As countries worldwide strive to increase their nuclear energy capacity, the nuclear power industry is embracing new opportunities for development. Former U.S. President Donald Trump previously proposed an ambitious goal to quadruple the United States’ nuclear power capacity by 2050. Meanwhile, geopolitical risks have intensified supply constraints. After experiencing significant gains over the past year, nuclear power stocks have recently undergone corrections amid market fluctuations, offering investors opportunities to take notice. The following two companies are worth keeping an eye on.
Cameco (CCJ) is a high-grade uranium mining company based in North America. Its McArthur River and Cigar Lake mines account for a substantial share of the global supply of premium uranium. The company also holds stakes in Kazakhstan’s Inkai joint venture and provides refining and fuel manufacturing services.
Since the beginning of 2023, the company’s stock price has surged by 395%. As multiple countries plan to triple their nuclear energy capacity by 2050, Cameco stands to benefit from the growing demand.
Headquartered in Canada, Cameco is poised to become a key supplier for North American customers. Additionally, it holds a 49% stake in Westinghouse Electric Company, a nuclear power plant service provider that offers technologies for new nuclear plants, including the AP1000 reactor. Last year, the U.S. government signed an agreement with Cameco, Westinghouse, and Brookfield Renewable Partners, committing $80 billion to the construction of nuclear reactors.
Centrus Energy (LEU) supplies nuclear fuel components for utility reactors, including low-enriched uranium (LEU) and natural uranium hexafluoride used in the production of LEU. The company currently sources uranium materials from global suppliers, including France’s Orano and Russia’s Tenex. Although Centrus currently holds an exemption for LEU imports, approximately one-quarter of the U.S.’s imported enriched uranium comes from Russia, making the search for alternative sources an urgent priority.
The company has secured a $900 million task order from the U.S. Department of Energy to expand its uranium enrichment capacity at its Piketon facility in Ohio. Centrus is committed to achieving domestic uranium enrichment production, manufacturing both LEU and high-assay low-enriched uranium (HALEU). The latter is utilized in advanced reactors designed by companies such as TerraPower, Westinghouse Electric, and Oklo. Currently, Centrus is the only U.S. Nuclear Regulatory Commission-licensed HALEU producer serving both commercial and national security applications.
Investment Considerations
Cameco and Centrus Energy are currently trading at elevated valuations, with price-to-earnings ratios for 2026 projected at 74x and 66x, respectively. This suggests that their stock prices may experience significant volatility. However, for those with a long-term bullish outlook on the global nuclear power construction landscape, these two stocks are worth monitoring over the next decade and beyond.
