In this piece, we will take a look at the 12 best nuclear energy stocks to buy today. If you want to skip our introduction to the nuclear energy industry and some recent trends, then take a look at 5 Best Nuclear Energy Stocks To Buy Today.
These days, the nuclear energy industry is experimenting with a new kind of technology. Nuclear reactors, which bombard radioactive fuel such as uranium or plutonium with neutrons to kick start a chain reaction, are some of the biggest and most complex machines known to humankind. Now, a newer kind of reactor, called a Small Modular Reactor (SMR) is creating traction. As their name might suggest, these reactors are smaller than their older peers, which enables the industry to build them faster and cheaper. One such SMR reactor is being built by a General Electric Company (NYSE:GE) subsidiary GE-Hitachi. The BWRX-300 nuclear reactor aims to deliver 24/7 carbon free electrical power, with a power generation capacity of up to 300 megawatts. For comparison, an average solar panel can produce roughly 300 kilowatts of power on average, so you'd need one thousand solar panels to produce a similar amount of power as the BWRX-300 - with the added caveat of no baseload support in case of poor weather.
Yet, despite their numerous advantages, nuclear energy is often one of the most controversial topics simply due to the massive dangers involved in operating the reactors and disposing of their spent radioactive fuel. Even the slightest of error in operating a nuclear plant can destroy entire towns and leave people with painful diseases such as cancer for the rest of their lives. This has been the case in the U.S. too, with the Three Mile Island disaster continuing to make its mark on the public imagination even today.
However, a growing awareness of the dangers of global warming seems to be shifting public opinion. Or at least that's what a survey from Pew Research claims. Released in August 2023, Pew's data shows that 57% of Americans polled approve of using more nuclear power plants to generate electricity, which is up from the 43% who were in favor just three years back in 2020. Crucially for future policymaking, this shift appears to be bipartisan in nature, since the percentages of Democrats and Republicans have grown.
The high energy efficiency offered by nuclear energy makes it a great source of energy on Earth. This is known. But what about space? After all, 2023 is vastly different from 2013 when it comes to the astronautics industry. We've grown accustomed to regularly seeing rockets launch, and agencies such as the National Aeronautics and Space Administration (NASA) have set their sights on the Moon. And the same SMRs that are picking up fervor in America might also power NASA's lunar base. NASA officially entered the nuclear race for the Moon last year, when it awarded $15 million in contracts to three industry partners for building nuclear plants on the Moon.
So, with nuclear all the buzz these days, we decided to take a look at the best nuclear energy stocks to buy according to hedge funds. Some top names in this list are Cameco Corporation (NYSE:CCJ), NextEra Energy, Inc. (NYSE:NEE), and Vista Energy, S.A.B. de C.V. (NYSE:VIST).
12 Best Nuclear Energy Stocks To Buy Today
Our Methodology
To compile our list of the best nuclear stocks to buy, we used the holdings of VanEck Uranium+Nuclear Energy ETF and companies that own or operate nuclear plants in America and ranked them by the number of hedge fund investors in Q3 2023. Out of these, the top 12 nuclear stocks in terms of hedge fund sentiment were chosen.
BWX Technologies, Inc. (NYSE:BWXT) is an industrial equipment provider that sells nuclear reactors for both military and civilian use. The firm is one of Defense Advanced Research Projects Agency (DARPA) contractors assigned to build a nuclear reactor for a rocket engine slated to fly later this decade.
By the end of September 2023, 20 out of the 910 hedge funds polled by Insider Monkey had held a stake in BWX Technologies, Inc. (NYSE:BWXT). Amy Minella's Cardinal Capital owned the biggest stake among these which was worth $101 million.
Along with NextEra Energy, Inc. (NYSE:NEE), Cameco Corporation (NYSE:CCJ), and Vista Energy, S.A.B. de C.V. (NYSE:VIST), BWX Technologies, Inc. (NYSE:BWXT) is a top nuclear energy stock that hedge funds are buying.
Dominion Energy, Inc. (NYSE:D) is an American utility company that is headquartered in Richmond, Virginia. The firm is one of the handful of American utility companies that are considering SMR nuclear reactors to generate power, and it believes that Virginia could benefit from them as soon as in a decade.
Insider Monkey took a look at 910 hedge fund holdings for this year's third quarter and found that 26 had invested in the company. Dominion Energy, Inc. (NYSE:D)'s largest hedge fund shareholder is Stuart J. Zimmer's Zimmer Partners as it owns 5.3 million shares that are worth $238 million.
DTE Energy Company (NYSE:DTE) is another utility that also operates nuclear power plants. It's also a highly rated stock, as analysts have set an average share price target of $110 and rated the shares as Strong Buy on average.
During 2023's September quarter, 27 out of the 910 hedge funds profiled by Insider Monkey had bought and owned DTE Energy Company (NYSE:DTE)'s shares. Michael Gelband's ExodusPoint Capital owned the biggest stake which was worth $63 million and came via 636,198 shares.
NexGen Energy Ltd. (NYSE:NXE) is a Canadian firm that mines uranium in its home country. Like DTE Energy, its shares are also rated Strong Buy on average. Additionally, the fact that more than half of its shares are owned by either insiders or institutional investors lends the stock stability.
Insider Monkey scoured through 910 hedge funds for their third quarter of 2023 shareholdings to find that 27 were the firm's investors. NexGen Energy Ltd. (NYSE:NXE)'s largest investor in our database is Brad Dunkley and Blair Levinsky's Waratah Capital Advisors due to its $27.5 million investment.
Entergy Corporation (NYSE:ETR) is a diversified American utility company that operates both nuclear and non nuclear power plants. The firm's third quarter earnings saw its profit grow to $667 million from the year ago quarter's $561 million.
As of September 2023, 33 hedge funds out of the 910 tracked by Insider Monkey had bought Entergy Corporation (NYSE:ETR)'s shares. Out of these, the biggest shareholder was Israel Englander's Millennium Management due to its $119 million stake.
NRG Energy, Inc. (NYSE:NRG) is one of the younger American utility companies that was set up in 1989. The firm's $1.75 billion sale of its 44% stake in a Texas nuclear plant left unimpressed as they questioned the relevance of the sale to the company's long term strategic initiatives.
During 2023's third quarter, 35 out of the 910 hedge funds polled by Insider Monkey had held a stake in the company. NRG Energy, Inc. (NYSE:NRG)'s largest investor among these is Paul Singer's Elliott Management as it owns $399 million worth of shares.
Duke Energy Corporation (NYSE:DUK) is one of the largest nuclear energy companies in America. It operates 11 nuclear units in the Carolinas, with a power generation capacity greater than 10,000 megawatts. The shares are rated Buy on average and analysts have set an average share price target of $98.
39 out of the 910 hedge funds profiled by Insider Monkey were Duke Energy Corporation (NYSE:DUK)'s shareholders during Q3 2023. Dmitry Balyasny's Balyasny Asset Management owned the biggest stake which was worth $80.9 million.
Cameco Corporation (NYSE:CCJ), Duke Energy Corporation (NYSE:DUK), NextEra Energy, Inc. (NYSE:NEE), and Vista Energy, S.A.B. de C.V. (NYSE:VIST) are some best nuclear energy stocks to buy.
