Here's Why NuScale Power Stock Is a Buy Before Earnings

Core Viewpoint - NuScale Power is positioned as a leader in the small modular nuclear reactor (SMR) market, with significant potential for growth despite recent stock price declines, as it prepares to report its fourth-quarter results. Group 1: Company Overview - NuScale Power focuses on small modular nuclear reactors (SMRs) designed for various applications, including powering data centers and desalination plants [1] - The company has a market capitalization of $3.8 billion and its shares have decreased over 33% in the past 12 months [2][3] - NuScale's Power Modules can be configured to supply up to 924 MW, sufficient to power large cities or hyperscale data centers [5] Group 2: Competitive Advantage - NuScale holds a first-to-market advantage as it is the only company with an SMR design approved by the U.S. Nuclear Regulatory Commission, with two designs approved: a 50 MW design in 2023 and a 77 MW design in May 2025 [3][4] - SMRs are considered the future of nuclear power due to their flexibility, cost savings, and efficient factory-built modular formats compared to traditional large-scale reactors [7] Group 3: Market Sentiment and Potential - The stock price has already absorbed negative news, and the upcoming earnings report is not expected to raise concerns about profitability, allowing for potential positive surprises [8] - Investors are particularly interested in any announcements regarding contracts, such as the recent agreement with Romanian nuclear provider Nuclearelectrica for a $6 billion to $7 billion project [9] - With a market cap of $3.8 billion, even small catalysts can significantly impact NuScale's stock price, as evidenced by a 23% increase following congressional hearings on nuclear power [10] Group 4: Industry Trends - The last large-scale nuclear reactors built in the U.S. faced significant cost overruns and delays, highlighting the need for more efficient solutions like SMRs [6] - A recent test involving the airlift of a small nuclear reactor demonstrates the potential for rapid deployment of nuclear power for various applications, indicating a growing interest in SMRs [11]