Last year's COP28 climate change conference concluded with the participating countries pledging to triple global renewable energy capacity by 2030. That should bolster demand for uranium (UXG24), a critical raw material used to generate nuclear power, that's already been enjoying a boost in popularity. In fact, in September 2023, the World Nuclear Association stated that demand for uranium for nuclear plants is expected to rise to 83,840 tonnes by 2030, and 130,000 tonnes by 2040 - up from 65,650 last year.
At the same time, a significant supply bottleneck has emerged. Kazatomprom, the world’s leading uranium producer, sent ripples through the market after slashing its production forecast due to "challenges related to the availability of sulphuric acid.”
As investors, this supply-demand mismatch presents a prime opportunity to add exposure to top-rated stocks in the uranium industry. Here are five uranium stocks that Wall Street expects to rally from current levels.
Uranium Stock #1: Cameco Corp
Founded in 1988 as a merger between Crown Corporation Saskatchewan Mining and Development Corporation (SMDC) and Canadian Uranium Resources Inc. (CUR), Cameco (CCJ) is the world's largest publicly traded uranium company. Its primary focus is on exploration, mining, milling, and conversion of uranium into fuel for nuclear power plants with additional focus on refining, fuel manufacturing, and investments across the nuclear fuel cycle.
Currently commanding a market cap of $19.96 billion, Cameco stock is up 71.8% over the past year.
Analysts have deemed the stock a “Strong Buy,” with a mean target price of $57.34 - which denotes an upside potential of about 23.7% from current levels.
Out of 9 analysts covering CCJ stock, 6 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 1 has a “Hold” rating.
Uranium Stock #2: Ur Energy
Wyoming-based Ur Energy (URG) is a uranium mining company founded in 2006. It focuses on unconventional mining techniques, such as the environmentally friendly in situ recovery (ISR) method to extract uranium from underground deposits.
Its market cap currently stands at $463.23 million, and Ur Energy stock has gained 35.7% over the past year.
Overall, 3 analysts have unanimously handed out a rating of “Strong Buy” for the stock. The mean target price for URG is $2.40, which indicates an upside potential of 40.4% from current levels.
Uranium Stock #3: Uranium Energy
Founded in 2005, Uranium Energy (UEC) is the largest diversified uranium company in North America, specializing in exploration and extraction, primarily through ISR methods. With assets in South Texas and Wyoming, UEC also owns high-grade conventional uranium projects in Canada.
Currently commanding a market cap of $2.90 billion, Uranium Energy stock has rallied 85.8% over the past year.
Analysts have an overall rating of “Strong Buy” for UEC, with a mean target price of $9.06. This denotes an upside potential of roughly 23.4% from current levels. Out of 5 analysts covering the stock, 4 have a “Strong Buy” rating and 1 has a “Moderate Buy” rating.
Uranium Stock #4: Uranium Royalty Corp
As the name suggests, Uranium Royalty (UROY) is a pure-play uranium royalty company. It acquires royalty interests in existing uranium projects. This means they earn a percentage of the revenue generated from uranium production, without the risks and costs associated with direct operations.
UROY's market cap currently stands at $376.5 million, and the stock has gained 29.5% over the past year.
The two analysts in coverage are split, with 1 “Strong Buy” rating and 1 “Moderate Buy” rating for UROY. The mean price target is $4.67, which denotes an upside potential of about 43.7% from current levels.
Uranium Stock #5: Energy Fuels Inc
Energy Fuels (UUUU) is primarily engaged in the mining, production, and development of uranium, vanadium, and rare earth elements, with operations across the southwestern U.S. The company is the leader in U.S. uranium mining, and is responsible for about two-thirds of domestic uranium production over the past several years.
UUUU's market cap currently stands at $1.18 billion, and the stock has edged up 1.7% over the past 52 weeks.
Four out of five analysts tracking Energy Fuels stock call it a “Strong Buy,” with the lone holdout deeming it a “Moderate Buy.” The mean price target from this group is $9.99, implying upside potential of more than 36% from here.
