Group 1 - Diamond Hill Capital's "Small Cap Strategy" reported a 7.93% return in Q3 2025, underperforming the Russell 2000 Index which gained over 12% [1] - The underperformance was attributed to the rally being driven by sectors not typically held in the portfolio [1] - Centrus Energy Corp. (NYSEAMERICAN:LEU) experienced a one-month return of -34.95% but a 52-week gain of 208.18%, closing at $254.22 with a market cap of $4.63 billion [2] Group 2 - Centrus Energy Corp. was highlighted as a top contributor in Q3, benefiting from renewed interest in nuclear power due to rising power demand linked to the AI boom [3] - The company is positioned well as a nuclear fuel broker with growing enrichment capabilities, supporting U.S. energy independence [3] - Centrus Energy Corp. was held by 27 hedge fund portfolios at the end of Q2 2025, an increase from 23 in the previous quarter [4]

Core Insights - Centrus Energy (LEU) and Uranium Energy (UEC) are positioned to benefit from the U.S. focus on nuclear energy independence, despite current uranium price pressures [1][2] - The long-term outlook for uranium remains strong due to the clean energy push and its strategic importance highlighted by the U.S. Geological Survey [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, including Low-Enriched Uranium (LEU) and natural uranium hexafluoride [3][4] - In Q3 2025, Centrus reported total revenues of $75 million, a 30% increase year-over-year, with LEU segment revenues rising 29% to $44.8 million [5] - The company experienced an operating loss of $16.6 million, attributed to increased sales costs and project expenses [6] - Despite the operating loss, Centrus posted a net income of $3.9 million due to tax benefits and higher investment income [7] - Centrus holds a $3.9 billion revenue backlog with long-term contracts through 2040 and is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) [7][8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.14 billion by 2035, with Centrus planning to expand production capacity [9][10] Uranium Energy (UEC) - UEC has a production capacity of 12.1 million pounds of uranium and reported fiscal 2025 revenues of $66.84 million, a significant increase from $0.2 million in the prior year [12][13] - Operating costs surged 104% to $66 million due to higher development spending, leading to a loss of 20 cents per share in fiscal 2025 [14][15] - UEC is transitioning from developer to producer, successfully restarting operations at the Christensen Ranch ISR Mine [17] - The company acquired Rio Tinto's Sweetwater Complex, adding significant resources and establishing a vertically integrated production platform [19] Financial Estimates and Valuation - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $448.6 million, indicating a 1.5% growth, while UEC's fiscal 2026 revenues are estimated at $72.9 million, reflecting a 9% improvement [19][22] - Centrus Energy's shares have surged 275.1% year-to-date, while UEC shares have gained 80.7% [27] - Centrus is trading at a forward price-to-sales multiple of 9.29X, significantly lower than UEC's 63.96X [29] - Centrus Energy is viewed as a more attractive investment option due to upward estimate revisions and its unique position in the HALEU market [32]

Core Insights - Centrus Energy Corp. plays a crucial role in the U.S. uranium enrichment capacity and is positioned to support advanced nuclear technology development in the country [1] Company Overview - Centrus Energy Corp. is identified as a key enabler for the U.S. ambitions in uranium enrichment, which is essential for the growth of advanced nuclear technologies [1]

Core Insights - Centrus Energy Corp. plays a crucial role in the U.S. uranium enrichment capacity and is positioned to support advanced nuclear technology development in the country [1] Company Overview - Centrus Energy Corp. is identified as a key enabler for the U.S. ambitions in uranium enrichment, which is essential for the growth of advanced nuclear technologies [1]

Group 1 - BofA has lowered the price target on Centrus Energy (LEU) to $285 from $340, maintaining a Neutral rating on the shares [1] - The firm is updating its price forecasts for North American Metals & Mining stocks under its coverage [1] - The macro backdrop is viewed as challenging due to China's slowing commodity demand, but a potential rebound in demand in the U.S. and Europe may offset this [1]

Core Viewpoint - Centrus Energy's Q3 results prompt a reevaluation of its valuation approach, questioning whether it should be treated as a traditional industrial company or not [1] Group 1: Company Analysis - Centrus Energy's recent performance raises doubts in the market regarding its classification and valuation methodology [1] - The company operates in a complex and dynamic market environment, which influences its financial performance and investment potential [1] Group 2: Market Context - The analysis reflects broader macroeconomic dynamics that impact company-level valuations, particularly in the context of Latin American and global trends [1]

Core Viewpoint - Centrus Energy Corp. is experiencing significant stock performance in 2025, with a notable increase in price target by analysts, reflecting strong market interest and potential growth in the nuclear energy sector [1][4]. Financial Performance - The company announced its third-quarter results on November 5, which were deemed a non-event by analysts, who expected more updates on funding for domestic enrichment projects [2]. - As of September 2025, Centrus Energy Corp. reported a backlog of $3.9 billion, extending through 2040, indicating strong future revenue potential [5]. Stock Performance - Centrus Energy Corp.'s stock has surged over 262% in 2025, with a peak increase of 600% in mid-October before correcting by approximately 50% to settle at $241 as of November 20 [4]. Industry Position - The company is recognized for its advanced gas centrifuge enrichment technology, which is essential for producing High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors [5]. - Centrus Energy Corp. plays a crucial role in supporting U.S. energy security through its domestic enrichment capabilities and long-term supply agreements in the nuclear power industry [6].

