Uranium stocks have been on a strong upward trajectory since fall 2020. Now is the time to take advantage of the increasing demand for uranium and add uranium stocks to your portfolio. We’ve rounded up the best uranium stocks on the market right now.
You might be wondering why uranium stocks are going up in price right now. Before the pandemic, the US imported most of the uranium it needed to operate nuclear power plants. However, COVID-19 shutdowns caused supply chain issues, which led to increased demand for uranium.
To keep the US’s nuclear energy system working properly, the government launched a program to support US uranium companies. As the supply chain has started to return to normal, there’s still plenty of demand for uranium, which has kept uranium stocks moving higher.
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Best Uranium Stocks
Cameco Corp. (NYSE: CCJ)
Cameco Corp. is the largest publicly traded uranium company in the world. They are based in Canada and trade on both the New York and Toronto stock exchanges.
This company has some of the largest uranium mining operations in the world. These include Cigar Lake, which is the highest grade uranium mine in the world and is based in Saskatchewan. They also have mines in Wyoming and Nebraska in the US, as well as in Kazakstan.
Like many other uranium companies, Cameco has been performing very well in 2021. Investors had been feeling bearish about uranium for the past several years, as many people had thought that society would abandon nuclear power for other energy fuels.
However, this didn’t end up being the case. Recent projections anticipate that we’ll still be using nuclear power for the next decade or so.
This is hugely important for Cameco, who produce a significant percentage of the world’s uranium. The company has a significant market cap of $6.76 billion. They had been struggling with a tax dispute, but the Canadian Supreme Court dismissed it in February 2021.
Cameco’s mines were affected by the COVID-19 shutdowns of 2020. As the Canadian government is starting to ease their restrictions, Cameco is slowly returning to their full production capacity. The company is also anticipating an increase in global uranium prices, although we’ll have to wait and see if this comes to fruition.
This could improve Cameco’s financial position even more. With such a large market share, this is definitely a uranium stock to add to your portfolio.
Energy Fuels Inc. (NYSE: UUUU)
Energy Fuels is an American energy company based in Colorado. They are one of the leading producers of uranium in the United States. They currently run the only conventional uranium mill in the US, which is in Utah. Energy Fuels also has mines and exploration projects in Wyoming, Colorado, Utah, and Arizona.
In addition to uranium, Energy Fuels is a large producer of vanadium. They’ve also recently started producing rare earth metals, which sets them apart from other uranium companies in the US.
Right now, rare earth metals are in high demand for new technologies like electric cars. However, right now China is the largest exporter of these resources.
Energy Fuels could provide an American alternative for companies that need rare earth metals. While the uranium sector is doing very well right now, expanding their operations into this new sphere could really benefit the company.
These developments have had a positive effect on Energy Fuels stock. Their stock has nearly tripled in price since fall 2020, and hit a five year high in February 2021.
Best Uranium Mining Stocks
Uranium Energy Corp. (NYSE: UEC)
Uranium Energy Corp. is a uranium mining company with assets throughout the United States. They’re based in Corpus Christi and currently have several properties in Texas, as well as properties in Arizona, Colorado, New Mexico, and Wyoming. They also conduct international exploration work in Paraguay and Canada.
This uranium stock was fairly stagnant earlier in 2020 due to a low demand for uranium. They also sold off shares in September in order to raise money, which temporarily pushed their stock price down.
However, this US uranium company started to see positive growth in December. Rising uranium prices and demand seem to have investors excited. This stock has continued to grow since then, albeit with a few ups and downs.
At just over $2 per share, investors will want to tread carefully here. Because it’s a penny stock, it could be subject to heightened volatility.
Despite these risks, the company’s large portfolio of uranium mining projects is very appealing. Since most of their projects are in the US, they could see growing demand in the future as the US looks to reduce their reliance on foreign imports.
Denison Mines (NYSE: DNN)
Denison Mines is a Canadian uranium mining company. Their headquarters are in Toronto, but the majority of their assets are in Saskatchewan. This includes projects in the lucrative Athabasca Basin.
Although Denison Mines is a penny stock, they saw huge growth at the beginning of February. The stock has dropped a bit from its peak price on February 19th, but they have still achieved nearly 500 percent growth from their low point in March 2020. This growth has continued into April as investors remain bullish on uranium for now.
This company does not currently have any active mines. However, they are working on developing two mines in Saskatchewan. Right now, the company expects to start production at one mine in 2024 and the other in 2030.
They also recently announced the discovery of more high-grade uranium at McClean Lake South. This increases their potential yields once the mine is up and running.
