The U.S. Army Is Betting on Small Nuclear Reactors. Should You Buy NuScale Power Stock?

Core Insights - NuScale shares increased by 15% following the U.S. Army's launch of the "Janus Program," aimed at accelerating micro nuclear reactor development [1] - The stock has risen over 375% from its year-to-date low in April [2] - The Janus Program indicates policy momentum that presents a lucrative opportunity for NuScale, which is the only company with an approved small modular reactor (SMR) design by the U.S. Nuclear Regulatory Commission [3] Company Positioning - NuScale is well-positioned to secure significant government contracts, which could enhance revenue and validate its technology for broader commercial markets [4] - The announcement from the U.S. Army is expected to boost investor confidence in SMR stocks, attracting both retail and institutional capital [4] Valuation Considerations - Despite a high price-sales (P/S) multiple of 346x, there are compelling reasons to consider NuScale for long-term investment, including its unique regulatory approval status [5] - Renewed trade tensions between the U.S. and China are increasing interest in domestic energy solutions, which may further benefit SMR shares [5] Industry Outlook - Nuclear power is seen as more reliable than renewable sources like solar and wind, strengthening the investment case for NuScale [6] - Wall Street maintains a positive outlook on NuScale, with a consensus rating of "Moderate Buy" and price targets suggesting a potential upside of 12% [7][8]