Core Viewpoint - The recent decline in Centrus Energy's stock price, down 47% from its 52-week high, may present a buying opportunity as nuclear power gains renewed interest due to increasing electricity demand and advancements in technology [1][3]. Industry Overview - U.S. electricity demand is projected to grow at a compounded annual rate of 2.5%, significantly faster than the previous decade, with nuclear power currently accounting for 18% of U.S. electricity [2]. - The electrification of the grid and advancements in artificial intelligence are driving a resurgence in nuclear energy interest [1]. Company Overview - Centrus Energy is positioned as a key player in the nuclear fuel supply chain, providing low-enriched uranium (LEU) and advanced uranium enrichment services [4][5]. - The company has experienced stock volatility, trading between $50 and $464 this year, with a current price of $241.25 [3][4]. Market Position - Centrus is the only U.S. producer of high-assay, low-enriched uranium (HALEU) licensed by the Nuclear Regulatory Commission, crucial for next-generation nuclear reactors [7][8]. - The company currently relies on external sources for LEU, including a commercial agreement with a Russian entity, which it needs to diversify away from due to upcoming import bans [9]. Growth Potential - Centrus aims to produce LEU and HALEU in-house, contingent on expanding its enrichment capacity at the Piketon, Ohio plant, which requires significant investment and customer commitments [10]. - The stock is currently valued at 48.6 times projected earnings per share (EPS), down from a high of 88 times, indicating potential for growth if the company successfully transitions to a primary domestic supplier [11][12]. Investment Consideration - Despite its high valuation, investor optimism about Centrus's future role in nuclear energy remains strong, making the current dip an attractive entry point for investors [12][13].

Core Insights - The article discusses the performance and potential of SMID-cap stocks in 2025, highlighting their current underperformance compared to large-cap stocks and the expectations for future growth [2][3][4]. Market Overview - SMID-cap stocks have year-to-date total returns of approximately 3% for small caps and 1% for mid-caps, while the S&P 500 Index has returned over 12% [2]. - Expectations for SMID-cap stocks are positive, with forecasts indicating a shift from low-single-digit earnings growth this year to low-double-digit growth by 2026 [4]. Analyst Insights - Scott Chronert from Citi emphasizes the potential for SMID-cap equities as investors seek growth opportunities beyond large-cap stocks, particularly in light of improving earnings forecasts [3][4]. - The article notes that historical performance shows small caps tend to outperform large caps during periods of monetary policy easing, with an average outperformance of 6% in the 12 months following the first rate cut since 1979 [6]. Stock Selection Methodology - The selection of the hottest SMID-cap stocks involved screening U.S.-based stocks with market capitalizations between $300 million and $10 billion, focusing on those with year-to-date returns exceeding 100% and significant hedge fund interest [8][9]. Featured Stocks - Viasat Inc. (NASDAQ:VSAT) has shown a year-to-date total return of 257.9%, with a market cap of $4.1 billion and 37 hedge fund holders. The stock's rise is attributed to positive analyst ratings and potential strategic moves to unlock shareholder value [10][11][14]. - Centrus Energy Corp. (NYSEAMERICAN:LEU) has a year-to-date total return of 262.3%, with a market cap of $4.4 billion and 27 hedge fund holders. The stock's performance is linked to the U.S. government's push for increased nuclear energy capacity and domestic uranium mining [15][17][19].

Core Insights - Centrus Energy Corp. (NYSEAMERICAN:LEU) experienced a significant share price decline of 10.69% from November 11 to November 18, 2025, ranking among the energy stocks that lost the most during that week [1] Financial Performance - The company reported lower-than-expected third-quarter results on November 5, with earnings of $0.19 per share missing estimates by $0.17 and revenue of $74.9 million falling short by $5.52 million [3] - Centrus Energy announced an at-the-market equity offering sales agreement to raise $1 billion, intended for general working capital and corporate purposes [3] Analyst Ratings and Price Targets - Following the Q3 report, JPMorgan analyst Bill Peterson reduced the price target for Centrus Energy from $275 to $245 while maintaining a 'Neutral' rating [4] - Evercore ISI also lowered its price target from $452 to $390 but kept an 'Outperform' rating on the shares [4] Market Conditions - The company has faced additional pressure due to a recent decline in uranium prices, attributed to an improved supply outlook that outweighs speculative bets on nuclear power [4] Stock Performance Overview - Despite the recent decline, Centrus Energy's share price has increased by over 232% since the beginning of 2025 [5]