cash flow, profit margin, and debt level of any company of interest to determine their performance financially. Check for a stable and growing financial curve before investing in a uranium stock.

Also, examine the company’s safety and regulatory compliance in extracting uranium to avoid investing in companies prone to operational disruption from relevant authorities. Finally, consider investing in companies with diversified asset portfolios with a feasible long-term growth strategy, which includes exploration projects and expansion plans.

The quantity and quantity of the uranium reserve of a company is crucial for long-term production in the uranium sector and profitability. Also, consider the stability of the geological location where the company’s reserves are held. A stable political zone reduces the risk of sudden liquidation and ensures consistent operation.

Evaluate the market sentiment and confidence of stock analysts towards a uranium stock to make informed decisions. Uranium stocks with significant recommendations from analysts and investors tend to do well.

Furthermore, look for factors that could significantly drive the demand for more uranium production. For instance, the expansion of nuclear power would positively impact the demand for uranium.

Is investing in uranium stocks a wise choice?

There are many projections about the nuclear industry's growth in the long term, so demand for uranium and prices can grow. In 2023, uranium experienced significant growth with a 20% rise in price. Consequently, uranium stocks keep attracting the interest of investors globally as the world is trying to make a major shift to generating power using environmentally friendly means.

Agencies like the International Energy Agency (IEA) and the World Nuclear Association (WNA) have projected a continual rise in the demand for uranium due to the potential growth in the power sector. The WNA, for instance, predicted the world reactor requirement for uranium to increase to almost 130, 000 tonnes in 2040 from the current estimate of 65,000 tonnes in 2023.

The IEA’s report also suggests nuclear power to be the second-largest source of low electricity across the globe. Here are some harmonized key points from the reports of the International Energy Agency (IEA) and World Nuclear Association (WNA) on the uranium industry:

• The global pursuit of having an environmentally friendly source of energy will continue to impact nuclear energy demand.

• Countries and international agencies should maintain policies that give a level playing ground for competition.

• The safety regulation should be updated where necessary to maintain the best mining practices of uranium.

• Relevant agencies should encourage and support the innovation of new reactor designs.

How to invest in uranium stocks

The first step towards investing in uranium stocks is to find a broker that offers a different range of commodities to invest in. So, do detailed research on a regulated commodity trading broker that supports investing in uranium stock. Here are some practical guides on how to invest in the uranium sector:

Researching the uranium to invest in is one of the most crucial factors towards long-term growth. For instance, you can research individual companies to understand their projects, financial health status, and growth prospects. Also, stay informed about the latest government policies and regulations of any uranium stock of interest before deciding on what uranium stock to buy.

Consider diversifying your portfolio and spreading your investment with various companies to mitigate the risk of losing everything to a bad investment. Also, use the cost averaging technique to buy at different intervals rather than a one-time big investment.

Furthermore, set realistic investment goals and stick to them. A rule of thumb is to risk an amount you’re willing to lose and close an open trade position immediately after it hits the predetermined price. Finally, use a stop-loss order to manage potential losses.

Risks and challenges of uranium stock investments

Investing in the uranium stock market has inherent risks and challenges that could affect investors negatively. One of the challenges and risks of investing in the uranium sector is tied to the regulatory factors. The uranium industry is under strict government regulation, policies, and international treaties. So, a change in government policy, for instance, can significantly influence the impact of the uranium industry and, consequently, uranium stock.

Another hurdle that can negatively impact the uranium sector is a change in public perception triggered by disasters. Notable examples are the Chernobyl disaster in Ukraine or the Fukushima Daiichi nuclear disaster in Japan may cause negative sentiment regarding the uranium sector, which could eventually affect uranium stocks.

In addition, the market volatility in the uranium sector is another factor to contend with. The uranium industry is susceptible to high market volatility driven by geopolitical tensions, supply and demand, and global economic conditions.

Finally, another challenge in the uranium sector worth mentioning is that it is capital-intensive. Mining and exploration of uranium often require significant capital investment, which could delay the project from moving to the next phase.