Got $1,000? This Nuclear Fuel Stock Is the Pick-and-Shovel Play I'd Buy Right Now.
Key PointsThe stock is down 52% so far this year.
The nuclear energy sector has experienced a decline this year, with the Global X Uranium ETF down around 15%. This trend has made it difficult for newer companies to achieve profitability, leading many to overlook the potential of pick-and-shovel nuclear stocks. One such stock is Centrus Energy (LEU -1.63%), which is the only publicly traded proven U.S. uranium enricher.
Despite a 52% decrease in share price this year, Centrus remains a favorable investment opportunity, with improved valuation at approximately 33 times forward earnings.
Centrus operates the sole U.S. Nuclear Regulatory Commission (NRC)-licensed facility capable of producing high-assay low-enriched uranium (HALEU), a crucial fuel for next-generation advanced small modular reactors (SMRs) and microreactors. In July, the company secured a $900 million order to produce HALEU for the U.S. Department of Energy (DOE).
These multi-year supply agreements with emerging reactor developers like X-energy, Radiant Industries, and Antares Nuclear provide Centrus with a central role in the future nuclear tech boom.
In the second quarter, Centrus reported $176.1 million in revenue, a 13.9% increase compared to the same period last year. The company anticipates full-year revenue between $450 million and $500 million, up from $448.7 million in 2025. Centrus boasts a $4.5 billion backlog, with work scheduled out to 2040, highlighting long-term, fixed orders. Over $3.7 billion of this total arises from its primary fuel business, which includes selling standard reactor fuel and uranium to power utilities.
The U.S. lacks a domestic source of enriched uranium for national security and defense needs due to the closure of the Paducah, Kentucky, plant in 2013 and the dependency on Cold War-era stockpiles. Centrus leverages its proprietary AC100M centrifuge, the only American-developed, deployment-ready uranium enrichment system that complies with U.S. legal and national security requirements.
This unique advantage, combined with a growing backlog, positions Centrus as a solid buy, showing promising growth and profitability compared to other AI stocks. The stock's recent decline is likely due to sector concerns rather than its financial strength.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
