3 Stocks to Buy to Ride the Nuclear Power Renaissance

Industry Overview - President Trump signed an executive order to boost the nuclear energy industry, aiming to overhaul the Nuclear Regulatory Commission and expedite the development of new nuclear power reactors [1] - The executive order is expected to catalyze a resurgence in the nuclear sector, potentially leading to increased demand for nuclear energy [1] Company Insights: NuScale Power - NuScale Power's stock surged following the executive order, reaching all-time highs, although the company currently lacks a marketable product [4][6] - The company is developing small modular reactors (SMRs), which are cheaper and quicker to build compared to traditional nuclear plants, and can be transported closer to population centers [7] - A significant milestone for NuScale will occur in 2025 when RoPower decides on purchasing six SMRs, which could pave the way for future contracts [8] Company Insights: Constellation Energy - Constellation Energy is the leading nuclear power producer in the U.S., with a capacity of 22.1 gigawatts, significantly higher than its nearest competitor [10] - The company sells power under long-term fixed-rate agreements, allowing it to benefit from rising power rates [11] - Constellation is investing in clean energy, including a partnership with Microsoft to restart the Three Mile Island Unit 1 nuclear plant, and is exploring SMR opportunities [12][13] - The company anticipates over 13% compound annual growth in adjusted operating earnings through 2030, with potential for accelerated growth if it finalizes its acquisition of Calpine [14] Company Insights: Cameco - Cameco is positioned to benefit from increased uranium demand as the U.S. aims to quadruple its nuclear energy capacity by 2050 [15] - The company highlighted that nearly 70% of the uranium requirements for future nuclear reactors remain uncovered, indicating a need for approximately 3.2 billion pounds of uranium by 2045 [17] - As one of the largest uranium producers, Cameco is experiencing increased long-term contracting activity and holds a 49% stake in Westinghouse Electric, enhancing its competitive edge [18] - Cameco has a strong financial position, having paid dividends annually since 1991, with a 33% increase last year, making it a favorable investment in the nuclear sector [19]