Where to Trade 3 Hot Nuclear Energy Stocks Amid Big Tech Embrace
As the U.S. political landscape shifts with the impending transition to the Trump administration, markets, particularly in the energy sector, are poised to respond to a potentially pro-energy agenda. Historically, the Trump administration has showcased a preference for bolstering traditional energy sources, and this could extend to nuclear energy—a sector increasingly favored by leading technology companies.
Elon Musk, the prominent figure behind Tesla and SpaceX, has voiced strong support for nuclear power, calling past efforts to phase out nuclear plants “total madness.” Musk is not alone in this perspective; major tech firms including Amazon, Alphabet, and Microsoft are beginning to invest significantly in nuclear energy. This shift underscores the reality that the energy demands of data-centric, AI-driven operations are growing, necessitating a more robust and reliable energy supply.
In particular, Microsoft has catalyzed attention with its recent agreement to reopen the infamous Three Mile Island nuclear plant in Pennsylvania, which presents a unique case for future nuclear investment.
Emerging Nuclear Energy Stocks to Watch
Here, we spotlight three notable players in the nuclear sector that may warrant attention from serious investors looking to align with this burgeoning trend.
1. GE Verona (GEV)
GE Verona (GEV), the power spinoff of General Electric, has recently begun independent trading, showing robust performance as shares reached new highs in recent days. With the stock price gravitating around $300, this figure coincides with its 50-day moving average and an established bullish trend line, suggesting potential support for future trades. For investors seeking to enter, a pullback towards the $300 mark would provide an optimal entry point. Should the stock breach its moving average and trend line, a reevaluation of positions is advisable to mitigate losses.
GRADE: B
2. BWX Technologies (BWXT)
BWX Technologies (BWXT), based in Lynchburg, Virginia, is a prominent supplier of components and fuel for nuclear reactors. The company has exhibited impressive gains of 74.5% year-to-date, reaching 52-week highs recently. With a legacy of manufacturing naval nuclear equipment dating back to the 1950s, BWX Technologies is well-positioned for growth as nuclear energy gains traction in broader energy discussions. Notably, the stock’s Relative Strength Index (RSI) indicates it is not overbought despite these gains, allowing room for potential upside. In its latest earnings report, BWX exceeded revenue projections and beat expectations by 7.65%, hinting at resilient operational performance.
GRADE: B+
3. NuScale Power (SMR)
NuScale Power (SMR), based in Oregon, has captured significant attention by designing and marketing small modular reactors—a more compact alternative to traditional nuclear facilities. This stock has skyrocketed with an impressive 781% increase year-to-date. However, it’s essential to approach NuScale with caution; as its price has risen, trading volume has seen a downward trend, indicating potential weak investor conviction behind the price actions. NuScale exemplifies pure momentum, making it an appealing option for nimble traders willing to act quickly to secure profits amid possible volatility.
GRADE: B
Conclusion
As technology corporations intensify their foray into nuclear energy to meet escalating demands, these stocks present intriguing opportunities for savvy investors. However, prudent decision-making is crucial. In dynamic sectors like nuclear energy, characterized by legislative influences and market fluctuations, maintaining a grounded approach is paramount. Monitoring entry points, technical indicators, and market news will serve investors well as they navigate this promising sector in an evolving energy landscape.
Staying informed on macroeconomic factors and advancements in technology will be key to successfully capitalizing on the nuclear energy investment trend going forward. For those convinced of nuclear energy’s potential resurgence, these stocks could form an essential part of a well-rounded commodities portfolio.
