Uranium stocks have taken center stage following a noteworthy caution from mining titan Kazatomprom, which recently slashed its production forecast due to a scarcity of sulfuric acid and construction setbacks. This development emerges in the wake of a commitment by global leaders at the COP28 climate conference to make substantial investments in nuclear energy, a sector in which uranium plays a critical role.
Exploring “Strong Buy”-Rated Uranium Stocks
Here’s a closer examination of three “strong buy”-rated uranium stocks, as per the consensus from Wall Street analysts, who project substantial upside potential for these stocks.
Uranium Stock #1: Cameco Corp
Cameco Corporation (CCJ), valued at $18.37 billion by market capitalization and headquartered in Canada, stands as one of the leading global uranium producers. The company’s stock has exhibited solid performance over the past year, registering a 46.7% increase. Cameco holds substantial sway, responsible for extracting approximately 18% of the world’s uranium, primarily from its premier mines in Canada’s Athabasca Basin. In late 2023, the company joined forces with Brookfield Asset Management to secure a 49% stake in Westinghouse Electric Company, a nuclear services enterprise.
In its Q4 earnings report issued on Feb. 8, CCJ fell short of earnings per share (EPS) estimates with an adjusted profit of $0.16. However, it surpassed revenue expectations, generating $627.16 million in revenue. Projections for fiscal year 2024 anticipate EPS growth of 52.3% and a 17% boost in top-line figures.
Uranium Stock #2: Ur-Energy Inc
Ur-Energy (URG), with a market cap of $460 million, predominantly focuses on uranium mining at the Lost Creek facility in Wyoming. Despite experiencing a 47.8% surge over the past year, the stock has retraced 15% from its recent highs.
In its latest earnings report, URG unexpectedly posted a per-share loss, but exceeded consensus revenue estimates by raking in $5.75 million. Wall Street envisions URG achieving full-year profitability in 2024, with revenue forecasted to skyrocket by over 170% to $51.62 million for the year.
Uranium Stock #3: Energy Fuels Inc
Energy Fuels (UUUU), the largest uranium producer in the U.S., also holds a stake in the rare earth elements market, providing it with a strategic advantage in other green technologies such as electric vehicles (EVs) and wind energy. Despite a 10% decline in its stock over the past year, Energy Fuels revealed adjusted earnings of $0.07 per share and revenue of $10.99 million in Q3 2023. The company anticipates a 31.4% surge in top-line figures to $56.29 million for fiscal 2024.
While uranium remains crucial to Energy Fuels, constituting about 89% of its revenue in the first three quarters of 2023, the company aims to ramp up its rare earth element production to 1,000 tonnes annually by early 2024. CEO Mark Chalmers anticipates Energy Fuels becoming the first U.S. company in many years with the capability to produce commercial quantities of NdPr oxide, a vital component in potent permanent rare earth magnets used in EVs, wind generators, and other technologies.
Analysts are overwhelmingly optimistic about Energy Fuels, with all five analysts covering the stock assigning it a “Strong Buy” rating. The mean target price is $10.54, reflecting a potential 62.6% increase from its current price.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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