3 Nuclear Stocks Investors Can't Overlook: CCJ, CEG, VST

AI and Energy Stocks - The AI frenzy has led to significant attention on energy stocks with nuclear and uranium exposure, such as Constellation Energy (CEG), Cameco (CCJ), and Vistra (VST), due to the high energy consumption of data centers [1] Vistra (VST) - Vistra operates a diverse power generation fleet, including natural gas, nuclear, coal, solar, and battery energy storage facilities [2] - Vistra's shares have surged nearly 200% in 2024, driven by its acquisition of Energy Harbor, which added over 4,000 MW of nuclear generation and approximately one million retail customers [2][3] - The company has secured power purchase agreements with Amazon and Microsoft, further strengthening its market position [3] - Vistra plans to spend at least $2.25 billion on share repurchases in 2024 and 2025, with outstanding shares declining by 29% since November 2021 [4] - The company offers a 14% five-year annualized dividend growth rate, appealing to income-focused investors [5] Cameco (CCJ) - Cameco, one of the world's largest uranium producers, has seen its shares rise 10% over the last month, despite underperforming year-to-date [5] - The company's CEO highlighted strong support for nuclear energy, driven by positive public opinion, policy decisions, and market-based solutions [6] - Cameco's uranium segment reported double-digit percentage growth in production volumes, sales volumes, and revenue year-over-year [6] - The company's top-line trend has improved significantly in recent periods compared to previous years [8] Constellation Energy (CEG) - Constellation Energy's shares surged following the announcement of a deal with Microsoft to restart a nuclear plant, which will supply power to Microsoft's data centers [9] - The company's CEO emphasized the importance of nuclear energy in providing carbon-free and reliable power for industries like data centers [10] - CEG shares have risen nearly 120% year-to-date, outperforming the S&P 500's 20% gain [11] - The company's EPS estimate for the current fiscal year has increased by 26% over the last year, suggesting 60% year-over-year growth [11] Microsoft (MSFT) - Microsoft's shares have lagged behind the S&P 500 in 2024, gaining only 15% despite the company's involvement in the nuclear energy deal with Constellation Energy [12][13] Conclusion - The AI-driven energy consumption theme has gained significant attention, with Constellation Energy, Cameco, and Vistra all experiencing share price increases [14]