If everything goes as planned, Denison Mines could provide essential uranium supplies to nuclear power plants throughout North America. This is a uranium mining stock to watch over the next few years, although investors should be aware of potential volatility.
Top Uranium Stocks
NextGen Energy Ltd. (NYSE: NXE)
NextGen is a Canadian energy company based in Vancouver. Their properties are all in the Athabasca Basin in Saskatchewan, and include active uranium mines and mills, as well as uranium deposits that have yet to be developed.
NextGen seems committed to expanding their portfolio and their uranium output, as they’ve consistently acquired new properties in the Athabasca Basin over the last decade.
Like many other uranium stocks, NextGen’s share prices have gone up over the past several months. They hit a five-year high in mid-February.
The Athabasca Basin region is very promising, which is what makes this stock such an intriguing pick. As with any penny stock, investors should be aware that there are some increased risks.
Penny stocks can be quite volatile as a result of reduced trading volumes. However, if you’re looking to invest in uranium and nuclear power on a budget, NextGen Energy is a stock worth considering.
IsoEnergy (OTC: ISENF)
IsoEnergy is another Canadian uranium company with assets in the Athabasca Basin in Saskatchewan. They are one of the largest uranium mining companies in Canada, with a portfolio of 15 properties. These include fully developed mines as well as exploration projects.
NextGen Energy actually owns IsoEnergy, although they are publicly traded as separate companies. Together, they produce a significant portion of Canada’s uranium.
The company recently announced a slight restructuring of their management. Their new CEO and director of the board has extensive experience with uranium and nuclear energy, which seems to have investors very excited.
IsoEnergy stock has been steadily going up in price since the beginning of 2021. Much of this growth is a result of a new discovery in the “Hurricane Zone” of the Athabasca Basin. However, it’s still a very affordable stock, so it could be an option for investors wanting to get into the uranium market at an affordable price.
Uranium Penny Stocks
Fission Uranium Corp. (OTC: FCUUF)
Fission Uranium is a small but growing company focused on uranium mining and exploration. They are currently developing a project in the Athabasca Basin in Saskatchewan.
This project is particularly interesting because it is relatively low cost when compared to other uranium mines in the area. The project is in the Triple R uranium deposit, which is easily accessible via highway, even in the winter. The uranium deposit is also very shallow, which should make relatively easy to access once the mine is set up.
Because of this, the Fission Uranium project has the potential to be very inexpensive. The company has conducted feasibility studies to assess the cost of the project.
When investing in any company, their finances are a very important factor to take into consideration. Fission Uranium’s strong business plan should be reassuring to any potential investor.
Since this project is still in development, it may take some time to see significant returns. As always, investors should be aware of the risks of investing in penny stocks before buying.
Forsys Metals (OTC: FOSYF)
Forsys Metals is a mining company that has their headquarters in Toronto, Canada. Their mining operations are in the Norasa uranium project in Namibia. While the company mainly produces uranium, they also have some gold mining operations.
This stock had traded for less than $0.20 per share for over five years. However, an exciting announcement in March 2021 had investors excited, and their share price grew significantly.
This announcement was an $8.5 million private placement deal. This deal will likely bring an increase in revenue for Forsys Metals, and could potentially help their stock price push even higher.
Should You Buy Uranium Stocks?
The US relies on nuclear power for roughly 20 percent of its total energy supply. As we work towards climate-friendly energy solutions, many people have touted nuclear power plants as a good way to reduce our carbon emissions.
Uranium is essential for nuclear power plants to run. This means that there will be consistent demand for uranium as long as these nuclear power plants are up and running.
Many uranium stocks struggled during the early days of the COVID-19 pandemic because of production issues. However, now that the world is starting to reopen, production is speeding up to meet increased demand.
In particular, American companies can stand to benefit from this increased demand. The US government has expressed interest in sourcing uranium domestically instead of importing it. Some of the largest uranium deposits in the world are in Saskatchewan, Canada, but there are also significant deposits in the mountain regions of the US.
Some experts have worried that retail investors could be targeting uranium stocks for a short squeeze. A community of Reddit investors shocked the world earlier this year by short squeezing stocks like GameStop. After several months of sustained growth, this doesn’t seem to be the case for the uranium sector.
Because uranium stocks are on a steady upward trajectory, now is a good time to add them to your portfolio. We don’t know when these stocks will peak, so adding them to your portfolio in the near future can maximize your chance of lucrative returns.
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Uranium Stocks: Final Thoughts
All eyes are on the uranium industry right now as both demand and stock prices are going up. If you haven’t added one of these top uranium stocks to your portfolio yet, now is the time to do so.