2 Nuclear Stocks to Buy in November for Energy and AI Growth

Industry Overview - Nuclear energy stocks have become a significant focus on Wall Street, driven by the industry's potential to support the energy transition and the growth of artificial intelligence (AI) [1][2] - In 2023, nuclear energy accounted for 50% of America's carbon-free electricity, establishing it as the leading domestic source of clean energy [2] Nuclear Energy Growth Potential - The U.S. aims to triple its nuclear energy capacity by 2050, with nuclear power plants operating at maximum capacity over 92% of the time, making them nearly twice as reliable as natural gas and three times more reliable than wind and solar [3] - Despite the recent surge in nuclear energy stocks, there remains an opportunity for investors to enter the market at an early stage of the nuclear energy renaissance [3] BWX Technologies (BWXT) - BWX Technologies is a key supplier of nuclear technologies and is expanding its commercial nuclear power segment, with Q3 FY24 earnings results expected on November 4 [4][5] - The company is developing a large production facility in Ontario to support investments in Small Modular Reactors and advanced reactors globally [5] - BWXT is projected to grow its adjusted EPS by approximately 6% in FY24 and FY25, with sales increases of 6% and 5% respectively [6] - BWXT stock has increased by 110% over the past two years, including a 60% year-to-date surge [7] - The stock currently trades at a 40% discount to its highs, with a PEG ratio of 4.3, indicating potential for future growth [8] Constellation Energy (CEG) - Constellation Energy is the largest U.S. nuclear power plant operator, with over 20 reactors across various regions [10] - The company has secured a 20-year power purchase agreement with Microsoft, positioning itself as a key player in the AI nuclear power sector [11] - Constellation plans to enhance its operations through mergers and acquisitions, alongside increasing its dividend per share by 25% in 2024 [12] - The U.S. government is providing support to stabilize nuclear power prices, aiding the industry's expansion [13] - Constellation's stock has risen by 125% in 2024 and over 400% since its 2022 IPO, although it has recently experienced a 9% dip [14] - The stock trades at a 37% discount to its highs, with a PEG ratio of 1.3, reflecting a strong long-term earnings growth outlook [15]